CA AB2226

Excludes specified amounts of military retirement pay from California gross income for taxable years beginning January 1, 2021 through December 31, 2030.

Provides a phased exclusion: 50% for the first two years, 75% for years three and four, and 100% for year five and beyond.

Applies to retirement pay from federal government service in uniformed services, including Armed Forces, Army/Air National Guard on active duty, and U.S. Public Health Service commissioned corps.

Requires the Legislative Analyst to report by December 1, 2030 on the exclusion's effectiveness, including analysis of veteran participation, economic security impacts, and out-migration rates.

Sunsets on December 1, 2031, and takes effect immediately as a tax levy.