SB1

Exempts up to $20,000 of military retirement pay and survivor benefits from California state income tax for certain taxpayers.

The Military Services Retirement and Surviving Spouse Benefit Payment Act excludes up to $20,000 of military retirement pay and survivor benefits from California state income tax for qualified taxpayers. A qualified taxpayer is a surviving spouse or other beneficiary of a Department of Defense Survivor Benefit Plan with an adjusted gross income not exceeding $250,000 for joint filers or $125,000 for other individuals. The exclusion applies for taxable years beginning on or after January 1, 2024, and before January 1, 2034.