Budget & Taxes

passed · Maryland · House of Delegates Apr 10, 2026

HB 694: Income Tax - Addition Modification for Federal Tax-Exempt Income - Study

HB 694 modifies Maryland's income tax calculation by excluding certain foreign earned income from the state tax addition. Specifically, it removes the requirement to include income exempt from federal tax under IRS Section 911 (for overseas workers) when calculating Maryland adjusted gross income. This change directly affects Maryland residents who work abroad and qualify for the federal foreign earned income exclusion. The bill takes effect July 1, 2026, for tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes federal tax-exempt foreign income from MD tax calculation, reducing tax burden for overseas workers per IRS Section 911.95% confidence

Sub-Topics Income Tax

Track

signed · Maryland · Senate Apr 28, 2026

SB 403: Sales and Use Tax - Elementary or Secondary School Book Fairs - Exemption

SB 403 exempts sales tax on in-person book fairs held at Maryland elementary and secondary schools. It applies to sales by schools, parent-teacher organizations (PTOs), or other nonprofit groups operating these events on school premises. The exemption covers sales where students, staff, or PTO members act as agents for vendors, with all net proceeds used solely for the school's educational benefit. This bill adds a new tax exemption provision (Section 11-204(b)(9)) to Maryland’s tax code, effective July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts sales tax on school book fairs, providing tax relief for educational programs and increasing net proceeds for schools per tax code amendment.95% confidence ✓ EducationSupports EducationExempts sales tax on school book fairs, increasing net proceeds for educational programs without direct state funding.95% confidence

Sub-Topics Sales Tax Tax Incentives K-12 Education Teachers

in committee · Maryland · House of Delegates Jan 29, 2026

HB 602: Baltimore County - Transfer Tax - Exemption for First-Time Home Buyers

HB 602 exempts first-time home buyers in Baltimore County from the county's transfer tax when purchasing improved residential property they will occupy as their primary residence. It directly affects individuals who have never owned residential property in Maryland that served as their principal residence before. To qualify, buyers (or their agents) must provide a sworn statement confirming their first-time buyer status and intent to live in the property as their primary home. The exemption takes effect July 1, 2026, and applies to property transfers meeting these specific criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts first-time homebuyers from transfer tax, providing tax relief for lower-income residents. Directly reduces tax burden for qualifying individuals under budget/tax policy.95% confidence ✓ HousingSupports HousingExempts first-time buyers from transfer tax, reducing upfront costs for homeownership and increasing affordability for primary residences.95% confidence

Sub-Topics Procurement Homeownership

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in committee · Maryland · House of Delegates Jan 29, 2026

HB 507: Qualifying Nonprofit Organizations - Incarcerated Individual Training and Reentry Grant Fund - Extension

HB 507 extends the funding period for a grant program supporting nonprofit organizations that provide automotive repair training and reentry services to incarcerated and formerly incarcerated individuals. The bill allows the Governor to appropriate $1 million annually from fiscal years 2026 through 2029 (previously ending in 2028) for qualifying nonprofits that train at least 50 people yearly, provide nationally recognized automotive repair certificates, and achieve a 50% job placement rate for participants. These organizations must report on fund usage, participant numbers, and employment outcomes to the Governor’s Office of Crime Prevention. The extension ensures continued access to job training and employment opportunities for formerly incarcerated individuals in Maryland.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends annual $1M appropriation for nonprofit reentry programs, advancing state funding for public services.90% confidence ✓ Criminal JusticeSupports Criminal JusticeExtends $1M annual funding for nonprofits providing automotive repair training/reentry services to incarcerated individuals, aiming to reduce recidivism via job placement and certification programs.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExtends $1M annual funding for job training/reentry programs requiring 50% job placement, directly advancing employment outcomes for formerly incarcerated workers.90% confidence

Sub-Topics Probation & Parole Workforce Development

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in committee · Maryland · Senate Jan 15, 2026

SB 211: Maryland Estate Tax - Repeal

SB 211 would repeal Maryland's estate tax by removing specific sections of the state tax code, including provisions governing estate tax calculations and revenue distribution. This bill directly affects Maryland residents who inherit property from deceased individuals, as it would eliminate the tax obligation on estates exceeding the current threshold. Key provisions include repealing Sections 2-801 and 2-802, the "Subtitle 8" revenue distribution section, and all sections under "Subtitle 3" (7-301 through 7-309) of the Maryland Tax Code. The repeal would take effect July 1, 2026, applying to individuals who die after June 30, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRepeals Maryland's estate tax, directly eliminating a state tax revenue source and reducing tax obligations for estates, weakening fiscal policy related to taxation.95% confidence

