Service Members Tax Relief Act

Senate Bill

S. 3246

119th Congress

Service Members Tax Relief Act

In Committee

Introduced:Nov 20, 2025

Primary Sponsor

Pete Ricketts

R - NE

Cosponsors

0

Quick Stats

Policy Area

Taxation

Summary

The Service Members Tax Relief Act exempts all compensation earned by active duty and reserve military service members from federal income tax. Retirement pay and pensions remain taxable. This provides significant tax relief to approximately 2 million service members.

Latest Action

Read twice and referred to the Committee on Finance.

AI Summary

Plain-English explanation of this bill

The Service Members Tax Relief Act exempts all compensation earned by active duty and reserve military service members from federal income tax. Retirement pay and pensions remain taxable. This provides significant tax relief to approximately 2 million service members.

Last updated: 12/27/2025

Key Points

Main provisions of the bill

Exempts active duty military pay from federal income tax
Exempts reserve member compensation from taxation
Retirement pay and pensions remain taxable
Applies to all branches of uniformed services
Effective for tax years after enactment

How This Impacts Americans

Potential effects on citizens and communities

Active duty and reserve service members across all military branches would see significant income tax savings. Enlisted members and officers alike benefit. Military families retain more of their earnings. May improve military recruitment and retention.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

3246, 119th Congress (2025). "Service Members Tax Relief Act". Source: Voter's Right Platform. https://votersright.org/bills/119-s-3246