A plan to eliminate the income tax on military retirement benefits was approved by the Georgia House of Representatives on Friday.
House Bill 266 would give Georgia’s over 95,000 military retirees an average of $40 million back. The current law exempts the first 17,500 from income tax.
Senator Greg Dolezal, a Republican from Cumming, stated that the measure is “word for word” with Senate Bill 31, which was enacted on March 3.
“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 as he introduced the bill.
On March 3, only one senator—D-Macon’s Sen. David Lucas—voted against the bill. On Friday, Stone Mountain Democrat Sen. Kim Jackson also cast a “no” vote.
“That’s $40 million that you will not be able to touch or appropriate,” Lucas stated. “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.”
Twelve states still impose an income tax on military retirement, including Georgia.
“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 Lieutenant Governor 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.”
This week, the General Assembly enacted three bills pertaining to income taxes.
House Bill 111, which would lower the income tax rate from 5.29% to 5.19% for the 2025 tax year, was approved by the Senate. Until it hits 4.99%, the state is cutting the number by 0.10%.
House Bill 112, which was also approved by the Senate on Thursday, would provide a $250 tax credit to single taxpayers and a $500 tax credit to married taxpayers. The fiscal year 2025 midyear budget adjustment provided funds for the $1 billion tax break.
