ANNAPOLIS, Md. — There’s an effort to make it more affordable for retirees to stay in Maryland.
Governor Larry Hogan announced a more than $1-billion tax relief proposal.
The Retirement Tax Reduction Act of 2020 would lower taxes for more than 230,000 Marylanders over 5 years. The act eliminates all state tax on the first $50,000 of income for retirees making up to $100,000.
Retirees with Maryland income up to $50,000 will pay no state tax. This is the biggest tax reduction in more than two decades.
"People who have lifelong Marylander’s, who have contributed so much and still have so much to offer are moving to other states for one simple reason, our state's sky-high retirement taxes," said Governor Hogan
The tax reduction will be phased in over five years, beginning in 2022.