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Georgia moves to exempt military retirement pay from taxes

Georgia
Posted at 12:32 PM, Feb 28, 2022
and last updated 2022-02-28 12:32:07-05

ATLANTA, Ga. — Georgia would exempt up to $35,000 a year in military retirement income from state income tax under a bill passed Monday by the state House. Representatives voted 161-0 for House Bill 1064.

The measure moves to the Senate for more debate. The state is projected to forgo an estimated $55 million to $60 million in taxes annually. Republican Gov. Brian Kemp has been backing the exemption. Supporters say it will make living in the state more attractive for military veterans.

Under the measure, a veteran's first $17,500 in retirement pay would be exempt from Georgia's state income tax. Another $17,500 of retirement pay would be exempt if a veteran earned that much from another source.