Track

in committee · Maryland · House of Delegates Jan 22, 2026

HB 411: Income Tax - Standard Deduction - Alteration

HB 411 increases Maryland's standard income tax deduction amounts for 2026 and beyond. It raises the standard deduction to $4,100 for single filers (from $3,350), $8,200 for heads of household or surviving spouses (from $6,700), and $8,200 for married couples filing jointly (from $6,700). The bill also establishes an automatic annual cost-of-living adjustment starting in 2026, tying future increases to inflation as measured by the IRS formula. This directly affects Maryland residents who claim the standard deduction instead of itemizing deductions on their state tax returns.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases standard income tax deductions for all filer types, providing tax relief for middle/lower-income residents and tying future increases to inflation.95% confidence

Sub-Topics Income Tax

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in committee · Maryland · House of Delegates Feb 3, 2026

HB 652: Property Tax - Homestead Property Tax Credit - First-Time Homebuyer

HB 652 creates a property tax credit for first-time homebuyers in Maryland. It defines a "first-time homebuyer" as a Maryland resident who has never owned a dwelling in any state. The bill changes how the taxable assessment is calculated for this credit: for the first year a first-time homebuyer owns a home, the credit uses the previous owner's assessment (adjusted for revaluation) instead of the new owner's current assessment. This directly affects eligible first-time homebuyers by lowering their initial property tax burden. The change applies to all taxable years beginning after June 30, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax relief for first-time homebuyers by lowering taxable assessment via credit, aligning with tax relief for middle-income residents.95% confidence ✓ HousingSupports HousingCreates property tax credit for first-time homebuyers, lowering costs to advance affordable housing access by reducing initial ownership expenses.90% confidence

Sub-Topics Property Tax Tax Credits Homeownership Property Taxes

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in committee · Maryland · House of Delegates Feb 3, 2026

HB 690: Corporate Income Tax - Rate Reduction (Economic Competitiveness Act of 2026)

HB 690, the "Economic Competitiveness Act of 2026," lowers Maryland's corporate income tax rate gradually over several years. It directly affects corporations doing business in Maryland that pay state corporate income tax. The bill reduces the rate from 8.25% (for tax years 2026-2027) to 7.75% (2027-2028), then to 7.25% (2028-2029), 6.75% (2029-2030), and finally to 6.25% starting in 2030. The changes take effect July 1, 2026, as specified in the bill's provisions.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill reduces corporate tax rates from 8.25% to 6.25%, decreasing state revenue and weakening the tax base for public funding.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Maryland · Senate Jan 15, 2026

SB 122: State Department of Assessments and Taxation - Local Reimbursement for Administration Costs - Alterations

SB 122 modifies how Maryland counties and Baltimore City reimburse the State Department of Assessments and Taxation for administrative costs. It requires these local jurisdictions to pay 90% of costs for real property valuation, business personal property valuation, and related IT services (instead of 50% for 2012-2013 as previously noted), with payments calculated based on property accounts or business property value. Reimbursements must be paid quarterly (50% by October 1, 25% each January 1 and April 1), and late payments may trigger withholding of local income tax distributions. The changes take effect June 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases state revenue from local reimbursements by raising rate from 50% to 90% for property valuation costs, strengthening budget management.95% confidence

Sub-Topics Income Tax Property Tax

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signed · Maryland · Senate Apr 14, 2026

SB 344: Property Tax - Agricultural Use Assessment - Community Solar Energy Generating Systems

SB 344 extends the deadline for community solar energy systems to receive Public Service Commission approval, allowing land used by these systems to qualify for agricultural property tax assessment. Specifically, it changes the requirement from approval "on or before December 31, 2025" to "on or before December 31, 2030" for systems placed in service after June 30, 2022. This directly affects community solar developers and landowners seeking agricultural tax treatment for solar installations. The bill amends Maryland's property tax code to maintain eligibility for agricultural assessment without altering the core criteria for qualifying land use. The change takes effect June 1, 2026, applying to all taxable years beginning after June 30, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends agricultural tax assessment for solar systems, providing property tax relief to developers/landowners by lowering their tax burden.85% confidence ✓ EnergySupports EnergyExtends deadline for community solar systems to qualify for agricultural tax assessment, directly promoting renewable energy development and infrastructure expansion.95% confidence

Sub-Topics Property Tax Solar Utility Regulation