California Takes Historic Step to Support Veterans and Surviving Spouses

By Derek Barksdale, Founder of Military Mutual | July 2025

California has finally joined the ranks of other states recognizing the sacrifices of our military families by easing the tax burden on retired veterans and surviving spouses.

As part of the recently signed 2025-26 California State Budget, Governor Gavin Newsom approved a groundbreaking tax relief measure that provides a long-overdue benefit to our veteran community.

 What’s Changing?

For decades, California was the only state that fully taxed military retirement pay, adding financial strain to those who dedicated their lives to serving our country. That changes starting in 2025.

The new state budget includes:

 A state income tax exemption of up to $20,000 per year on military retirement pay and Survivor Benefit Plan (SBP) payments.
 The exemption applies to individuals with an adjusted gross income (AGI) of $125,000 or less, and up to $250,000 for joint filers.
 Dedicated funding to improve conditions at veterans' homes across the state, enhancing the quality of life for those who live in these facilities.

 Why This Matters

As a retired Navy officer and the Founder of Military Mutual, I’ve seen firsthand how California's high cost of living and tax structure have impacted our military families. This new legislation reflects meaningful progress toward making our state more welcoming and financially supportive for veterans.

Whether you’re retired military, a surviving spouse, or part of a military family planning for the future, this tax relief offers real financial breathing room.

 Resources for More Information

For those who want to learn more, here are direct sources confirming this exciting development:

• California Approves First-Ever Tax Cut for Retired Veterans and Surviving Spouses – CA Legion

• Governor Newsom's Official 2025-26 State Budget Announcement

• CA National Guard Association Coverage

 Our Commitment to Veterans

At Military Mutual, we exist to serve those who serve — through real estate, education, financial resources, and advocacy. Whether you're buying, selling, renting, or simply looking for trustworthy information, we’re committed to being a resource for veterans, active-duty members, and their families.

If you have questions about how this tax change impacts your homeownership plans, property management, or long-term financial goals, please don’t hesitate to contact our team.

Together, we continue building a stronger, more supportive community for those who sacrificed so much.

Proud to serve,

Derek Barksdale
Founder & Broker, Military Mutual
Retired U.S. Navy Officer | Advocate for our Military, Veterans and their Families

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