Bill > SB836

This bill gradually reduces Maryland's corporate income tax rate from 8.25% to 6.25% over a five-year period, beginning with the 2025 tax year. Specifically, the corporate tax rate will decrease incrementally each year: 8.25% for the 2025 tax year, 7.75% for the 2026 tax year, 7.25% for the 2027 tax year, 6.75% for the 2028 tax year, and finally settling at 6.25% for the 2029 tax year and beyond. The purpose of this gradual reduction, as suggested by the bill's title (Economic Competitiveness Act of 2025), is likely to make Maryland more attractive to businesses by lowering the state's corporate tax burden. The bill will take effect on July 1, 2025, which means the first reduced tax rate will apply to corporate income for the tax year beginning after December 31, 2024. This phased approach allows businesses and state financial planners to anticipate and adjust to the changing tax rate over time.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0836?ys=2025RS