Bill > HB60

This bill modifies Maryland's income tax law to provide a more generous tax subtraction for military retirement income. Currently, individuals under 55 years old can subtract up to $12,500 of military retirement income, and those 55 and older can subtract up to $20,000. The bill replaces this existing provision with a phased increase: for tax years beginning after December 31, 2024, but before January 1, 2026, individuals can subtract the first $25,000 of military retirement income, and for tax years beginning after December 31, 2025, individuals can subtract the first $40,000 of military retirement income. The bill defines "military retirement income" as retirement income or death benefits received as a result of military service, which includes various forms of military service such as active duty, reserve components, National Guard membership, and service in specific commissioned corps. The purpose appears to be to provide additional tax relief for military retirees by increasing the amount of retirement income that can be subtracted from state income taxes. The bill will take effect on July 1, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0060?ys=2025RS