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SB 30

Income Tax - Subtraction Modification - Public Safety Employee Retirement Income

2025 Regular Session Introduced by Jack Bailey

Maryland bill exempts public safety employee retirement income from state income tax, reducing retirees' tax burden while decreasing state revenue.

Hearing 1/15 at 10:30 a.m.
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WeVote Research Nonpartisan
Bill Summary · SB 30

Legislative bill overview

SB 30 modifies Maryland's income tax code to allow public safety employees (police officers, firefighters, correctional officers) to subtract a portion of their retirement income from taxable income. The bill creates a tax deduction specifically for pension and retirement benefits earned through public safety service, reducing the state income tax burden on these retirees.

Why is this important

Public safety employees often have physically demanding careers with higher injury and mortality rates, and many retire earlier than the general workforce. This tax modification could meaningfully increase take-home retirement income for thousands of Maryland retirees and may help the state attract and retain qualified public safety personnel. However, it also represents foregone state tax revenue that must be offset elsewhere or result in budget adjustments.

Potential points of contention

  • Revenue impact: The fiscal cost to Maryland's general fund is unclear without specific deduction amounts, which could strain state budgets if significant
  • Equity concerns: Creating tax preferences for one occupational group raises fairness questions about why public safety employees receive benefits unavailable to other state/local retirees or private sector workers
  • Definition scope: The bill's language regarding which employees qualify ("public safety") may be ambiguous—does it include corrections officers, emergency dispatchers, or only sworn personnel?

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

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