Income Tax - Subtraction Modification for Public Safety Retirement Income - Amount, the official text

WES MOORE, Governor        Ch. 686

Chapter 686

                                        (Senate Bill 607)

AN ACT concerning

Income Tax – Subtraction Modification for Public Safety Retirement Income –
                                                      Amount

FOR the purpose of phasing in, over a certain period of years, an increase in the amount
         allowed as a subtraction modification under the Maryland income tax for certain
         retirement income attributable to an individual’s employment as a certain public
         safety employee; and generally relating to a subtraction modification under the
         Maryland income tax for the retirement income of public safety employees.

BY repealing and reenacting, without amendments,
         Article – Tax – General
         Section 10–207(a)
         Annotated Code of Maryland
         (2022 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, with amendments,
         Article – Tax – General
         Section 10–207(mm)
         Annotated Code of Maryland
         (2022 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                                        Article – Tax – General

10–207.

         (a) To the extent included in federal adjusted gross income, the amounts under
this section are subtracted from the federal adjusted gross income of a resident to determine
Maryland adjusted gross income.

         (mm) (1) (i)  In this subsection the following words have the meanings
indicated.

             (ii) “Correctional officer” means an individual who:

                       1. was employed in:

                                    A.  a State correctional facility, as defined in § 1–101 of the
Correctional Services Article;                        –1–
Ch. 686               2026 LAWS OF MARYLAND

                                    B. a local correctional facility, as defined in § 1–101 of the
Correctional Services Article;

                      C. a juvenile facility included in § 9–226 of the Human

Services Article; or

                                    D. a facility of the United States that is equivalent to a State
or local correctional facility or a juvenile facility included in § 9–226 of the Human Services
Article; and

                                    2. is eligible to receive retirement income attributable to the
individual’s employment under item 1 of this subparagraph.

                           (iii) “Emergency services personnel” means emergency medical
technicians or paramedics.

                           (iv) “Employee retirement system” has the meaning stated under §
10–209(a) of this subtitle.

                           (v) “Public safety employee” means an individual who is a retired
correctional officer, law enforcement officer, or fire, rescue, or emergency services personnel
of the United States, the State, or a political subdivision of the State.

                (2) [The] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, THE
subtraction under subsection (a) of this section includes [the first $15,000 of] income from
an employee retirement system that is attributable to service as a public safety employee,
if the income is received by an individual who is at least 55 years old on the last day of the
taxable year.

                (3) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES:

                         (I) FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER 31,
2024, BUT BEFORE JANUARY 1, 2026, THE FIRST $15,000 OF INCOME DESCRIBED
UNDER PARAGRAPH (2) OF THIS SUBSECTION;

                         (II) FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER 31,
2025, BUT BEFORE JANUARY 1, 2027, THE FIRST $16,000 OF INCOME DESCRIBED
UNDER PARAGRAPH (2) OF THIS SUBSECTION;

                         (III) FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER 31,
2026, BUT BEFORE JANUARY 1, 2028, THE FIRST $17,000 OF INCOME DESCRIBED
UNDER PARAGRAPH (2) OF THIS SUBSECTION;

                      –2–
WES MOORE, Governor  Ch. 686

                         (IV) FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER 31,
2027, BUT BEFORE JANUARY 1, 2029, THE FIRST $18,000 OF INCOME DESCRIBED
UNDER PARAGRAPH (2) OF THIS SUBSECTION;

                         (V) FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER 31,
2028, BUT BEFORE JANUARY 1, 2030, THE FIRST $19,000 OF INCOME DESCRIBED
UNDER PARAGRAPH (2) OF THIS SUBSECTION; AND

                         (VI) FOR A TAXABLE YEAR BEGINNING AFTER DECEMBER 31,
2029, THE FIRST $20,000 OF INCOME DESCRIBED UNDER PARAGRAPH (2) OF THIS
SUBSECTION.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.

Approved by the Governor, May 26, 2026.

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