Governor Announces More Than $1 Billion Tax Relief Aimed to Keep Retirees in Maryland
On January 16, 2020, the Maryland Governor’s Office issued a news release reporting that Maryland Governor Larry Hogan announced the proposed Retirement Tax Reduction Act of 2020 (Act).The Act would provide significant tax relief for Maryland retirees in order to make it more affordable for them to remain in Maryland. The news release quotes Governor Hogan as saying:
People who have been lifelong Marylanders and have contributed so much, and still have more to offer, are moving to other states for one reason-our state’s sky-high retirement taxes.
If passed, the Act would cut retirement taxes by more than $1 billion over five years and would be the biggest tax reduction for Marylanders in over two decades. Specifically, according to the news release, the Act would: (1) eliminate all state tax on the first $50,000 of income for retirees earning up to $100,000 in federally adjusted gross income, and (2) eliminate all state tax for retirees with Maryland income $50,000 or less. The news release clarified that the reduction would be phased in over a five-year period beginning in fiscal year 2022.
Additionally, the news release noted that although Governor Hogan has already led “an historic economic turnaround,” a recent survey indicated that Maryland is the worst state for retirees-ranking Maryland near the bottom in affordability.
Finally, the news release reminded readers that the governor has also: (1) introduced the Hometown Heroes Act 2020 which would provide tax relief for police, firefighters, and first responders,and (2) proposed eliminating all state taxes on retirement income received from military services.
If you have tax questions or concerns call Frost Law today at 410-497-5947.
Md. Governor’s Office, News Release, 01/16/20.
You can read more about the Hometown Heroes Act of 2020 at: https://www.districtofcolumbiataxattorney.com/blog/2020/01/maryland-governor-proposes-tax-relief-for-police-firefighters-and-first-responders.shtml.