County Income Tax - Rate and Income Brackets - Alterations

SB 70 increases the maximum county income tax rate from 3.2% to 3.7% for Maryland counties that impose income tax. It limits counties to no more than eight income tax brackets and requires all counties to use standardized bracket thresholds: for individuals, brackets start at $0-$25,000 and go up to $1 million+; for joint filers, brackets start at $0-$50,000 and go up to $1.25 million+. Counties may apply rates above 3.2% only on income exceeding $250,000 for individuals or $300,000 for joint filers, with revenue from these higher rates required to fund public education and transportation. The bill affects all Maryland counties that levy a county income tax, directly changing how local income tax is calculated and collected.