Bill > SB99

This bill modifies Maryland's income tax law to increase the amount of military retirement income that can be subtracted from an individual's federal adjusted gross income when calculating Maryland state taxes. Specifically, 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, and certain commissioned corps. Under the new provisions, for tax years beginning after December 31, 2024, but before January 1, 2026, individuals can subtract the first $25,000 of military retirement income from their taxable income. Starting from tax years beginning after December 31, 2025, this subtraction amount increases to $40,000. This change aims to provide greater tax relief for military retirees in Maryland, making the state more financially attractive to veterans and potentially helping to retain or attract military personnel. The bill will take effect on July 1, 2025, giving taxpayers and state agencies time to prepare for the new tax provisions.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0099?ys=2025RS