119-hr-6189119th CongressWALLET

Service Members Tax Relief Act

Sponsored By: Representative Hamadeh, Abraham J. [R-AZ-8]

Introduced

Summary

Creates an income tax exclusion for pay earned by active and reserve members of the U.S. Uniformed Services. This bill would let service members exclude compensation for active or reserve service from federal gross income while explicitly excluding pensions and retirement pay from that exclusion.

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  • Service members and their households: Would lower taxable income for qualifying service pay, which can reduce federal income tax owed on that pay.
  • Military retirees: Pensions and retirement pay are not eligible, so retirement income stays under current tax rules.
  • Tax law change and timing: Adds Section 139J to the Internal Revenue Code and updates the code’s table of sections. The change would apply to taxable years beginning after enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax exclusion for military pay

If enacted, active and reserve members of the Uniformed Services would be able to exclude from federal gross income compensation they received for service during the taxable year. The exclusion would not apply to pensions or retirement pay. It would take effect for income earned in tax years beginning after the date of enactment.

Sponsors & CoSponsors

Sponsor

Hamadeh, Abraham J. [R-AZ-8]

AZ • R

Cosponsors

  • Rep. Moore, Barry [R-AL-1]

    AL • R

    Sponsored 11/20/2025

  • Rep. Massie, Thomas [R-KY-4]

    KY • R

    Sponsored 11/20/2025

  • Del. King-Hinds, Kimberlyn [R-MP-At Large]

    MP • R

    Sponsored 11/21/2025

Roll Call Votes

No roll call votes available for this bill.

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