Governor Hogan, Senate President Ferguson, and House Speaker Jones today announced that they have reached an agreement to provide $1.86 billion in tax relief over five years for Maryland retirees, small businesses, and low-income families.
According to the Governor’s press release, along with a one-time $800 million investment in the Blueprint for Maryland’s Future, this bipartisan tax relief agreement includes the following provisions for FY23-FY27:
- Tax Relief For Retirees 65 and older making up to $100,000 in retirement income, and married couples making up to $150,000 in retirement income. As a result, 80% of Maryland’s retirees will receive substantial relief or pay no state income taxes at all. ($1.55 billion)
- The Work Opportunity Tax Credit to incentivize employers and businesses to hire and retain workers from underserved communities that have faced significant barriers to employment. ($195 million)
- Family Budget Boosters: sales tax exemptions for child care products such as diapers, car seats, and baby bottles, and critical health products such as dental hygiene products, diabetic care products, and medical devices. ($115.6 million)
This agreement is the result of continued bipartisan discussion that included Department of Budget and Management Secretary David Brinkley, Senate Budget and Taxation Committee Chair Guy Guzzone, and House Appropriations Committee Chair Maggie McIntosh.
Governor Hogan, President Ferguson, and Speaker Jones will hold a bill signing ceremony later this week for these measures.
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