WASHINGTON, D.C. – U.S. Congressman Brian Mast (FL-21) today introduced the No Tax on Military Bonuses Act, which would exempt all enlistment and reenlistment bonuses paid to members of the U.S. Armed Forces from taxation. Under current law, service members are taxed at their marginal tax rate for these bonuses, while those deployed in combat zones are exempt from tax.

"Military service members raise their right hands to defend our country, and in return, they deserve to keep every cent of the bonus they earn," said Rep. Brian Mast. "This bill removes the unfair tax burden that has long affected military bonuses and keeps hard-earned money in the pockets of our soldiers, sailors, Airmen, Marines, and Guardians."

The No Tax on Military Bonuses Act would ensure that all military bonuses—whether for enlistment, reenlistment, retention, or other incentive bonuses—are exempt from federal taxes. This would significantly reduce the financial strain on military families and better reflect the challenges these men and women face while serving our nation.

The bill would cover all bonuses paid by the Secretary of the Armed Forces to members who agree to reenlist, extend their service commitment, or accept a commission as an officer.

119-No Tax on Bonuses Final Bill Text by Brian Mast on Scribd