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HB 653

Income Tax - Subtraction Modification for Public Safety Retirement Income - Amount

2026 Regular Session Introduced by Nick Allen and 15 co-sponsors

HB 653 adjusts Maryland's tax deduction for public safety worker retirement income, modifying how pensions and retirement benefits are taxed for police, firefighters, and related personnel.

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Bill Summary · HB 653

Legislative bill overview

HB 653 modifies Maryland's income tax code to adjust the subtraction allowance for public safety retirement income. The bill specifically targets tax treatment of pensions and retirement benefits received by individuals who worked in public safety roles. This represents a targeted tax policy change affecting a specific occupational group's retirement income taxation.

Why is this important

Public safety workers (police, firefighters, corrections officers) often have different retirement structures and benefit calculations than general state employees, making targeted tax policy relevant to their financial security in retirement. Tax treatment of retirement income directly affects take-home income for retirees and can influence recruitment and retention in public safety positions. The modification could either increase or decrease tax burden depending on whether the subtraction amount is being raised or lowered.

Potential points of contention

  • Cost to state revenue vs. worker benefits: Increasing the subtraction would reduce tax revenue; opponents may argue general taxpayers shouldn't subsidize public sector pensions while supporters may counter these workers accepted lower salaries in exchange for retirement security
  • Equity across retirement types: Changes to public safety retirement treatment raise questions about fairness relative to other state employees, military retirees, and private sector workers with different retirement arrangements
  • Fiscal sustainability: Maryland faces budget pressures, and expanding tax deductions requires offsetting revenue or spending cuts elsewhere in the budget

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

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