This bill allows military members to keep more of their pay by not taxing earnings from specific overseas deployments. It recognizes the unique challenges faced by service members stationed abroad.
If you are a military member deployed overseas, you could pay less in taxes on your earnings.
Who this affects
Armed Forces members overseas
What changes is this bill making?
1This bill would exclude certain overseas earnings from taxes for military members.
2It applies to both enlisted personnel and commissioned officers.
3The definition of 'overseas' includes any area outside the United States.
4Service under permanent change of station orders does not qualify for this exclusion.
5The changes would take effect for tax years starting after December 31, 2025.
