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The Office of GOVERNOR LARRY HOGAN

Tax Relief for Retirees

“As long as I am governor, I will continue to fight to make it easier for Maryland families, small businesses, and retirees to stay in our state, and to make it easier for all Marylanders to keep more of their hard-earned money.” -Governor Hogan

OUR PLAN

Retirement Tax Reduction Act of 2020
The Retirement Tax Reduction Act of 2020 will cut retirement taxes for Marylanders by more than $1 billion over five years. This legislation will eliminate all state tax on the first $50,000 of income for retirees making up to $100,000 in federally adjusted gross income. Retirees with Maryland income up to $50,000 will pay no state tax whatsoever in the state of Maryland. This tax reduction will be phased in over five years, beginning in FY22. This legislation will provide tax relief to 230,000 Marylanders and is the largest tax reduction in Maryland in more than two decades.

Over the last five years, Governor Hogan has led an historic economic turnaround, with the state going from losing 100,000 jobs prior to taking office to gaining 140,000 jobs. More businesses are open and more people are working than ever before in the history of the state. The governor has already delivered $1.25 billion in tax, toll, and fee relief for hardworking families, retirees, and small businesses.

Hometown Heroes Act of 2020
Governor Hogan will introduce the Hometown Heroes Act of 2020 to exempt retired law enforcement, fire, rescue, corrections, and emergency response personnel from state tax on all retirement income specific to their service in those professions.

This is the fifth year that Governor Hogan has introduced legislation to eliminate state taxes on the retirement income of first responders. In 2017, the governor was proud to enact the Hometown Heroes benefit so that first responders can exempt the first $15,000 of their retirement income from state taxes. This year, he is again pushing to fully exempt all retirement income for these occupations and to lower the age of eligibility from 55 to 50. 

Tax Relief for Military Retirees
Governor Hogan is again introducing legislation to eliminate all state taxes on retirement income received as a result of military service. Since taking office in 2015, Governor Hogan has taken numerous steps to fulfill his commitment to eliminate state income taxes on all retirement income. In 2015, the governor enacted legislation to increase the tax exemption on military retiree pensions from $5,000 to $10,000 for retirees 65 years or older, and in 2018, he again enacted legislation that increased the exemption by 50% to $15,000 and lowered the eligibility age to 55. He has also re-introduced the Hometown Heroes Act to provide tax relief for law enforcement and first responders.

 

OUR BILLS

(HB 342/SB 278) Retirement Tax Reduction Act of 2020
(HB 350/SB 269) Hometown Heroes Act of 2020
(HB 361/ SB 279) Income Tax – Subtraction Modification – Military Retirement Income


OUR RECORD
 

  • Worked to cut tolls, taxes, and fees five years in a row by over $1.25 billion 
  • Enacted legislation to increase the tax exemption on military retiree pensions from $5,000 to $10,000 for retirees 65 years or older in 2015, and in 2018, enacted legislation that increased the exemption by 50% to $15,000 and lowered the eligibility age to 55.
  • Enacted Hometown Heroes benefit so that first responders can exempt the first $15,000 of their retirement income from state taxes

 

LATEST NEWS

What They’re Saying About Governor Hogan’s Response to the Largest Tax Increase In State History
“The People of Maryland Are Not Going to Stand For That”: Governor Hogan on the Proposed Largest Tax Increase In State History
Governor Hogan Announces More Than $1 Billion in Tax Relief for Maryland Retirees
Photo Release: Governor Hogan Announces Military Initiatives at National Guard Armory
Law Enforcement Appreciation Day: Governor Hogan Announces Hometown Heroes Legislation, Urges Passage of Violent Crime Initiatives