Bill > HR823

This bill, known as the "Heroes' Tax Exemption Act of 2025," proposes to amend the Internal Revenue Code to completely exempt active duty military servicemembers from paying federal income tax on their earnings. Specifically, the bill would add a new section (Section 139J) to the tax code that would exclude all income earned by active duty Armed Forces members from gross income, effectively making their military pay tax-free. The tax exemption would take effect after the second October 1st following the bill's enactment, which means there is a built-in delay before the tax benefit would be implemented. By removing income tax obligations for active duty servicemembers, the bill aims to provide financial relief and recognition for military personnel who serve the United States, acknowledging their sacrifices and service to the country. The proposed legislation would represent a significant change in how military compensation is treated for tax purposes, potentially making military service more financially attractive and providing additional economic support to those who serve in the armed forces.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/823/all-info