Budget & Taxes (Income Tax)

in committee · Maryland · House of Delegates Feb 5, 2026

HB 761: Income Tax - Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act)

HB 761 modifies Maryland's income tax code to increase the tax break for military retirees. It removes the age requirement for the full tax deduction on military retirement income, raising the deduction from $12,500 (under 55) or $20,000 (55+) to $25,000 for 2026-2026 and $40,000 starting in 2027. This directly affects Maryland residents who receive military retirement income from active or reserve service, including death benefits. The bill amends Section 10-207(q) of Maryland’s tax code to apply the higher deduction regardless of the retiree’s age. The change takes effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for military retirees, providing tax relief under Maryland's income tax code by raising deduction amounts.95% confidence ✓ VeteransSupports VeteransIncreases tax deduction for military retirees from $12.5K/$20K to $25K/$40K, expanding financial benefits for veterans95% confidence

Sub-Topics Income Tax Tax Incentives National Guard & Reserve

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passed · Maryland · House of Delegates Apr 13, 2026

HB 1297: Income Tax - Student Loan Debt Relief Tax Credit - Alterations

HB 1297 modifies Maryland's student loan debt relief tax credit by changing how unused credit amounts are recaptured. It requires taxpayers to repay only the unused portion of the credit (not the full amount) if they don't use it for student loan repayment within 3 years. The bill also authorizes the Maryland Higher Education Commission to grant extensions of this 3-year period for taxpayers unable to repay due to specific federal delays, such as litigation over the SAVE repayment plan, Department of Education understaffing, or waiting for public service loan forgiveness. This directly affects Maryland residents with qualifying student loan debt who claim the tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax credit to reduce repayment burden on unused portions, providing targeted tax relief for student loan borrowers92% confidence ✓ EducationSupports EducationModifies student loan tax credit to reduce recapture burden and allow extensions, supporting higher education affordability and access for borrowers.90% confidence

Sub-Topics Income Tax Tax Credits Student Financial Aid

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in committee · Maryland · Senate Feb 11, 2026

SB 882: Income Tax - Credit for Student Loan Debt of Educators Working in Public Schools

SB 882 creates a state income tax credit for educators working full-time in Maryland public primary or secondary schools who have outstanding student loan debt. Eligible individuals must participate in the state's Career Ladder teaching program and certify they will use the credit for student loan repayment. The credit is claimed annually through the Maryland Higher Education Commission, with a $5 million annual cap, and paid out over five years (one-fifth each year). Recipients must verify continued employment in public schools and use the credit for loan repayment within three years, or repay the amount to the state if they fail to comply.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for public school educators, providing targeted tax relief for middle-income educators in essential public services, aligning with fiscal support for workforce retention.90% confidence ✓ EducationSupports EducationProvides tax credit to reduce educators' student loan debt, directly supporting teachers financially and retaining staff in public schools per bill's intent.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit for educator student debt, reducing financial barriers for public school workers and supporting workforce retention in education.65% confidence

Sub-Topics Income Tax Tax Credits Student Financial Aid Teachers

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in committee · Maryland · House of Delegates Jan 15, 2026

HB 201: Income Tax - Tips or Gratuities - Subtraction Modification (No Income Taxes on Tips Act)

HB 201 exempts tips and gratuities from Maryland state income tax for workers in specific service industries. It directly affects employees in food service, hotels, limousine services, passenger-for-hire transportation, and taxicab services. The bill modifies Maryland tax law to exclude tips received in these roles from taxable income calculations. This change takes effect for tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts service workers' tips from state income tax, providing direct tax relief for lower-income earners in targeted industries per bill's explicit modification of tax law.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts tips from state tax, increasing net earnings for service workers in affected industries, directly strengthening worker compensation.95% confidence

Sub-Topics Income Tax

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in committee · Maryland · House of Delegates Jan 23, 2026

HB 484: Corporate Income Tax - Addition Modification - Direct-to-Consumer Pharmaceutical Advertising

HB 484 modifies Maryland's corporate income tax code to disallow deductions for certain direct-to-consumer (DTC) pharmaceutical advertising expenses that are deductible under federal law. It specifically targets expenses paid by "covered entities" (pharmaceutical sponsors or companies owning drug outsourcing facilities) for advertising "covered drugs" (prescription drugs under federal law) to the general public via media like TV, radio, social media, or digital platforms. The bill requires these expenses - already deducted federally - to be added back to Maryland taxable income, effectively eliminating the state tax deduction for such advertising. This change applies to taxable years beginning after December 31, 2025, and directly affects pharmaceutical companies engaging in DTC advertising for covered drugs.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole by disallowing corporate deductions for pharmaceutical advertising, increasing tax revenue per fiscal responsibility indicators.90% confidence

