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2026 rules · verified against California's primary source
California partially exempts military retirement pay (up to about $20,000); the rest is taxable.
New for 2025-2029: exclude up to $20,000 of military retirement pay if AGI is under $125k (single) / $250k (joint); otherwise fully taxed.
Treatment
partially exempt
Exemption up to
$20,000
Top marginal rate
13.30%
Source: https://lao.ca.gov/LAOEconTax/Article/Detail/820 · verified July 2026
Estimated California state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
More California: all California veteran benefits · military retirement tax in every state · what your pension is worth