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HB0857 • 2026

Income Tax - Subtraction Modification for Military Retirement Income - Individuals Under the Age of 55

Income Tax - Subtraction Modification for Military Retirement Income - Individuals Under the Age of 55

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Delegates Griffith , Rogers , Allen , Arentz , Baker , Boafo , Buckel , Ciliberti , Crutchfield , Hartman , Hornberger , Howard , D. Jones , Kipke , McComas , Miller , T. Morgan , Odom , Pruski , Reilly , Rose , Schmidt , Stinnett , Tomlinson , and Wims
Last action
2026-02-05
Official status
In the House - Hearing 2/19 at 1:00 p.m.
Effective date
2026-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Income Tax - Subtraction Modification for Military Retirement Income - Individuals Under the Age of 55

Increasing, from $12,500 to $20,000, the amount of a subtraction modification under the Maryland income tax for military retirement income for individuals who are under the age of 55 years; and applying the Act to all taxable years beginning after December 31, 2025.

What This Bill Does

  • Increasing, from $12,500 to $20,000, the amount of a subtraction modification under the Maryland income tax for military retirement income for individuals who are under the age of 55 years; and applying the Act to all taxable years beginning after December 31, 2025.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-02-05 House

    Hearing 2/19 at 1:00 p.m.

  2. 2026-02-04 House

    First Reading Ways and Means

  3. Maryland General Assembly

    Text - First - Income Tax - Subtraction Modification for Military Retirement Income - Individuals Under the Age of 55

Official Summary Text

Increasing, from $12,500 to $20,000, the amount of a subtraction modification under the Maryland income tax for military retirement income for individuals who are under the age of 55 years; and applying the Act to all taxable years beginning after December 31, 2025.

Current Bill Text

Read the full stored bill text 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0857*

HOUSE BILL 857
Q3 6lr1180
HB 800/25 – W&M
By: Delegates Griffith, Rogers, Allen, Arentz, Baker, Boafo , Buckel, Ciliberti,
Crutchfield, Hartman, Hornberger, Howard, D. Jones, Kipke, McComas,
Miller, T. Morgan, Odom, Pruski, Reilly, Rose, Schmidt, Stinnett,
Tomlinson, and Wims
Introduced and read first time: February 4, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Income Tax – Subtraction Modification for Military Retirement Income – 2
Individuals Under the Age of 55 3

FOR the purpose of increasing the amount of a subtraction modification under the 4
Maryland income tax for militar y retirement income for individuals who are under 5
a certain age; and generally relating to a subtraction modification under the 6
Maryland income tax for military retirement income. 7

BY repealing and reenacting, without amendments, 8
Article – Tax – General 9
Section 10–207(a) 10
Annotated Code of Maryland 11
(2022 Replacement Volume and 2025 Supplement) 12

BY repealing and reenacting, with amendments, 13
Article – Tax – General 14
Section 10–207(q) 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2025 Supplement) 17

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19

Article – Tax – General 20

10–207. 21

(a) To the extent included in federal adjusted gross income, the amounts under 22
2 HOUSE BILL 857

this section are subtracted from the federal adjusted gross income of a resident to determine 1
Maryland adjusted gross income. 2

(q) (1) (i) In this subsection the following words have the meanings 3
indicated. 4

(ii) “Armed forces” has the meaning stated in § 9 –901 of the State 5
Government Article. 6

(iii) “Military retirement income” means retirement income, 7
including death benefits, received as a result of military service. 8

(iv) “Military service” means: 9

1. induction into the armed forces for training and service 10
under the Selective Training and Service Act of 1940 or a subsequent act of a similar 11
nature; 12

2. membership in a reserve component; 13

3. membership in an active component of the armed forces; 14
or 15

4. active duty with the commissioned corps of th e Public 16
Health Service, the National Oceanic and Atmospheric Administration, or the Coast and 17
Geodetic Survey. 18

(2) The subtraction under subsection (a) of this section includes[: 19

(i) if, on the last day of the taxable year, the individual is under the 20
age of 55 years, the first $12,500 of military retirement income received by an individual 21
during the taxable year; and 22

(ii) if, on the last day of the taxable year, the individual is at least 55 23
years old,] the first $20,000 of military retirement income received by an individual during 24
the taxable year. 25

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 26
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 27