If passed, the Service Members Tax Relief Act would eliminate federal income tax on all active-duty and reserve pay, as well as military bonuses.
The post New bill seeks to exempt military pay from federal income tax first appeared on Federal News Network.
...https://federalnewsnetwork.com/congress/2025/11/new-bill-seeks-to-exempt-military-pay-from-federal-income-tax/There is also another bill in the works, Tax Cuts for Veterans Act of 2025, a measure that would amend Section 122 of the Internal Revenue Code to exclude all military retirement pay and veterans’ benefits from federal income taxes. This includes all retired and retainer pay under Titles 10 and 14, as well as all VA monthly benefits, including disability compensation and survivor payments covered under Titles 37 and 38.
Good! We shouldn’t be letting our service members work paycheck to paycheck! They’re already underpaid for what they do for us!