Public Service Retirement Tax Relief Act of 2026
To amend the Internal Revenue Code of 1986 to establish a cap on income taxes on certain pensions.
This bill, HB9750, proposes to change the Internal Revenue Code to place a limit on how much income tax retirees must pay on certain pensions. This means that retirees would have a maximum tax amount on their pension income, potentially reducing their tax burden.
The bill would primarily affect retirees who receive pensions, particularly those with significant pension income. By capping the income tax on pensions, it aims to provide financial relief to retirees, allowing them to keep more of their pension income.
HB9750 was introduced on July 16, 2026, and is currently in its initial stage, having been referred to the House Committee on Ways and Means. This committee will review the bill, potentially making changes or recommendations before it proceeds to a vote in the House. The bill has not yet been voted on or passed in any chamber.
