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

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0607*

SENATE BILL 607
Q3 6lr3121
CF HB 653
By: Senator McCray Senators McCray, Bailey, Corderman, Guzzone, Hettleman,
Jennings, and Salling
Introduced and read first time: February 5, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 4, 2026

CHAPTER ______

AN ACT concerning 1

Income Tax – Subtraction Modification for Public Safety Retirement Income – 2
Amount 3

FOR the purpose of phasing in, over a certain period of years, an increase in the amount 4
allowed as a subtraction modification under the Maryland income tax for certain 5
retirement income attributable to an individual’s employment as a certain public 6
safety employee; and generally relating to a subtraction modification under the 7
Maryland income tax for the retirement income of public safety employees. 8

BY repealing and reenacting, without amendments, 9
Article – Tax – General 10
Section 10–207(a) 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2025 Supplement) 13

BY repealing and reenacting, with amendments, 14
Article – Tax – General 15
Section 10–207(mm) 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2025 Supplement) 18

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20

2 SENATE BILL 607

Article – Tax – General 1

10–207. 2

(a) To the extent included in federal adjusted gross income, the amounts under 3
this section are subtracted from the federal adjusted gross income of a resident to determine 4
Maryland adjusted gross income. 5

(mm) (1) (i) In this subsection the following words have the meanings 6
indicated. 7

(ii) “Correctional officer” means an individual who: 8

1. was employed in: 9

A. a State correctional facility, as defined in § 1 –101 of the 10
Correctional Services Article; 11

B. a local correctional facility, as defined in § 1 –101 of the 12
Correctional Services Article; 13

C. a juvenile facility included in § 9 –226 of the Human 14
Services Article; or 15

D. a facility of the United States that is equivalent to a State 16
or local correctional facility or a juvenile facility included in § 9–226 of the Human Services 17
Article; and 18

2. is eligible to receive retirement income attributable to the 19
individual’s employment under item 1 of this subparagraph. 20

(iii) “Emergency services personnel” means emergency medical 21
technicians or paramedics. 22

(iv) “Employee retirement system” has the meaning stated under § 23
10–209(a) of this subtitle. 24

(v) “Public safety employee” means an individual who is a retired 25
correctional officer, law enforcement officer, or fire, rescue, or emergency services personnel 26
of the United States, the State, or a political subdivision of the State. 27

(2) [The] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE 28
subtraction under subsection (a) of this section includes [the first $15,000 of] income from 29
an employee retirement system that is attributable to service as a public safety employee , 30
if the income is received by an individual who is at least 55 years old on the last day of the 31
taxable year. 32

SENATE BILL 607 3

(3) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION 1
INCLUDES: 2

(I) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 3
2024, BUT BEFORE JANUARY 1, 2026, THE FIRST $15,000 OF INCOME DESCRIBED 4
UNDER PARAGRAPH (2) OF THIS SUBSECTION; 5

(II) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 6
2025, BUT BEFORE JANUARY 1, 2027, THE FIRST $16,000 OF INCOME DESCRIBED 7
UNDER PARAGRAPH (2) OF THIS SUBSECTION; 8

(III) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 9
2026, BUT BEFORE JANUARY 1, 2028, THE FIRST $17,000 OF INCOME DESCRIBED 10
UNDER PARAGRAPH (2) OF THIS SUBSECTION; 11

(IV) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 12
2027, BUT BEFORE JANUARY 1, 2029, THE FIRST $18,000 OF INCOME DESCRIBED 13
UNDER PARAGRAPH (2) OF THIS SUBSECTION; 14

(V) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 15
2028, BUT BEFORE JANUARY 1, 2030, THE FIRST $19,000 OF INCOME DESCRIBED 16
UNDER PARAGRAPH (2) OF THIS SUBSECTION; AND 17

(VI) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 18
2029, THE FIRST $20,000 OF INCOME DESCRIBED UNDER PARAGRAPH (2) OF THIS 19
SUBSECTION. 20

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
1, 2026. 22

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.