Governor Larry Hogan Announces Tax Relief For Veterans
Joins With Secretary-Designee George Owings, Local Veterans To Support Military Retirement Income Tax Exemption
ANNAPOLIS, MD – Governor Larry Hogan joined Maryland Veterans Affairs Secretary-designee George Owings and local veterans to announce House Bill 482 – the Military Retirement Income Tax Exemption. The bill aims to eliminate income tax on all military retirement income, phasing in relief over a period of four years, providing for 25 percent relief in the first year, and rising to 100 percent in the final year.
“Making our state as welcoming and friendly as possible to military retirees is not only common sense but it’s simply the right thing to do,” said Governor Hogan. “After years of thousands of our citizens fleeing our state, this tax cut is the first step, among many to come, to ensuring that the people who spend their lives in service to others are given the support and tax relief they deserve.”
As announced in his State of the State address, House Bill 482 is representative of Governor Hogan’s goal to fully eliminate income taxes on all retirement income. This legislation also fulfills a commitment that the governor made to Maryland’s military retirees during his campaign, and is a significant testament of his administrations commitment to the men and women who have dedicated their professional lives to the defense, safety, and security of our nation.
“I am honored to join Governor Hogan today as he visits American Legion Post 136 in Greenbelt and demonstrates his commitment to our veterans,” said Secretary-designee George Owings. “Such an early visit to a Veterans Service Organization indicates the importance Governor Hogan places on our veterans.”
Under current Maryland law, military retirement income is subject to personal income tax with the first $5,000 being exempt. In 2013, there were over 54,251 military retirees in the state, of which 50,889 received pensions. Military pensions totaled over $1.4 billion or an average of $28,666 per person.
“The American Legion, Department of Maryland supports raising the tax exemption of military retired pay for Maryland residents over the coming years until such pay is completely exempt from State income taxes,” said Russell Myers, Jr., Department Adjutant, the American Legion, Department of Maryland. “Our organization supports all efforts to increase military retired pay exemption in Maryland.”
HB 482 can be viewed here.