California 20252026 Regular Session Status: Introduced Bipartisan · 1 D · 1 R cosponsors

SB 1407 — Personal Income Tax Law: exclusions: military retirement pay: survivor benefit pay.

Last action — August 13 hearing: Held in committee and under submission.

  1. 1
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed Assembly
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been introduced in the Senate. Introduced February 20, 2026. It must pass committee before a floor vote.

Next likely step: a committee referral and hearing.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.

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A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 48% · moderate confidence

  • Introduced

    Current position in the legislative process.

  • 3 sponsors

    1 primary, 2 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (1 D · 1 R) — cross-party backing.

  • Cleared a recorded vote

    Passed 7 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

This bill increases income tax exclusions for military retirement and survivor benefits.

The bill extends and raises tax exclusions for military retirement pay and survivor benefits to $40,000, adjusting for inflation. It also mandates additional information on tax expenditures.

What this means for you
  • Workers: If you are a qualified taxpayer receiving military retirement pay or survivor benefits, you may benefit from increased tax exclusions.

Summary

The Personal Income Tax Law, in conformity with federal income tax laws, defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income, including, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, an exclusion from gross income for retirement pay received by a qualified taxpayer, as defined, during the taxable year, not to exceed $20,000, from the federal government for service performed in the uniformed services, as defined, and an exclusion for income annuity payments received by a qualified taxpayer, as defined, not to exceed $20,000, pursuant to a United States Department of Defense Survivor Benefit Plan, as specified. Existing law defines "qualified taxpayer" for the purpose of these exclusions to mean taxpayers that satisfy specified income limitations. This bill would amend the above-described exclusions to annually adjust the income limitations for taxpayers for inflation, as provided, and to increase the limitation on income eligible for exclusion to $40,000. The bill would also extend the exclusions until taxable years beginning before January 1, 2037. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

Bill Text

Action History

  1. August 13 hearing: Held in committee and under submission.

  2. August 5 set for first hearing. Placed on suspense file.

  3. From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 29). Re-referred to Com. on APPR.

  4. June 22 set for first hearing. Placed on suspense file.

  5. Coauthors revised.

  6. From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 8. Noes 0.) (June 16). Re-referred to Com. on REV. & TAX.

  7. Re-referred to Coms. on M. & V.A. and REV. & TAX. pursuant to Assembly Rule 96.

  8. Referred to Coms. on REV. & TAX. and M. & V.A.

  9. In Assembly. Read first time. Held at Desk.

  10. Read third time. Passed. (Ayes 39. Noes 0. Page 4526.) Ordered to the Assembly.

  11. Ordered to special consent calendar.

  12. Read second time. Ordered to third reading.

  13. From committee: Do pass as amended. (Ayes 7. Noes 0. Page 4276.) (May 14).

  14. Read second time and amended. Ordered to second reading.

  15. Set for hearing May 14.

  16. April 27 hearing: Placed on APPR. suspense file.

  17. Set for hearing April 27.

  18. From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0. Page 3956.) (April 20). Re-referred to Com. on APPR.

  19. Read second time and amended. Re-referred to Com. on M. & V.A.

  20. From committee: Do pass as amended and re-refer to Com. on M. & V.A. (Ayes 5. Noes 0. Page 3795.) (April 8).

  21. Set for hearing April 8.

  22. March 25 set for first hearing canceled at the request of author.

  23. Set for hearing March 25.

  24. Referred to Coms. on REV. & TAX. and M. & V.A.

  25. Read first time.

  26. From printer. May be acted upon on or after March 23.

  27. Introduced. To Com. on RLS. for assignment. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 2 co-sponsors · 119 not signed on

Sponsors (1)

Co-sponsors (2)

Not signed on (119)

119 members have not signed on to this bill.

Show all 119 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Do pass and be re-referred to the Committee on [Revenue and Taxation]

Passed 8 Yea · 0 Nay
Party YeaNayPresentNot Voting
Republican 2000
Democratic 6000
Total 8000
% of votes cast 100%0%0%0%
How each member voted (8)
Member Party Vote
Boerner, Tasha Democratic Yea
Carrillo, Juan Democratic Yea
Irwin, Jacqui Democratic Yea
Ramos, James C. Democratic Yea
Schiavo, Pilar Democratic Yea
Valencia, Avelino Democratic Yea
Davies, Laurie Republican Yea
Gonzalez, Jeff Republican Yea

Official roll call →

Special Consent SB1407 Archuleta et al.

Passed 39 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Democratic 30000
Republican 9001
Total 39001
% of votes cast 98%0%0%3%
How each member voted (40)
Member Party Vote
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Arreguín, Jesse Democratic Yea
Ashby, Angelique V. Democratic Yea
Becker, Josh Democratic Yea
Blakespear, Catherine S. Democratic Yea
Cabaldon, Christopher Democratic Yea
Caballero, Anna M. Democratic Yea
Cervantes, Sabrina Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
McNerney, Jerry Democratic Yea
Menjivar, Caroline Democratic Yea
Padilla, Stephen C. Democratic Yea
Pérez, Sasha Renée Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Richardson, Laura Democratic Yea
Rubio, Susan Democratic Yea
Smallwood-Cuevas, Lola Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wahab, Aisha Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wiener, Scott D. Democratic Yea
Alvarado-Gil, Marie Republican Yea
Choi, Steven S. Republican Yea
Dahle, Megan Republican Not Voting
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea
Seyarto, Kelly Republican Yea
Strickland, Tony Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Subjects

taxation veterans
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Frequently asked questions

What does SB 1407 do?
The Personal Income Tax Law, in conformity with federal income tax laws, defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income, including, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, an exclusion from gross income for retirement pay received by a qualified taxpayer, as defined, during the taxable year, not to exceed $20,000, from the federal government for service performed in the uniformed services, as defined, and an exclusion for income annuity payments received by a qualified taxpayer, as defined, not to exceed $20,000, pursuant to a United States Department of Defense Survivor Benefit Plan, as specified. Existing law defines "qualified taxpayer" for the purpose of these exclusions to mean taxpayers that satisfy specified income limitations. This bill would amend the above-described exclusions to annually adjust the income limitations for taxpayers for inflation, as provided, and to increase the limitation on income eligible for exclusion to $40,000. The bill would also extend the exclusions until taxable years beginning before January 1, 2037. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
Who sponsors SB 1407?
SB 1407 is sponsored by Schiavo, Choi, Steven S. (Republican), and Archuleta, Bob (Democratic).
What is the current status of SB 1407?
This bill has been introduced in the Senate. Introduced February 20, 2026. It must pass committee before a floor vote.
Where can I track SB 1407?
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