No Tax on Military Pay
H.R. 6189 and its Senate companion S. 3246, the Service Members Tax Relief Act, would eliminate federal income tax on military pay for active duty and reserve component service members, including drill pay, annual training pay, ADSW and ADOS pay, bonuses, and special and incentive pays.
Talking Points
Use these when contacting your representatives.
Guard and reserve pay is earned one weekend and two weeks at a time, and H.R. 6189 and S. 3246 would stop the federal government from taxing it.
The Service Members Tax Relief Act exempts drill pay, annual training pay, and ADSW and ADOS pay from federal income tax.
Eliminating federal tax on military pay puts more money directly into the pockets of Soldiers and Airmen.
The bill also removes federal income tax from bonuses and special and incentive pays, raising take-home pay without changing base compensation.
Higher take-home pay strengthens recruiting and retention at a time when the Guard needs both.
By increasing the real value of drill and training pay, the bill makes Guard service more competitive with civilian employment.
This is a concrete way to honor service members who train part-time but stand ready full-time.
The Service Members Tax Relief Act recognizes that Guard members meet continuous readiness standards while carrying civilian jobs and families.
Quick Facts
- Category
- tax relief
- Bills Tracked
- 2