California SB1407 excludes military retirement pay and survivor benefit pay from gross income for certain taxpayers.

California SB1407 amends the Revenue and Taxation Code to exclude military retirement pay and survivor benefit pay from gross income for qualified taxpayers. For taxable years beginning on or after January 1, 2025, and before January 1, 2037, gross income does not include retirement pay up to $80,000 from the federal government for service in the uniformed services. For taxable years beginning on or after January 1, 2026, and before January 1, 2037, gross income does not include annuity payments up to $40,000 from the United States Department of Defense Survivor Benefit Plan.

California SB1407 excludes military retirement pay and survivor benefit pay from gross income for certain taxpayers.

California SB1407 amends the Revenue and Taxation Code to exclude military retirement pay and survivor benefit pay from gross income for qualified taxpayers. For taxable years beginning on or after January 1, 2025, and before January 1, 2037, gross income does not include retirement pay up to $80,000 from the federal government for service in the uniformed services. For taxable years beginning on or after January 1, 2026, and before January 1, 2037, gross income does not include annuity payments up to $40,000 from the United States Department of Defense Survivor Benefit Plan.