Maryland2026Active
HB0002
Increase in Tax Break for Public Safety Retirement Income
Last scannedAug 22, 2026, 4:24 AM
In one sentence
This law raises the amount of retirement income that public safety workers can exclude from their Maryland state taxes to $20,000.
What it does
- Increases the tax subtraction limit for public safety retirement income from $15,000 to $20,000.
- Allows residents who are at least 55 years old by year-end to exclude this amount of income from their Maryland taxable income.
- Applies only to money received from an employee retirement system for work as a public safety worker.
- Sets the effective date for the change on July 1, 2026.
Who it affects
- Retired correctional officers employed by state or local facilities, juvenile facilities, or equivalent U.S. federal facilities.
- Retired law enforcement officers working for the United States, Maryland, or its subdivisions.
- Retired fire and rescue personnel from the United States, Maryland, or its subdivisions.
- Emergency medical technicians and paramedics who have retired.
Limits and unknowns
- The tax break only applies to the first $20,000 of retirement income from public safety work.
- Individuals must be at least 55 years old on December 31 of the taxable year to qualify for this subtraction.
Plain language
Terms to know
- Subtraction modification
- An amount of income that is removed before calculating how much state tax a person owes.
- Public safety employee
- A retired worker who served as a correctional officer, law enforcement officer, firefighter, rescue personnel, or emergency services personnel for the U.S., Maryland, or its subdivisions.
Official record
Sources
Official summary
Increasing, from $15,000 to $20,000, the amount allowed as a subtraction modification under the Maryland income tax for retirement income attributable to an individual's employment as a public safety employee; and applying the Act to all taxable years beginning after December 31, 2025.
Official activity
Bill history
- In the House - Hearing 1/20 at 1:00 p.m.