No Tax on Bonuses Act of 2025

This bill would make enlistment and reenlistment bonuses for service members tax-free. It changes the tax code so these bonuses don’t count as “gross income,” meaning no federal income tax would be taken out of them. The change is tied to the section of law that already covers special pay for military members.

Key points:

• Who is affected: Members of the U.S. Armed Forces who receive enlistment or reenlistment bonuses.
• What changes: These bonuses would be excluded from taxable income (no federal income tax on them).
• When: The text provided does not state an effective date.