Income Tax – Individual Itemized Deductions – Alterations

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0926*

HOUSE BILL 926
Q3 6lr3442

By: Delegates Ruth, Ebersole, Fair, Forbes, Lehman, McCaskill, Pasteur, Terrasa,
and White Holland
Introduced and read first time: February 5, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Income Tax – Individual Itemized Deductions – Alterations 2

FOR the purpose of requiring, for certain taxable years, that certain individuals reduce 3
their federal itemized deduction for purposes of determining their Maryland 4
itemized deductions by the amount claimed as taxes paid on real property; and 5
generally relating to deductions allowed for Maryland income tax purposes. 6

BY repealing and reenacting, with amendments, 7
Article – Tax – General 8
Section 10–218 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Tax – General 14

10–218. 15

(a) Only an individual who itemizes deductions on the individual’s federal income 16
tax return may elect to itemize deductions on the individual’s income tax return. 17

(b) Subject to subsection (c) of this section, an individual who elects to itemize 18
deductions is allowed as a deduction the sum of the individual’s federal itemized 19
deductions: 20

(1) limited and reduced as required under the Internal Revenue Code; 21

2 HOUSE BILL 926

(2) further reduced by any amount deducted under § 170 of the Internal 1
Revenue Code for contributions of a preservation or conservation easement for which a 2
credit is claimed under § 10–723 of this title; [and] 3

(3) further reduced by the amount claimed as taxes on income paid to a 4
state or political subdivision of a state, after subtracting a pro rata portion of the reduction 5
to itemized deductions required under § 68 of the Internal Revenue Code; AND 6

(4) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2024, 7
BUT BEFORE JANUARY 1, 2030, FURTHER REDUCED BY AN AMOUNT EQUAL TO THE 8
LESSER OF: 9

(I) THE AMOUNT CLAIMED AS TAXES ON REAL PROPERTY PAID 10
TO A STATE OR POLITICAL SUBDIVISION OF A STATE; OR 11

(II) $10,000. 12

(c) (1) In this subsection, “applicable amount” means: 13

(i) $100,000 for a married individual filing separately; and 14

(ii) $200,000 for all other filers. 15

(2) This subsection does not apply to a fiduciary. 16

(3) In the case of an individual whose federal adjusted gross income 17
exceeds the applicable amount, the amount of itemized deductions otherwise allowable for 18
a taxable year shall be reduced by 7.5% of the excess of the federal adjusted gross income 19
over the applicable amount. 20

(4) This subsection shall be ap plied after the application of any other 21
limitation on the allowance of any itemized deduction. 22

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
1, 2026. 24