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Military Bonuses Exempt from Federal Income Tax Starting 2025

This bill introduces a significant financial benefit for service members. Starting in 2025, specific bonuses paid to members of the uniformed services, such as enlistment or reenlistment bonuses, will be excluded from federal gross income. This change allows military personnel to keep the full amount of these bonuses without paying income tax on them, increasing their take-home pay.
Key points
Military bonuses paid to members of the uniformed services will no longer be counted as taxable income.
This change increases the actual take-home pay service members receive from these specific bonuses by eliminating the tax burden.
The new tax rules apply to tax years beginning after December 31, 2024.
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Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_3515
Sponsor: Rep. Kiggans, Jennifer A. [R-VA-2]
Process start date: 2025-05-20