Senator Seyarto introduces bill to exempt military retirement and survivor benefits from income tax

State Senator Kelly Seyarto, R-Murrieta, represents California's 32nd Senate District. Valley News/Courtesy photo
SACRAMENTO – Senator Kelly Seyarto (R-Murrieta) announces that he has introduced his first bill of the 2025-2026 legislative session. SB 1 will benefit Veterans and surviving family members by exempting military retirement income and Survivor Benefits Plans (SBP) from state taxation.Over 27,000 surviving family members and 141,000 retirees now receive their benefits in California. Military retirement is earned through at least 20 years of service, while SBPs are optional benefits paid out to a surviving spouse or child after the service member’s death. While life insurance payments are tax-free, these payments to widowed spouses and children of deceased service members are subject to state income tax.Currently, 49 states either partially or fully exempt military retirement and
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