(The Center Square) – The Georgia House of Representatives passed a bill Friday that would remove the income tax on military retirement benefits.
House Bill 266 would return an average of $40 million to the more than 95,000 military retirees living in Georgia. Current law allows an income tax exemption of the first 17,500.
The legislation is “word for word” Senate Bill 31, which senators passed on March 3, said Sen. Greg Dolezal, R-Cumming.
“It’s not often that we get to do things here that I think so fundamentally changes the lives of a very, very important group of people who served our country,” Dolezal said when presenting the bill.
Sen. David Lucas, D-Macon, was the only senator to vote against the bill on March 3. Sen. Kim Jackson, D-Stone Mountain, also voted “no” on Friday.
“That’s $40 million that you will not be able to touch or appropriate,” Lucas said. “What’s happening in Washington, D.C., and the things that are being cut, my personal opinion is we’re going to have to pick up some of that cost.”
Georgia is currently one of 12 states that still levies an income tax on military retirement.
“Eliminating the income tax on military retirement benefits is a common-sense approach to providing tax relief to heroes who have risked their lives to keep our communities, state and nation safe,” said Lt. Gov. Burt Jones. “Allowing these benefits to be earned tax-free will also help make Georgia a leading destination for service men and women as they transition from the military into civilian life and bring their talents and experience to workplaces across our state.”
It’s the third income tax-related bill passed this week by the General Assembly.
The Senate passed House Bill 111, which would reduce the income tax rate from 5.29% to 5.19% for the 2025 tax year. The state is reducing the number by 0.10% until it reaches 4.99%.
House Bill 112, also passed by the Senate on Thursday, would give single taxpayers a $250 tax credit and married one $500. Money for the $1 billion tax break was included in the fiscal year 2025 midyear budget adjustment.
