Military Retired Pay Income Tax Exclusion
About This Benefit
Beginning tax year 2025, California allows military retirees with federal adjusted gross income up to $125,000 (single) or $250,000 (married filing jointly) to exclude up to $20,000 of military retired pay from state income tax.
Military Retired Pay Income Tax Exclusion is a state benefit administered by the U.S. Department of Veterans Affairs for eligible veterans in California.
To qualify, veterans must meet the following requirements: must be a resident of california.
Why This Benefit Matters
Direct savings. Tax exemptions put money back in your pocket every year. Depending on your state and property value, this could save you thousands annually — money that compounds over time.
Who Qualifies
- Must be a resident of California
Available in: CA
Last Verified
February 5, 2026
Likely CurrentSource
Official .gov sourceLast verified: February 5, 2026
Next Steps
Gather your documents
Most applications require your DD-214, VA disability rating letter, and state ID. Some benefits may require additional documentation.
Contact the administering office
Visit the official source above for application instructions, or contact your state veterans affairs office for assistance.
Consider working with a VSO
A Veterans Service Organization (VSO) can help you navigate the application process at no cost. They're trained to maximize your benefits.
This information is for general reference only and is not a legal eligibility determination. Always verify with a VA-accredited representative.