Bill > HB800

This bill modifies Maryland's income tax law to increase the subtraction modification for military retirement income for individuals under the age of 55, raising the amount from $12,500 to $20,000. 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 commissioned corps like the Public Health Service. Currently, individuals under 55 years old can subtract up to $12,500 of military retirement income from their federal adjusted gross income when calculating their Maryland adjusted gross income. The bill eliminates the age-based distinction and allows all individuals to subtract up to $20,000 of military retirement income, regardless of their age. The changes will take effect on July 1, 2025, and will apply to all taxable years beginning after December 31, 2024, providing a tax benefit to military retirees and potentially making Maryland more attractive to veterans and active military personnel.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0800?ys=2025RS