Sub-Topics Business Taxes Income Tax

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passed · Maryland · House of Delegates Mar 20, 2026

HB 628: Human Services - Foster Care Transition Grant Program - Establishment

HB 628 establishes a program providing $1,000 monthly payments for three years to young adults who were in out-of-home care (like foster care) on their 18th birthday, with birthdays on or after October 1, 2026. Payments cannot be counted as income for Medicaid, the Maryland Earned Income Tax Credit, or state/federal financial aid for education. The Department of Human Services must report annually on participants' income, location, employment, and housing status starting October 2027. The program will run from October 1, 2026, through September 30, 2031, with automatic termination after that date.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes state-funded program ($1,000/month for 3 years) for foster youth, increasing government spending on social services. Payments excluded from income for tax credits, supporting fiscal management.95% confidence ✓ HealthcareSupports HealthcarePrevents basic income from affecting Medicaid eligibility, maintaining healthcare coverage access for foster youth transitioning to adulthood.90% confidence

Sub-Topics Income Tax Tax Credits Long-Term Care Medicaid

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signed · Maryland · Senate Apr 14, 2026

SB 440: Income Tax - Theatrical Production Tax Credit - Alterations and Sunset Extension

SB 440 extends the expiration date of Maryland's theatrical production tax credit from 2027 to 2032. This credit allows theater producers to claim a refundable tax credit against state income tax for qualifying production costs within the state. The bill amends existing law (Chapter 258 and 259 of the 2022 Acts) to change the sunset date from June 30, 2027, to June 30, 2032, without requiring further legislative action. It directly affects theater companies and productions that meet the credit's eligibility criteria in Maryland.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends refundable tax credit for theater producers, providing tax relief and maintaining fiscal support for arts industry without increasing state revenue impact.95% confidence

Sub-Topics Income Tax Tax Credits

signed · Maryland · Senate Apr 14, 2026

SB 262: Income Tax - Subtraction Modification for Classroom Supplies Purchased by Teachers - Alteration

SB 262 expands Maryland's income tax deduction for teachers by adding prekindergarten teachers to the list of eligible educators who can deduct up to $250 annually for unreimbursed classroom supply expenses. The bill amends tax code sections to include prekindergarten classroom teachers employed full-time in state programs as "eligible teachers," alongside existing K-12 teachers. This deduction applies only to supplies used by students or for teaching preparation, and excludes expenses already deducted federally. The change takes effect for taxable years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax deduction for teachers, providing tax relief to middle-income educators via $250 annual classroom supply deduction.95% confidence ✓ EducationSupports EducationExpands tax deduction for teachers to include prekindergarten educators, providing financial relief for classroom supplies. Directly supports educators through tax benefit expansion.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands tax deduction for teachers' unreimbursed classroom supplies, enhancing financial support for educators as part of employment benefits.90% confidence

Sub-Topics Income Tax K-12 Education Teachers

signed · Maryland · Senate Apr 28, 2026

SB 163: Income Tax - Addition Modification for Federal Tax-Exempt Income - Study

SB 163 modifies Maryland's income tax calculation by removing a requirement to include certain foreign earned income in taxable income. It specifically exempts income that qualifies for exclusion under federal law (IRS Section 911), such as earnings from work abroad that are already excluded from federal taxes but would otherwise be added to Maryland taxable income. This change directly affects Maryland residents earning qualifying foreign income who currently face state taxation on that income. The bill amends Maryland tax code sections 10-204(a) and 10-204(c)(1)(I) and takes effect for taxable years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts federally tax-exempt foreign income from state tax, reducing tax burden for residents earning abroad.95% confidence

Sub-Topics Income Tax

in committee · Maryland · House of Delegates Jan 15, 2026

HB 124: Income Tax - Subtraction Modification - Losses From Theft or Fraud

HB 124 allows Maryland taxpayers to subtract certain personal casualty losses from their state income tax if those losses involve theft or fraud targeting retirement plan assets. It specifically applies to losses that were deductible under federal tax law before 2018, requiring taxpayers to attach documentation proving the theft/fraud occurred and that the assets were retirement plan property. The bill prevents double-deduction by reducing the state subtraction if the taxpayer already claimed a federal deduction for the same loss. This change affects Maryland residents who lost retirement savings due to theft or fraud schemes, effective for tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by allowing taxpayers to subtract theft/fraud losses from state income tax, aligning with federal deductibility rules for retirement assets.92% confidence

Sub-Topics Income Tax

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