SB-1407 • 2026

Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Archuleta
Last action: 2026-06-08
Official status: Re-referred to Coms. on M. & V.A. and REV. & TAX. pursuant to Assembly Rule 96.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay.

SB 1407, as amended, Archuleta.

What This Bill Does

SB 1407, as amended, Archuleta.
Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay.
The Personal Income Tax Law, in conformity with federal income tax laws, defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income, including, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, an exclusion from gross income for retirement pay received by a qualified taxpayer, as defined, during the taxable year, not to exceed $20,000, from the federal government for service performed in the uniformed services, as defined, and an exclusion for income annuity payments received by a qualified taxpayer, as defined, not to exceed $20,000, pursuant to a United States Department of Defense Survivor Benefit Plan, as specified.
Existing law defines “qualified taxpayer” for the purpose of these exclusions to mean taxpayers that satisfy specified income limitations.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-06-08 California Legislative Information
Re-referred to Coms. on M. & V.A. and REV. & TAX. pursuant to Assembly Rule 96.
2026-06-04 California Legislative Information
Referred to Coms. on REV. & TAX. and M. & V.A.
2026-05-28 California Legislative Information
In Assembly. Read first time. Held at Desk.
2026-05-28 California Legislative Information
Read third time. Passed. (Ayes 39. Noes 0.) Ordered to the Assembly.
2026-05-26 California Legislative Information
Ordered to special consent calendar.
2026-05-18 California Legislative Information
Read second time. Ordered to third reading.
2026-05-14 California Legislative Information
Read second time and amended. Ordered to second reading.
2026-05-14 California Legislative Information
From committee: Do pass as amended. (Ayes 7. Noes 0.) (May 14).
2026-05-08 California Legislative Information
Set for hearing May 14.
2026-04-27 California Legislative Information
April 27 hearing: Placed on APPR. suspense file.
2026-04-22 California Legislative Information
Set for hearing April 27.
2026-04-21 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0. Page 3956.) (April 20). Re-referred to Com. on APPR.
2026-04-09 California Legislative Information
Read second time and amended. Re-referred to Com. on M. & V.A.
2026-04-08 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on M. & V.A. (Ayes 5. Noes 0. Page 3795.) (April 8).
2026-03-25 California Legislative Information
Set for hearing April 8.
2026-03-12 California Legislative Information
March 25 set for first hearing canceled at the request of author.
2026-03-11 California Legislative Information
Set for hearing March 25.
2026-03-04 California Legislative Information
Referred to Coms. on REV. & TAX. and M. & V.A.
2026-02-23 California Legislative Information
Read first time.
2026-02-23 California Legislative Information
From printer. May be acted upon on or after March 23.
2026-02-20 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 1407, as amended, Archuleta.
Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay.
The Personal Income Tax Law, in conformity with federal income tax laws, defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income, including, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, an exclusion from gross income for retirement pay received by a qualified taxpayer, as defined, during the taxable year, not to exceed $20,000, from the federal government for service performed in the uniformed services, as defined, and an exclusion for income annuity payments received by a qualified taxpayer, as defined, not to exceed $20,000, pursuant to a United States Department of Defense Survivor Benefit Plan, as specified. Existing law defines “qualified taxpayer” for the purpose of these exclusions to mean taxpayers that satisfy specified income limitations.
This bill would amend the above-described exclusions to annually adjust the income limitations for taxpayers for inflation, as provided, and to increase the limitation on income eligible for exclusion to
$80,000.
$40,000.
The bill would also extend the
exemption
exclusions
until taxable years beginning before January 1, 2037.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill also would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

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