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MD HB857

MD HB857
Income Tax - Subtraction Modification for Military Retirement Income - Individuals Under the Age of 55


summary

Introduced
02/04/2026
In Committee
02/04/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Increasing, from $12,500 to $20,000, the amount of a subtraction modification under the Maryland income tax for military retirement income for individuals who are under the age of 55 years; and applying the Act to all taxable years beginning after December 31, 2025.

AI Summary

This bill increases the amount of military retirement income that individuals under the age of 55 can subtract from their taxable income for Maryland state income tax purposes. Currently, those under 55 can subtract up to $12,500 of this income, but this bill proposes to raise that limit to $20,000. Military retirement income is defined as any retirement pay, including death benefits, received due to service in the armed forces, which encompasses various forms of military service and reserve components. This change is intended to provide greater tax relief to younger military retirees and will apply to all tax years beginning after December 31, 2025.

Committee Categories

Budget and Finance

Sponsors (25)

Last Action

House Ways and Means Hearing (13:00:00 2/19/2026 ) (on 02/19/2026)

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