Full Income Tax Exemption for Active and Reserve Military Pay.
This bill introduces a complete exemption from federal income tax for compensation received by active and reserve members of the Uniformed Services for their service. This change directly increases the disposable income of service members by making their regular military earnings tax-free. However, this exemption does not apply to military pensions or retirement pay.
Key points
Compensation earned by active and reserve members of the U.S. Uniformed Services is fully excluded from gross income for tax purposes.
This measure provides significant financial relief, increasing the take-home pay for military personnel.
Military retirement pay and pensions remain subject to federal income tax.
Status:
Introduced
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