--- title: HB 1183. Income tax; exempt income received as personal compensation for full-time duty in the active military service of the United States collection: bills id: 2025-2026/hb1183 cite_as: HB 1183, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/hb1183 md_url: https://georgiacommons.org/bills/2025-2026/hb1183.md text_url: https://georgiacommons.org/bills/2025-2026/hb1183/text source_url: https://www.legis.ga.gov/legislation/72825 date: 2026-02-06 status: introduced corpus_version: bills-2026-09-13 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/hb1182.md next: https://georgiacommons.org/bills/2025-2026/hb1184.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 129 omitted_url: https://georgiacommons.org/bills/2025-2026/hb1183.md?full=1 bill_number: HB 1183 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: House bill_type: bill status_date: 2026-02-04 last_action: House Second Readers sponsors: - Steven Sainz - Josh Bonner - Bethany Ballard - Carmen Rice - James Burchett - Ron Stephens text_version: Introduced has_text: true legiscan_url: https://legiscan.com/GA/bill/HB1183/2025 upstream_id: 2108269 summaries_model: claude-sonnet-5 topic_tags: - income tax - military pay - tax exemptions - veterans and service members --- # HB 1183. Income tax; exempt income received as personal compensation for full-time duty in the active military service of the United States ## Text House Bill 1183 By: Representatives Sainz of the 180th, Bonner of the 73rd, Ballard of the 147th, Rice of the 139th, Burchett of the 176th, and others A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, computation, exemptions, and credits for state income tax, so as to exempt from state income tax income received as personal compensation for full-time duty in the active military service of the United States; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes. BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, computation, exemptions, and credits for state income tax, is amended in subsection (a) of Code Section 48-7-27, relating to the computation of taxable net income, by adding a new paragraph to read as follows: "(12.6) Income received as personal compensation for full-time duty in the active military service of the United States;" SECTION 2. This Act shall become effective on July 1, 2026, and shall be applicable to all taxable years beginning on or after January 1, 2027. SECTION 3. All laws and parts of laws in conflict with this Act are repealed. ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. A Georgia House bill would exempt pay earned for full-time active duty in the U.S. military from Georgia state income tax, starting with the 2027 tax year. ### Plain-language summary Right now, Georgia counts military pay as part of a service member's taxable income under the state's income tax law (O.C.G.A. § 48-7-27). This bill adds a new exemption so that income received as personal compensation for full-time duty in the active military service of the United States would no longer be counted when figuring Georgia taxable income. The change is made by adding a new paragraph to the state income tax computation statute. The bill would take effect July 1, 2026, but the exemption itself would only apply to taxable years beginning on or after January 1, 2027, meaning it would first show up on tax returns filed for that year. ### What it does - Adds a new exemption to Georgia's income tax law (O.C.G.A. § 48-7-27) excluding pay for full-time active military duty from state taxable income. - Applies specifically to compensation for full-time active duty in the military service of the United States, as opposed to part-time or reserve status pay. - Sets a delayed effective date of July 1, 2026, with the exemption applying only to tax years starting on or after January 1, 2027. - Repeals any existing state laws that conflict with the new exemption. ### Who it affects Active-duty members of the U.S. military who are Georgia taxpayers, since their full-time duty pay would no longer be subject to Georgia state income tax. The Georgia Department of Revenue would also be affected because it would need to update tax computation rules and forms. ### Why it matters Active-duty service members filing Georgia income taxes for 2027 and later would owe state tax on less of their income, since their military pay would be excluded from the calculation. This could lower their overall state tax bill, though the change would not take effect for nearly two more years. ### Key provisions - Section 1 amends Code Section 48-7-27(a) by adding a new paragraph (12.6) exempting income received as personal compensation for full-time active military duty from Georgia taxable income. - Section 2 sets the effective date as July 1, 2026, and specifies the exemption applies to taxable years beginning on or after January 1, 2027. - Section 3 repeals any conflicting laws, a standard provision clearing away inconsistent existing statutes. ## Status - Status: Introduced (2026-02-04) - Last action: House Second Readers (2026-02-06) - Sponsors: Steven Sainz, Josh Bonner, Bethany Ballard, Carmen Rice, James Burchett, Ron Stephens - Official page: https://www.legis.ga.gov/legislation/72825 > The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb1183.md?full=1