Governor Brian Kemp signed House Bill 266 into law at a ceremony held at the Georgia State Capitol on May 13, 2025. The bill, which was sponsored by State Representative Steven Sainz, aims to increase the exemption for military retirement benefits from $35,000 to $65,000 for individuals under the age of 65. This change will allow many retired veterans to have their military retirement benefits fully exempt from state income tax.
“As Georgia continues historic reductions to every citizen’s income tax and transitions to a flat tax system, this full exemption is a targeted step to support the military families who have not only served our nation but represent a prime segment of our skilled workforce,” said Rep. Sainz.
The bill also includes provisions that expand resources for local law enforcement by allowing individuals and businesses to redirect their state tax liability to local police foundations. “That means more resources for our local law enforcement—sheriff’s offices and police departments alike—without having to wait on decisions from Atlanta,” added Rep. Sainz.
State Senator Greg Dolezal commented on the legislation’s impact: “HB 266 is exactly the kind of conservative tax policy Georgia needs—honoring our veterans, shrinking government’s reach and keeping our state competitive.”
Leanna Brown from the Metro Atlanta Chamber highlighted the significance of HB 266: “We are grateful to Governor Kemp for signing HB 266 and to the General Assembly for advancing this milestone legislation which not only honors Georgia’s military veterans but also encourages them to put down roots in Georgia and keep their considerable skills in our workforce.”
Georgia hosts over 750,000 veterans and several major military installations. The passage of HB 266 reinforces the state’s commitment to honoring military service and ensuring that Georgia remains welcoming for those who have served.
