Establishes a cap on income taxes for certain pensions under the Internal Revenue Code.

The Public Service Retirement Tax Relief Act of 2026 amends the Internal Revenue Code to introduce a cap on income taxes for certain pensions. Specifically, it limits the tax amount to the sum of the non-pension tax amount and an additional $10,000, or $20,000 for qualified joint returns. This cap applies to taxable years beginning after December 31, 2025.

Establishes a cap on income taxes for certain pensions under the Internal Revenue Code.

The Public Service Retirement Tax Relief Act of 2026 amends the Internal Revenue Code to introduce a cap on income taxes for certain pensions. Specifically, it limits the tax amount to the sum of the non-pension tax amount and an additional $10,000, or $20,000 for qualified joint returns. This cap applies to taxable years beginning after December 31, 2025.