OR SB225

Exempts up to $17,500 in federal military retirement pay or pension from Oregon state income tax for taxpayers aged 63 or older

Covers retirement pay from all branches of the Armed Forces, including Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force, and National Guard (regular and reserve components)

Maximum exemption amount adjusted annually based on the Consumer Price Index for All Urban Consumers, West Region, rounded down to the nearest $50

Applies to tax years beginning on or after January 1, 2025, with the first cost-of-living adjustment occurring for tax year 2026

Takes effect on the 91st day after the 2025 legislative session adjourns