To amend the Internal Revenue Code of 1986 to exclude from gross income the earnings from certain overseas deployments of members of the Armed Forces.

Sponsor: Mike D. Rogers (Republican-AL)January 7, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Ways and Means.

Lets military members serving overseas keep more of their pay by making it tax-free.

This bill would let members of the U.S. military serving overseas keep more of their pay by making certain earnings tax-free. Both enlisted personnel and commissioned officers would no longer pay federal income tax on money earned during qualifying deployments outside the United States. This change would not apply to pay received during a permanent change of station overseas.

What Would Change

Today, members of the Armed Forces only get a federal income tax exclusion for pay earned in a combat zone or during hospitalization due to combat. Pay from other overseas deployments is currently taxed as regular income. If this bill passes, pay earned during certain overseas deployments (not permanent changes of station) would also be excluded from federal income tax. This would start with earnings in 2026.

Key Provisions

Lets enlisted members of the Armed Forces exclude pay from certain overseas deployments from their taxable income.
Lets commissioned officers of the Armed Forces exclude pay from certain overseas deployments from their taxable income.
Defines "overseas" as any area outside the United States, including its territories and possessions, for tax purposes.
Clarifies that pay from permanent change of station orders overseas would not be tax-free.
Starts applying to taxable income earned in 2026 and later.

View on Congress.gov

HR 6970 · 119th Congress · January 7, 2026 · AI Summary by gemini-2.5-flash · 9/10

To amend the Internal Revenue Code of 1986 to exclude from gross income the earnings from certain overseas deployments of members of the Armed Forces.

What Would Change

Key Provisions

Lobbying Activity