(The Center Square) – Military retirees living in Georgia will no longer have to pay income taxes on their retirement income.
Gov. Brian Kemp signed House Bill 266 into law, which exempts the taxes beginning with the 2026 tax year.
The fiscal note on the bill said the average amount returned to veterans will be $40 million. The low end is $22 million to $23 million and the high end is $53 million to $68 million, Sen. Greg Dolezal, R-Cumming, said in a committee hearing during the session.
Under the current law, retired veterans under the age of 62 received up to a $17,500 exemption on their income tax and an additional $17,500 exemption if they have at least $17,500 of earned income.
More than 102,500 retired veterans live in Georgia, and more than 92,000 receive military retirement benefits, according to 2022 statistics from the Department of Defense, which were included in the bill’s fiscal note.
Georgia is one of just 12 states that taxes military income.
“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 in a statement supporting the bill. “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.”
