InsiderAdvantage: Legislation Would Create Income Tax Exemption for Military Retirees
Thursday, February 10th, 2022
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Recent reports indicate that one in 10 Georgians (nearly one million) are associated with the military –including 750,000 veterans– and Georgia has the fifth largest military population in America with an economic impact of over $28 billion yearly. In an effort to support the state’s veterans, State Representative Jesse Petrea (R-Savannah) introduced legislation last week that would create a tax exemption for military retirement income. Petrea is carrying HB 1064 on behalf of Gov. Brian Kemp.
Kemp recently announced that he would support legislation to provide up to $35,000 in income tax exemptions for military retirees in Georgia.
“I have worked on this measure for the last eight years, so I am honored to carry it for Governor Kemp,” said Petrea, who chairs the House Human Relations & Aging Committee. “I appreciate the governor’s commitment to supporting Georgia’s military retirees, especially as the cost of living has sky-rocketed this last year. Not only is this a priority for our governor, but it is also a priority for the House Republican Caucus.”
According to Petrea, House Bill 1064 would exempt up to $17,500 in military retirement income from state income taxes for retired service members under 62 years old. If a military retiree continues to work and earns up to $17,500, the retiree would be eligible for an additional exemption up to $17,500 in state income taxes for a total exemption of $35,000.
Under House Bill 1064, it would become effective on July 1, 2022.
Kemp actually announced his plans to push such legislation late last month when he met with a group of veterans and local leaders at the VECTR Training Center in Warner Robins. At that meeting, Kemp said the goal was: “to number one, thank our members of the military and our veterans. But also help those that are retiring, exempting their retirement income before they get the standard exemption.” Currently, the standard exemption is age 62.
The five states with the highest military population are California, Virginia, Texas, North Carolina and Georgia. According to reports, there are currently 33 states that do not tax any of military retirement pay, while 14 states offer special considerations for military retirement income or other pension plans.