Tax Cuts for Veterans Act of 2025

HR 6190, the Tax Cuts for Veterans Act of 2025, makes military retirement pay and disability-related benefits tax-free for veterans and active-duty service members. The bill amends the tax code to exclude all retirement pay (under Titles 10 and 14 U.S. Code) and disability compensation (under Titles 10, 14, 37, or 38 U.S. Code) from taxable income. This directly affects veterans receiving retirement or disability benefits, including those with combat-related injuries, by eliminating federal income tax on these payments. The policy change applies to taxable years beginning after the bill's enactment.