WeVote
Log In

Bill

Bill

HB 266

CIVIL LAW-TECH

104th Regular Session Introduced by Chris Welch

House Bill 266 exempts up to $17,500 of military retirement income from Georgia state tax, boosting financial relief for veterans and their families starting in 2027.

Rule 19(a) / Re-referred to Rules Committee
0
WeVote Research Nonpartisan
Bill Summary · HB 266

Summary of House Bill 266 (HB 266)

Overview

House Bill 266 (HB 266) is a legislative proposal introduced in Georgia aimed at amending income tax regulations concerning retirement benefits for military service members. The bill seeks to exempt certain retirement income from taxation, thereby providing financial relief to veterans and their families.

Main Purpose and Intent

The primary intent of HB 266 is to amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated to exempt income received as retirement benefits from military service in the United States Armed Forces or reserve components from state income tax. This initiative is designed to honor the service of military personnel and support their financial well-being post-service.

Key Provisions

  1. Tax Exemption for Retirement Benefits:

    • Individuals under the age of 65 can exclude up to $17,500 of retirement income from military service from their taxable income.
    • An additional exclusion of up to $17,500 is available for those with Georgia earned income exceeding $17,500.
    • For tax years beginning on January 1, 2027, the maximum exclusion amount will increase annually by $5,000 until it reaches $65,000.

  2. Married Couples:

    • Each spouse filing jointly may individually exclude retirement income up to the specified limits.

  3. Effective Date:

    • The bill is set to become effective on July 1, 2026, and will apply to all taxable years starting on or after January 1, 2027.

  4. Repeal of Conflicting Laws:

    • Any existing laws that conflict with the provisions of this act will be repealed.

Who Would Be Affected

  • Military Veterans: The bill directly benefits veterans receiving retirement income from their military service.
  • Married Couples: Spouses of veterans will also benefit from the individual exclusions.
  • State Revenue: The bill may impact state tax revenue by reducing the taxable income of eligible individuals.

Legislative Timeline

  • Introduced: February 4, 2025
  • House Passed: March 6, 2025
  • Senate Passed: March 21, 2025
  • Signed by Governor: May 13, 2025
  • Effective Date: July 1, 2026

Conclusion

HB 266 represents a significant step towards providing financial relief to military veterans in Georgia by exempting a portion of their retirement income from state taxation. This legislation not only acknowledges the sacrifices made by service members but also aims to enhance their financial stability in retirement.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.