Governor Gavin Newsom has officially included a military retirement tax exemption in the 2025–26 California state budget proposal.
For the first time, California is poised to join every other state in providing a state income tax exemption for military retirees and their surviving spouses. Under this proposal, up to $20,000 of military retirement pay or survivor benefit annuity will be excluded from California taxable income each year, starting with the 2025 tax year. This exemption will be available to those with an adjusted gross income under $125,000 (single) or $250,000 (joint filers).
This historic change is the result of years of advocacy by veterans, service organizations, and legislative champions like Assemblymember James Ramos and Senator Kelly Seyarto. The exemption is included in both the Governor’s budget and in active legislation (AB 53 and SB 1). If enacted, this will help keep more veterans in California, allow you to keep more of your hard-earned retirement, and send a clear message that our state values your service.
While this is a significant step forward, our work is not done. I want to extend my heartfelt thanks to everyone who has engaged in grassroots advocacy on this critical issue throughout the year-your voices have genuinely made a difference. We must stay focused on the next critical milestone: the May 23 deadline to move SB 1 and AB 53 out of the Appropriations Committees and onto the floor for a full vote by the Legislature. Reaching this stage is essential, as it will bring even greater attention and momentum to our cause, ensuring lawmakers understand just how vital this tax relief is for California’s veterans.
Please share this news with your fellow veterans and stay tuned for more updates as we work to get this across the finish line.
Please use the resources below to send a letter to the appropriations committee if you have not done so yet. If you need help or support please do not hesitate to ask.
Pre written letter link: https://www.notion.so/
Send in your letter via the portal: https://calegislation.lc.ca.
Please send these messages to your posts, friends, and family.
