California Exempts Veterans’ Retirement Pay From State Taxes

In a move that has been celebrated by many in the military community, California Governor Gavin Newsom recently signed a bill into law that exempts veterans' retirement pay from state taxes. This new legislation, which took effect immediately, is expected to provide significant financial relief to thousands of retired service members living in the state.

The bill, which had broad bipartisan support in both the state Assembly and Senate, aims to recognize the sacrifices made by veterans and to encourage more retired military personnel to make California their home. Under the new law, all military retirement pay, including pensions and survivor benefits, will be exempt from state income taxes. This change is projected to save veterans an average of $4,000 annually, depending on their retirement income.

Supporters of the bill argue that it is a small but meaningful way for the state to show appreciation for the service and sacrifices of its veterans. They also hope that the tax exemption will help attract more military retirees to California, boosting local economies and contributing to the state's workforce.

However, critics of the measure have raised concerns about the potential loss of state revenue. They argue that the tax exemption could lead to a shortfall in the state budget, which may impact funding for other essential services. Despite these concerns, the overwhelming support for the bill in the state legislature suggests that the benefits for veterans were seen as outweighing the potential fiscal drawbacks.

This new law marks a significant change in California's approach to supporting its veteran population and is likely to have a positive impact on the lives of many retired service members in the state.

• California
• Gavin Newsom
• Veterans

Detailed

California is the only state that doesn't exempt veterans' retirement from taxes. Is this the year that changes?

3 weeks ago

- laist