Bill > HB1238

This bill establishes a new "Ultra-High-Net-Worth Individual Surtax" and a one-time "Wealth Tax" in Maryland. The surtax will be an additional tax on the Maryland taxable income of individuals whose worldwide net worth exceeds $1 billion on the last day of the tax year, with the rate determined by comparing their effective income tax rate to the median effective income tax rate paid by all Maryland residents. The bill also imposes a one-time wealth tax on Maryland residents with a net worth exceeding $1 billion on a designated valuation date, with tax rates increasing based on higher net worth thresholds, and allows for installment payments over five years. Revenue generated from both taxes will be directed to the Maryland Strategic Investment and Stabilization Fund, which is intended to reduce the state's structural budget deficit and offset reductions in federal funding, but can also be used for education, behavioral health, affordable housing, climate-resilient infrastructure, and small business grants if not needed for its primary purpose. The surtax provisions take effect for taxable years beginning after December 31, 2027, while the one-time wealth tax will be in effect for six years, expiring on June 30, 2032.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1238?ys=2026RS