Bill
Bill > HB133
summary
Introduced
01/14/2026
01/14/2026
In Committee
01/14/2026
01/14/2026
Crossed Over
Passed
Dead
04/13/2026
04/13/2026
Introduced Session
2026 Regular Session
Bill Summary
Altering the State individual and corporate income tax rates; increasing, from 2% to 3%, the income tax rate imposed on the net capital gains attributable to certain sources of income; exempting from the income tax on net capital gains the first $10,000 in net capital gains of an individual who is at least 65 years old; reducing, from 6% to 3%, the sales and use tax rate; reducing, from 9% to 3%, the sales and use tax rate on alcohol and cannabis sales; repealing the sales and use tax on the sale of certain technology services; etc.
AI Summary
This bill makes significant changes to Maryland's tax laws, primarily by reducing income and sales tax rates and altering how certain income is taxed. For individuals and corporations, the state income tax rate is reduced to a flat 3% of taxable income. The bill also modifies the tax on net capital gains, which are profits from selling assets like stocks or real estate; it increases the additional tax rate on these gains to 3% but exempts the first $10,000 of net capital gains for individuals aged 65 and older. The general sales and use tax rate is reduced from 6% to 3%, and the rate on alcohol and cannabis sales is also lowered from 9% to 3%. Additionally, the sales and use tax is repealed for certain technology services, and the bill specifies that these changes will take effect starting July 1, 2026, applying to taxable years after December 31, 2025.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
House Ways and Means Hearing (13:00:00 2/5/2026 ) (on 02/05/2026)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0133?ys=2026RS |
| BillText | https://mgaleg.maryland.gov/2026RS/bills/hb/hb0133f.pdf |
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