(The Center Square) – A bill that would exempt military retirement benefits from Georgia’s income tax was greenlighted by the Senate Finance Committee.
Sen. Greg Dolezal, R-Cumming, said 38 states do not tax military benefits, including surrounding states.
The fiscal note on the bill says the average amount returned to veterans is $40 million. The low end is $22 million to $23 million and the high end is $53 million to $68 million, Dolezal told the committee.
More than 102,500 retired veterans live in Georgia and more than 92,000 receive military retirement benefits, according to 2022 statistics from the Department of Defense included in the bill’s fiscal note.
If passed, the bill would take effect with the tax year beginning Jan. 1, 2026.
“I think that these veterans personify the exact types of citizens we want to both attract and retain in the state,” Dolezal said. “They’re civic minded and add a richness to the communities they ultimately locate to.”
The state currently offers a tax break on military retirement income thanks to a bill that was passed by lawmakers in 2022, according to the Department of Revenue. Retired veterans under the age of 62 up to a $17,500 exemption and an additional $17,500 exemption if they have at least $17,500 of earned income.
The exemption increases to up to $35,000 for veterans between the ages of 62 and 64, and those older than 65 can receive up to $65,000.
The bill has bipartisan support.
This article was originally published at www.thecentersquare.com
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