Retire in Maryland Tax Relief Act

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0902*

HOUSE BILL 902
Q3 6lr3006
CF SB 382
By: Delegates Roberts, Harrison, Amprey, Boafo, Coley, Griffith, Hartman,
Healey, Holmes, A. Johnson, J. Long, Patterson, Pruski, Taylor, Toles,
Turner, and Woods
Introduced and read first time: February 5, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Retire in Maryland Tax Relief Act 2

FOR the purpose of authorizing a credit against the State income tax for certain taxpayers 3
who are at least a certain age; and generally relating to an income tax credit for 4
taxpayers who are at least a certain age. 5

BY adding to 6
Article – Tax – General 7
Section 10–754.1 8
Annotated Code of Maryland 9
(2022 Replacement Volume and 2025 Supplement) 10

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12

Article – Tax – General 13

10–754.1. 14

(A) IN THIS SECTION, “ELIGIBLE TAXPAYER” MEANS A RESIDENT WHO: 15

(1) ON THE LAST DAY OF T HE TAXABLE YEAR, IS AT LEAST 77 YEARS 16
OLD; AND 17

(2) HAS FEDERAL ADJUSTED GROSS INCOME NOT EXCEEDING: 18

(I) $175,000 FOR A TAXPAYER FILING AS AN INDIVIDUAL; OR 19

2 HOUSE BILL 902

(II) $250,000 FOR SPOUSES FILING A JOINT RETURN OR FOR A 1
SURVIVING SPOUSE OR HEAD OF HOUSEHOLD AS DEFINED IN § 2 OF THE INTERNAL 2
REVENUE CODE. 3

(B) (1) THIS SUBSECTION APPLIES TO AN ELIGIBLE TAXPAYER FILING AS 4
AN INDIVIDUAL OR AS A SURVIVING SPOUSE OR HEAD OF HOUSEHOLD AS DEFINED 5
IN § 2 OF THE INTERNAL REVENUE CODE. 6

(2) SUBJECT TO SUBSECTION S (D) AND (E) OF THIS SECTION , AN 7
ELIGIBLE TAXPAYER MAY CLAIM A CREDIT AGA INST THE STATE INCOME TAX IN AN 8
AMOUNT EQUAL TO: 9

(I) 25% OF THE STATE INCOME TAX FOR THE TAXABLE YEAR, IF 10
THE ELIGIBLE TAXPAYER IS 77 YEARS OLD ON THE LAST DAY OF THE TAXABLE YEAR; 11

(II) 50% OF THE STATE INCOME TAX FOR THE TAXABLE YEAR, IF 12
THE ELIGIBLE TAXPAYER IS 78 YEARS OLD ON THE LAST DAY OF THE TAXABLE YEAR; 13

(III) 75% OF THE STATE INCOME TAX FOR THE TAXABLE YEAR, IF 14
THE ELIGIBLE TAXPAYER IS 79 YEARS OLD ON THE LAST DAY OF THE TAXABLE YEAR; 15
AND 16

(IV) 100% OF THE STATE INCOME TAX FOR THE TAXABLE YEAR, 17
IF THE ELIGIBLE TAXP AYER IS AT LEAST 80 YEARS OLD ON THE LAS T DAY OF THE 18
TAXABLE YEAR. 19

(C) (1) THIS SUBSECTION APPLIES TO AN ELIGIBLE TAXPAYER FILING A 20
JOINT RETURN. 21

(2) SUBJECT TO SUBSECTION S (D) AND (E) OF THIS SECTION , AN 22
ELIGIBLE TAXPAYER MAY CLAIM A CREDIT AGA INST THE STATE INCOME TAX IN AN 23
AMOUNT EQUAL TO: 24

(I) 25% OF THE STATE INCOME TAX FOR AN ELIGIBLE 25
TAXPAYER, IF BOTH SPOUSES ARE AT LEAST 77 YEARS OLD ON THE LAST DAY OF THE 26
TAXABLE YEAR; 27

(II) 50% OF THE STATE INCOME TAX FOR THE TAXABLE YEAR, IF 28
BOTH SPOUSES ARE AT LEAST 78 YEARS OLD ON THE LAS T DAY OF THE TAXABLE 29
YEAR; 30

HOUSE BILL 902 3

(III) 75% OF THE STATE INCOME TAX FOR THE TAXABLE YEAR, IF 1
BOTH SPOUSES ARE AT LEAST 79 YEARS OLD ON THE LAS T DAY OF THE TAXABLE 2
YEAR; AND 3

(IV) 100% OF THE STATE INCOME TAX FOR THE TAXABLE YEAR, 4
IF BOTH SPOUSES ARE AT LEAST 80 YEARS OLD ON THE LAST DAY OF THE TAXABLE 5
YEAR. 6

(D) IF THE CREDIT ALLOWED UNDER THIS SECTION IN ANY TAXABLE YE AR 7
EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR, THE UNUSED AMOUNT 8
OF THE CREDIT MAY NOT BE CARRIED OVER TO ANY OTHER TAXABLE YEAR. 9

(E) AN ELIGIBLE TAXPAYER MAY NOT CLAIM A CRED IT UNDER THIS 10
SECTION IN ANY TA XABLE YEAR IN WHICH THE ELIGIBLE TAXPAYE R CLAIMS A 11
CREDIT UNDER § 10–754 OF THIS SUBTITLE. 12

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 14