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SB 759

Income Tax - Subtraction Modification - Public Safety Employee Retirement Income

2025 Regular Session Introduced by Cheryl Kagan

Maryland bill exempts public safety employee retirement income from state income tax to support retired police, firefighters, and corrections officers.

Referred Rules and Executive Nominations
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Bill Summary · SB 759

Legislative bill overview

SB 759 modifies Maryland's income tax code to allow public safety employees (police, firefighters, corrections officers) to exclude a portion of their retirement income from state income taxation. The bill creates a tax subtraction for qualified pension and retirement income earned by these public servants after they leave service.

Why is this important

Public safety employees often face physical and mental demands that can lead to early retirement or disability. This tax benefit reduces the financial burden on retired public safety workers and their families, potentially improving recruitment and retention in critical workforce positions. It also reflects policy recognition that these workers contribute significantly to public safety.

Potential points of contention

  • Fiscal impact: The bill reduces state tax revenue, requiring offsetting revenue sources or budget adjustments during tight fiscal periods
  • Equity concerns: Creating tax benefits for one occupational group may raise fairness questions from other public employees (teachers, social workers) not included in the exemption
  • Definition scope: Disputes may arise over which positions qualify as "public safety employees" and whether all relevant roles are properly included or excluded

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

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