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.
View on Congress.gov