25 LC 50 1209S
House Bill 266 (COMMITTEE SUBSTITUTE)
By: Representatives Sainz of the 180
th
, Ballard of the 147
th
, Bonner of the 73
rd
, Clark of the
100
th
, Petrea of the 166
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
1
income taxes, so as to exempt from taxation certain income received as retirement benefits2
derived from service in the armed forces of the United States or the reserve components3
thereof; to provide for related matters; to provide for an effective date and applicability; to4
repeal conflicting laws; and for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,8
is amended in Code Section 48-7-27, relating to computation of taxable net income, by9
revising paragraph (5.1) of subsection (a) as follows:10
"(5.1)(A) Up to $17,500.00 of income
Income received by an individual who is less11
than 62 65 years of age paid to such individual as retirement benefits from military12
service in the armed forces of the United States or the reserve components thereof and13
an additional amount of up to $17,500.00 of such income, provided that he or she has14
Georgia earned income otherwise included in his or her Georgia taxable net income in15
an amount that exceeds $17,500.00 in an amount that shall not exceed $35,000.00 for16
H. B. 266 (SUB)
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the taxable year beginning on January 1, 2027; provided, however, that such maximum17
amount shall be increased by $5,000.000 annually thereafter until such amount reaches18
$65,000.00.19
(B) In the case of a married couple filing jointly, each spouse who is otherwise20
qualified for an exclusion allowed by this paragraph shall be individually entitled to21
exclude retirement income received by that spouse up to the exclusion amount.22
(C) The exclusions provided for in this paragraph shall not apply to or affect and shall23
be in addition to those adjustments to net income provided for under any other24
paragraph of this subsection; provided, however, that no individual shall be allowed an25
exclusion provided for in this paragraph in addition to any exclusion provided for in26
paragraph (5) of this subsection;"27
SECTION 2.28
This Act shall become effective on July 1, 2026, and shall be applicable to all taxable years29
beginning on or after January 1, 2027.30
SECTION 3.31
All laws and parts of laws in conflict with this Act are repealed.32
H. B. 266 (SUB)
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