Thatcher proposes making retirement easier for veterans

State Senators Kim Thatcher (R- Keizer) and Janeen Sollman (D-Hillsboro) announced on Nov. 29 they will champion a bill in 2024 to honor veterans’ service and make Oregon more affordable for them by allowing veterans to keep more of their retirement pay through a state income tax exemption.

“For many veterans, Oregon is an expensive place to retire,” said Senator Thatcher. “We should prioritize improving the lives of Oregon military retirees, recognizing the vital work they have done and the selfless sacrifices they have made.”

Affordable housing has been the crux to many issues found in Oregon, from mental health, drug use as well as homelessness. The median price for a home in Marion County is around $475K with the median price in Oregon at around $490K. 

Currently, veterans who served prior to 1991 can subtract military retired pay from their Oregon income taxes, but as our population ages, that applies to less people over time. 

The Senators’ proposal will close this loophole by exempting up to $17,500 of a veteran’s military pension from state income tax for veterans under the age of 62 and will include a yearly cost of living increase.