Bill > AB53

This bill introduces a tax exclusion for military service members and surviving spouses by allowing certain retirement and survivor benefit payments to be excluded from California state income tax. Specifically, for taxable years between 2025 and 2030, qualified taxpayers can exclude up to $20,000 of retirement pay from uniformed services and up to $20,000 of annuity payments from the Department of Defense Survivor Benefit Plan. To be considered a "qualified taxpayer," individuals must meet income thresholds: surviving spouses filing jointly must have an adjusted gross income not exceeding $250,000, while other individuals must have an adjusted gross income not exceeding $125,000. The bill emphasizes recognizing the sacrifices of military families and providing financial relief to those who have lost a loved one in service. The legislation defines "uniformed services" broadly, including not just the Armed Forces but also the National Guard, Public Health Service Commissioned Corps, and National Oceanic and Atmospheric Administration Commissioned Officer Corps. The bill aims to honor veterans, potentially retain skilled military retirees in California, and support families who have experienced military loss by offering modest tax relief.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB53