Tax Cap on State and Local Government Pensions
A house committee must act next: committee consideration.
While tax cuts for retirees are often popular, this bill was introduced by a single member and faces a difficult path through the busy House tax committee.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
State and local government retirees such as teachers, police officers and firefighters, many of whom belonged to public sector unions, would have their federal income tax on pension income capped so it never adds more than $10,000 ($20,000 for a married couple where both spouses have such pensions) to their total tax bill. Retirees with large pension checks that push them into higher tax brackets benefit the most, while those with smaller pensions already owing less than the cap see little or no change.
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Public Service Retirement Tax Relief Act of 2026
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