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Tax Exemption for Military Income from Certain Overseas Deployments.

This bill expands the federal income tax exclusion to cover earnings of U.S. Armed Forces members during specific, temporary overseas deployments. This means soldiers serving outside the United States (excluding permanent change of station assignments) will receive higher net pay, as their income during that period will not be taxed. These changes take effect starting with the 2026 tax year.
Key points
Introduction of a full federal income tax exclusion for military pay earned during temporary overseas deployments.
The exclusion applies to service outside the U.S. but does not cover income earned under permanent change of station (PCS) orders.
This change directly increases the net income of service members deployed abroad, improving their financial situation.
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Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_6970
Sponsor: Rep. Rogers, Mike D. [R-AL-3]
Process start date: 2026-01-07