WeVote
Log In

Bill

Bill

HB 266

Income tax; exempt income received as personal compensation for full-time duty in the active military service of the United States

2025-2026 Regular Session Introduced by Bethany Ballard and 5 co-sponsors

Georgia exempts active-duty military compensation from state income tax, providing financial relief to service members but reducing state revenue starting July 2025.

Effective Date
#military #emergencymanagement #andveteransaffairs #revenueandtaxation #lawenforcementofficersandagencies
0
WeVote Research Nonpartisan
Bill Summary · HB 266

Legislative bill overview

HB 266 exempts active-duty military compensation from Georgia state income tax. The bill applies to service members serving in the United States Armed Forces and has been signed into law, effective July 1, 2025.

Why is this important

Military families often face financial strain from frequent relocations and separation allowances. This tax exemption provides direct financial relief to active-duty service members stationed in Georgia or claiming Georgia as their tax residence, potentially affecting recruitment and retention incentives for the state.

Potential points of contention

  • Revenue impact: Reduces state income tax revenue from military compensation, requiring analysis of fiscal burden on Georgia's budget or other spending priorities
  • Fairness questions: Creates preferential tax treatment for military income versus other public service professions (teachers, firefighters, law enforcement), raising equity concerns
  • Definition scope: Unclear whether exemption applies to all active-duty compensation (base pay, allowances, bonuses) or specific categories, and how it interacts with federal tax treatment

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

Sign in to ask a question.