Georgia Governor Brian Kemp has signed a new law that eliminates taxes on military retirement income

Military retirees in Georgia will no longer need to pay income taxes on their retirement income. Governor Brian Kemp has signed House Bill 266, which will start this tax exemption in the 2026 tax year.

According to estimates, this change will save veterans about $40 million on average. The savings could range from $22 million to $23 million on the low end, and up to $68 million on the high end, as noted by Senator Greg Dolezal during a committee meeting.

Currently, veterans under the age of 62 can get a tax exemption of up to $17,500, and an additional $17,500 exemption if they have other earned income. In Georgia, there are more than 102,500 retired veterans, with over 92,000 receiving military retirement benefits, based on 2022 data from the Department of Defense used in the bill's analysis.

Georgia is one of only 12 states that tax military retirement income. Lieutenant Governor Burt Jones praised the bill, stating that removing the income tax on military retirement benefits is a straightforward way to provide tax relief to those who have served our country. He added that this change will also make Georgia more attractive for veterans transitioning to civilian life, helping them bring their skills to jobs across the state.