California Bills Would Provide Tax Exemption for Veterans’ Retirement up to $20,000

Two companion bills, Senate Bill 1 and Assembly Bill 53, would provide military veterans with state tax exemptions.
California Bills Would Provide Tax Exemption for Veterans’ Retirement up to $20,000
The California state capitol building in Sacramento, Calif., on March 13, 2024. Arturo Holmes/Getty Images for National Urban League
Cynthia Cai
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California is currently the only state that taxes veterans’ retirement income, and state lawmakers have initiated a new bipartisan effort to change that.

Two companion bills, Senate Bill 1 and Assembly Bill 53, are seeking to provide military veterans with some financial relief by granting state tax exemptions on up to $20,000 of their federal pensions if they make less than $125,000 a year.