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Bill

HB 151

County Income Tax - Rate and Income Brackets - Alterations

2025 Regular Session Introduced by Julie Palakovich Carr

HB 151 modifies Maryland county income tax rates and brackets, giving counties flexibility to restructure local tax systems with uncertain revenue and equity impacts.

Hearing 1/30 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 151

Legislative bill overview

HB 151 proposes to alter Maryland's county income tax rates and income bracket structures. The bill would modify how counties can set their own income tax rates and potentially restructure the income brackets used to calculate county tax liability. This gives counties greater flexibility in designing their local tax systems.

Why is this important

County income taxes are a significant revenue source for Maryland's local governments, funding schools, infrastructure, and services. Changes to tax brackets and rates directly affect both individual taxpayer burden and county budgets. This bill could create disparities between counties or provide fiscal tools for counties facing budget pressures.

Potential points of contention

  • Revenue impact uncertainty: Unclear whether the rate/bracket changes would increase, decrease, or neutrally affect overall county tax collections, creating budget predictability concerns
  • Equity across counties: Allowing counties to independently alter brackets could create vastly different tax burdens for similar-income residents depending on location
  • Low-income household effects: Restructured brackets could shift tax burden toward middle and lower-income earners if not carefully designed, raising fairness questions

Compiled from official sources — confirm details with the bill’s official record.

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