California Remains Only State to Tax Veterans' Retirement Income — But That Could Change

California stands alone as the only state in the country that taxes military veterans on their retirement income—but that distinction may soon disappear. After years of unsuccessful efforts, lawmakers are once again pushing to give veterans a break.

Assemblyman James Ramos, a Democrat, previously introduced legislation that would have exempted veterans’ full retirement income from state taxes. That bill failed, but this year, Ramos has introduced a revised version. The new proposal would exempt up to $20,000 in federal military pension income for veterans earning less than $125,000 annually.

State Senator Kelly Seyarto, a Republican from Murrieta, has introduced a similar bill in the Senate. Both lawmakers hope to finally bring California in line with the other 49 states that already offer tax relief to veterans.

On The Roggin Report, contributors Doug and Jamie Baker weighed in on the issue. Doug stated firmly, “We should be like the other 49 states. Can we possibly do enough to thank our veterans? I don’t think we can.” Jamie added, “Why are we taxing everybody and anything—and not supporting those who’ve served our country?”

While critics say the tax break could cost the state an estimated $130 million this year, supporters argue it's a small price to pay to support those who served.

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