Urges Congress to pass legislation that exempts military retirement pay from federal income taxation.

ACR132

ASSEMBLY CONCURRENT RESOLUTION No. 132

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Sponsored by:

Assemblywoman� CAROL A. MURPHY

District 7 (Burlington)

SYNOPSIS

���� Urges Congress to pass legislation that exempts
military retirement pay from federal income taxation.

CURRENT VERSION OF TEXT

���� As introduced.

��

A
Concurrent Resolution
respectfully urging
Congress to exempt military retirement pay from federal income taxation.

Whereas,

Retirement payments received by individuals for service in the military that
are based on an individual�s length of service, or length of service and age,
and which are not related to a disability suffered by the individual, are
taxable for federal income tax purposes; and

Whereas,

Members of the Armed Forces and of the Reserves dedicate years of their lives
to the service of this country, often being separated from their families for
extended periods, forgoing more lucrative employment, and facing
life-threatening dangers; and

Whereas,

Generally, 20 years or more of service on active duty in the United States
Army, Navy, Air Force, or Marine Corps� may qualify an individual for� military
retirement pay; and

Whereas,

Qualifying years of service for purposes of military retirement pay generally
include those served in active service, active duty for training, active duty
for special work, temporary tour of active duty, full-time National Guard duty,
and Active Guard or Reserve time; and

Whereas,

Retirement is generally viewed as a time for rest and relaxation and an
opportunity to pursue hobbies or interests that were precluded by the demands
of full-time employment; and

Whereas,

Military retirees face unique challenges, including reassimilating into
civilian life, finding affordable housing, re-entry into the civilian job
market, and possibly dealing with issues such as post-traumatic stress; and

Whereas,

Military retirement pay is distinguishable from a veteran�s pension, which is a
nontaxable benefit for individuals that have served a requisite number of days
in active duty service during wartime, and meet certain other criteria; and

Whereas,

Individual states vary in their tax treatment of military retirement pay, and
the extent to which they may allow certain retirement pay to be excluded from
taxation by the particular state; and

Whereas,

In light of their considerable sacrifice, and in recognition of their years of
service to the United States and its people, individuals who have served in the
Armed Forces or Reserves should be relieved of the burden of federal income
taxation of their military retirement pay; now, therefore,

����
Be It
Resolved
by the General Assembly of the State
of New Jersey (the Senate concurring):

���� 1.��� The Legislature of the
State of New Jersey respectfully urges Congress to enact legislation that
exempts military retirement pay from federal income taxation.

���� 2.��� Copies of this
resolution, as filed with the Secretary of State, shall be transmitted by the
Clerk of the General Assembly or the Secretary of the Senate to every member of
the New Jersey Congressional delegation.

STATEMENT

���� This resolution respectfully
urges Congress to enact legislation that exempts military retirement pay from
federal income taxation. Members of the Armed Forces and of the Reserves
dedicate years of their lives to the service of this country, often being separated
from their families for extended periods, forgoing more lucrative employment,
and facing life-threatening dangers. Generally, 20 years or more of service on
active duty in the United States Army, Navy, Air Force, or Marine Corps may
qualify an individual for military retirement pay.

���� Military retirees face unique
challenges, including reassimilating into civilian life, finding affordable
housing, re-entry into the civilian job market, and possibly dealing with
issues such as post-traumatic stress. In light of their considerable sacrifice,
and in recognition of their years of service to the United States and its
people, individuals who have served in the Armed Forces or Reserves should be
relieved of the burden of federal income taxation of their military retirement
pay.