No Tax on Drill Pay Act

The No Tax on Drill Pay Act would amend the Internal Revenue Code to exclude compensation received for inactive-duty training from federal income taxation. This would apply to National Guard and Reserve members who currently must pay federal income taxes on pay earned during drill weekends and other training activities.

Under current law, National Guardsmen and Reservists pay federal income taxes on compensation for inactive-duty training, which typically includes one weekend of training per month plus additional readiness activities throughout the year. The bill aims to provide tax relief to these citizen-soldiers and airmen, allowing them to keep more of their earned income. Supporters argue this change would help recruit and retain military personnel, recognize their service, and reduce financial strain on Guard and Reserve families who balance military duties with civilian careers and responsibilities.

The bill was introduced in March 2026 and has been referred to the House Committee on Ways and Means. As with most introduced bills, it faces an uncertain path forward and would require committee approval and full congressional passage before becoming law.