NEWS: Rep. Mike Levin Calls on State of California to Fully Eliminate State Taxes on Military Retiree Pensions
In June 2025, California Legislature Passed a New Policy That Excludes Up To $20,000 In Annual Military Retirement Benefits from State Income Taxes
Washington, D.C. – Today, Rep. Mike Levin (CA-49), member of the House Appropriations Subcommittee on Military Construction and Veterans Affairs, sent a letter to California Governor Gavin Newsom urging him to support fully eliminating state income taxes on military retirees with federal pensions and thanking him for signing into law a pension exclusion of up to $20,000 in California’s recent budget.
“Several years ago, I wrote to urge you to join me and California’s veteran and military service organizations in the effort to reduce state taxes on military pensions. For many years, California was the only state that fully taxed military retirement pay, leaving California veterans at a disadvantage. This new exclusion will help lessen the disproportionate tax burden for 130,000 of 140,000 veterans receiving monthly military retirement benefits in California. This is a strong first step towards ensuring equity for California veterans,” Rep. Levin wrote.
Rep. Levin has continuously pushed for the complete elimination of state taxes on military pensions throughout his time in Congress. In 2022, Levin, at the time, Vice Chair of the House Committee on Veterans’ Affairs, wrote a letter to Governor Newsom calling on California to lower state taxes on military retirement benefits. He has continued to fight for the change in his role as the federal representative of Marine Corps Base Camp Pendleton and the surrounding community of veterans.
Click here or read the full letter below:
As a member of the House Military Construction and Veterans Affairs Appropriations Subcommittee and representative for Marine Corps Base Camp Pendleton, I have long supported reducing state taxes on military retirees with federal pensions. I write to thank you for signing into law an exclusion of up to $20,000 in annual military retirement benefits from state income taxes.
Several years ago, I wrote to urge you to join me and California’s veteran and military service organizations in the effort to reduce state taxes on military pensions. For many years, California was the only state that fully taxed military retirement pay, leaving California veterans at a disadvantage. This new exclusion will help lessen the disproportionate tax burden for 130,000 of 140,000 veterans receiving monthly military retirement benefits in California.11 This is a strong first step towards ensuring equity for California veterans.
However, there is still more we can do. According to the California Legislative Analyst’s Office, California’s new policy is still one of most limited in the country. I support the complete elimination of state taxes on military pensions and urge you to join me in this effort.
Thank you for your consideration and please contact me if I can be of assistance.
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