MARYLAND — Friday marked a big win for Maryland retirees, as Governor Larry Hogan signed a historic tax relief package.
Retiree income tax credit
Among those bills is Senate Bill 405, which would provide an income tax credit for in-state retirees. Retirees 65 and older earning up to $100,000 and couples earning up to $150,000 are eligible. This equates to approximately $1,000 per person or $1,750 per couple.
A decade in the making
The bill’s sponsor, State Senator Mary Beth Carozza, said it was an eight-year effort. “We kept pushing, and I want to thank Governor Hogan for that. He has persisted in his leadership by sponsoring tax breaks for retirees and other tax relief measures for the past eight years,” she said.
In 2013, Senator Carozza began visiting seniors on the Lower East Coast to find out what was driving them to leave Maryland. “They were very clear in their message. They’ve been very clear that they want to live here in Maryland, they want to retire here, but we need to be more tax friendly,” she said. “They have options. They can go straight north of us to Delaware, live there and retire there. Or, they may move south to Florida, which many, unfortunately, have done over the years.
The tax relief will take effect beginning with the 2022 tax year. Until then, Senator Carozza said she now aims to provide more tax relief for small businesses. “We have to think about the long-term recovery from the pandemic. Many of these businesses were closed and they needed immediate help just to stay in business and pay their employees,” she said. “Now that they’ve reopened and we’re kind of on the right track, we need to make sure they get that tax relief going forward and some resources that will keep them in a strong position.”