MarylandMaryland raises the tax subtraction for public safety retirees
Starting with the 2026 tax year, eligible Maryland public safety retirees age 55 or older can subtract more retirement income when calculating state income tax.
What it does
Eligible retirees may subtract up to $16,000 of qualifying income for the 2026 tax year. The cap rises by $1,000 each year, reaching $20,000 for 2030 and later tax years.
Argument forEligible retirees could owe less Maryland income tax because they can subtract more of their public safety retirement income.
Argument againstThe larger subtraction could reduce state tax revenue, leaving less money available for Maryland services.
More detail
Maryland allows eligible retirees to subtract more public safety retirement income when calculating state income tax. The retiree must be at least 55 on the last day of the tax year and have served as a correctional officer, law enforcement officer, or fire, rescue, or emergency services worker for the United States, Maryland, or a Maryland local government. The income must come from an employee retirement system and be tied to service as a public safety employee. The caps apply to tax years beginning in 2025 through 2029, then the $20,000 cap applies to tax years beginning in 2030 or later. The law takes effect July 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 26Approved by the Governor Wes Moore - Chapter 686Became Law
- Apr 13Returned Passed
- Apr 13Third Reading PassedPassed House
- Apr 11Second Reading Passed
- Apr 11Favorable AdoptedMinor
- Apr 11Motion Special Order until Next Session (Delegate Wilkins) Adopted
- Apr 11FavorableMinor
- Apr 11Favorable Report by Ways and MeansMinor
- Mar 31
- Vote recorded On Third Reading. Result: pass.Lower
- Mar 25Hearing 4/02 at 1:00 p.m.
- Mar 23Referred Ways and MeansMinor
- Mar 23Third Reading PassedPassed Senate
- Mar 20Second Reading Passed with Amendments
- Mar 20Favorable with Amendments {Minor
- Mar 20Motion Special Order until Later Today (Senator Guzzone) Adopted
- Mar 20Favorable with Amendments {Minor
- Mar 20Favorable with Amendments Report by Budget and TaxationMinor
- Mar 6
- Vote recorded On Third Reading. Result: pass.Upper
- Feb 11Hearing 2/18 at 1:00 p.m.
- Feb 5First Reading Budget and TaxationIntroduced
Taxes & Budget