Senate BillPassed first houseRevenue and Taxation
SB 1407: Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay.
What SB 1407 does, verified August 15, 2026
The bill aims to amend the personal income tax law to exclude certain types of income from gross income. For taxable years beginning on or after January 1, 2025, and before January 1, 2030, it excludes up to $20,000 of retirement pay received from the federal government for service performed in the uniformed services, and up to $20,000 of income annuity payments received from a Department of Defense survivor benefit plan. The bill also eliminates income limitations for taxpayers and the $20,000 limitation on income eligible for exclusion. The exemption is extended until taxable years beginning before January 1, 2037. The bill takes effect immediately as a tax levy.
Bill journey
✓IntroducedComplete
✓In CommitteeComplete
✓First Chamber FloorComplete
4Second ChamberCurrent
5GovernorPending
6ChapteredPending
Last action: August 13 hearing: Held in committee and under submission. (2026-08-13)Alert me
Author and sponsors
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| Aug. 13, 2026 | August 13 hearing: Held in committee and under submission. |
| Aug. 05, 2026 | August 5 set for first hearing. Placed on suspense file. |
| Jun. 30, 2026 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 29). Re-referred to Com. on APPR. |
| Jun. 23, 2026 | June 22 set for first hearing. Placed on suspense file. |
| Jun. 17, 2026 | From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 8. Noes 0.) (June 16). Re-referred to Com. on REV. & TAX. |