Georgia General Assembly · Full text

SB 26: State Income Taxes; with regard to military retirement income, to determine and apply a cost-of-living adjustment to the amount of allowable retirement pay; require the state revenue commissioner

Introduced version, the latest LegiScan holds · Last action January 12, 2026 · Introduced

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25 LC 46 0957

Senate Bill 26

By: Senators Rhett of the 33rd, Harbison of the 15th, Payne of the 54th, Bearden of the 30th, Hickman of the 4th 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 imposition, rate, computation, exemptions, and credits relative to state income taxes, so as to require the state revenue commissioner, with regard to military retirement income, to determine and apply a cost-of-living adjustment to the amount of allowable retirement pay excluded from Georgia taxable net income; to provide for rules and regulations; 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 imposition, rate, computation, exemptions, and credits relative to state income taxes, is amended by adding a new paragraph to subsection (a) of Code Section 48-7-27 to read as follows:

"(5.2) The commissioner shall by regulation establish and maintain rules concerning the determination and application of cost-of-living adjustments to the amount of allowable retirement pay excluded from Georgia taxable net income with regard to income received 25 LC 46 0957

as retirement benefits for military service. Such rules shall include the determination and use of an appropriate cost-of-living index which reflects the effects of inflation and deflation on persons receiving retirement income in this state for military service in the armed forces of the United States or the reserve components thereof. In the regulation of such rules, the commissioner may use the Consumer Price Index as reported by the Bureau of Labor Statistics of the United States Department of Labor as such index is used to determine adjustments to social security payments or any other similar index established by the federal government if the commissioner determines that such federal index reflects the effects of inflation and deflation on persons receiving retirement income in this state for military service in the armed forces of the United States or the reserve components thereof. Any such cost-of-living adjustment determined appropriate by the commissioner shall result in a proportional adjustment to the amount of military retirement income excluded from Georgia taxable net income."

SECTION 2.

This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years beginning on or after January 1, 2026.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.