Heroes’ Tax Exemption Act of 2025

# Heroes' Tax Exemption Act of 2025 - Plain Language Summary **What the Bill Would Do** This bill would allow active-duty members of the U.S. Armed Forces to exclude their military pay from federal income taxes. In other words, military personnel would not have to pay federal income tax on the salary they earn while serving on active duty.

This is different from current law, where active-duty military members must pay federal income taxes like other workers, though they do receive some tax benefits (such as housing allowances that are already tax-free). **Who It Affects and Current Status** The bill would directly benefit active-duty service members in the Army, Navy, Air Force, Marine Corps, Coast Guard, and Space Force. It was introduced by Representative Jefferson Van Drew (R-NJ) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives. The bill has no official companion Senate version listed yet.