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SF 4902

Firefighter pension income taxation subtraction establishment

2025-2026 Regular Session Introduced by Andrew Mathews

Minnesota bill would allow firefighters to subtract pension income from state taxes, reducing their tax liability on retirement benefits.

Referred to Taxes
#fireandfirefighters #retirement #taxation-income
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Bill Summary · SF 4902

Legislative bill overview

SF 4902 would establish a subtraction from Minnesota state income tax for firefighter pension income. This means firefighters receiving pension payments would be able to exclude a portion or all of their pension income from state taxable income, similar to exemptions that exist for some other public employees or military retirees in various states.

Why is this important

Firefighters represent a specialized workforce with unique occupational hazards and often shorter career windows than typical public employees. Tax policy affecting their retirement income directly impacts their post-service financial security and could influence recruitment and retention in fire departments across the state. This also relates to broader questions about how states prioritize tax benefits for different public service sectors.

Potential points of contention

  • Scope and cost: Whether the subtraction applies to all firefighter pensions or only certain types, and the fiscal impact on state revenue—particularly if unfunded or if it creates inequities with other public employees
  • Equity across professions: Whether firefighters should receive preferential tax treatment compared to police officers, teachers, or other public servants, or conversely, whether this should be extended more broadly
  • Pension sustainability: Questions about whether tax incentives for pension recipients align with or complicate state pension funding obligations and long-term fiscal planning

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

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