Legislative Priorities

State of Georgia Legislative Priorities

HB 266: Larger Georgia Tax Exclusion for Military Retirement Income

Governor Kemp has signed House Bill 266 into law. It increases the amount of military retirement income that Georgia retirees can exclude from state income tax.

• Higher exclusion: Up to $65,000 of military retirement income can be excluded, up from a maximum of $35,000.
• Simpler rules: The previous requirement to have Georgia earned income to qualify for the full amount is removed.
• Wider age range: The exclusion now applies to retirees under age 65, up from under age 62.
• Married couples: On a joint return, each qualifying spouse is entitled to their own exclusion on their own military retirement income.
• When it starts: The change takes effect January 1, 2027, and applies to tax years beginning on or after that date.

Read the bill as passed (PDF)

Please check with a tax professional or the Georgia Department of Revenue about how this applies to your situation.

Proposed Revision to HB 266: Include All Uniformed Services

HB 266 was a priority for all Georgia MOAA Chapters as well as the Georgia Council of Chapters. We celebrate its becoming law. Unfortunately, through what was undoubtedly an oversight, the law potentially omits our fellow servicemembers in NOAA and the USPHS. Language in the preamble reads, “[S]o as to exempt from taxation certain income received as retirement benefits derived from service in the armed forces of the United States or the reserve components thereof…”

MOAA supports and urges a slight revision to this law so as to read, “[S]o as to exempt from taxation certain income received as retirement benefits derived from service in the armed forces uniformed services of the United States or the reserve components thereof…” This revision would unambiguously include retirement pay received from service in the NOAA and USPHS commissioned officer corps in the new tax exclusion. We also support the efforts of the Commissioned Officers Association of the U.S. Public Health Service in this matter.

National Legislative Priorities

Take action now on important issues facing the uniformed services and veteran communities.

MOAA National Legislative Priorities