Financial Benefits for Veterans in California
2 Financial benefits for veterans in California.
Business License, Tax & Fee Waiver for Veteran Vendors
Under Business and Professions Code Section 16001.7, honorably discharged California veterans may hawk, peddle, and vend their own goods without paying municipal, county, or state business license fees, and the licensing body must issue the license at no cost.
Eligibility: Honorably discharged or honorably relieved veteran who is a California resident, selling goods, wares, or merchandise they own (excluding alcoholic beverages).
Estimated value: Waiver of business/peddler license fees (varies by locality)
How to apply: Request the veteran's exemption/waiver from your city or county licensing or tax collector's office, presenting your discharge documentation.
Partial Income Tax Exclusion for Military Retirement Pay
Beginning with the 2025 tax year, California allows an income tax exclusion of up to $20,000 of military retirement pay or Survivor Benefit Plan (SBP) income, a first for a state that previously fully taxed such income. The exclusion is scheduled to run through 2029.
Eligibility: Taxpayers receiving military retirement pay or SBP income, with adjusted gross income up to $125,000 (single/head of household) or $250,000 (married filing jointly). The exclusion is capped at $20,000 of qualifying income.
Estimated value: Exclusion of up to $20,000 of military retirement/SBP income from California taxable income
How to apply: Claim the exclusion on your California income tax return (FTB); see the Franchise Tax Board military filing guidance.