As part of the enacted state budget, State Treasurer Fiona Ma co-sponsored legislation to provide a state income tax exemption for military retirement benefits. Beginning in the 2025 tax year and continuing through 2029, eligible veterans and surviving family members may exclude up to $20,000 annually from their California taxable income. This exemption applies to:
- Military retirement pay from federal service
- Survivor annuity payments under the Department of Defense Survivor Benefit Plan (SBP)
