RETIREE TAX RELIEF
MARYLAND – Friday marked a big win for Maryland’s retirees, as Governor Larry Hogan signed a historic tax relief package into law.
Retiree Income Tax Credit
Among those bills is Senate Bill 405, which would provide a tax credit against the state’s retiree income tax. Retirees 65 years old and older that make up to $100,000 and couples making up to $150,000, are eligible. That works out to about $1,000 per individual, or $1,750 per couple.
A Decade In The Making
Bill sponsor State Senator Mary Beth Carozza says this is an effort eight years in the making. “We kept pressing, and I want to give Governor Hogan credit for this. He has been persistent in his leadership with sponsoring retiree tax relief and other tax relief measures for the past eight years,” she said.
In 2013, Sen. Carozza started visiting with the Lower Eastern Shore’s seniors to find out what was driving them out of Maryland. “They were very clear in their message. They made very clear that they want to live here in Maryland, they want to retire here, but we have to be more tax friendly,” she said. “They have options. They can go right to the north of us in Delaware, and live and retire there. Or, they can move south to Florida, which many, unfortunately, did over the years.”
Future Relief
The tax relief will go into effect in the 2022 tax year. Until then, Sen. Carozza says she now has her sights set up providing 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 assistance just to stay in business and pay their employees,” she said. “Now that they’ve reopened, and we’re on a little bit of a track, we need to make sure that they have that tax relief in the future, and some resources that will keep them in a strong position.”
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