Annapolis, MD – March 7, 2020 – On Friday, Delegate Susan Krebs (R-Carroll) presented HB 1358 before the House Ways and Means Committee, legislation that would equalize the tax treatment for all retirees who must self-fund their own retirement compared to employees of large companies who are able to participate in their company’s plans.
Maryland is one of the highest-taxed states in the United States and one of the worst places to retire. “After living in Maryland for the past 54 years, we finally moved to Shippensburg, Pa last August because we could not use the pension exclusion for our pension income. Now all our retirement income is tax free,” a former Marylander wrote to Delegate Krebs.
Small businesses are important to the local economy, and provide opportunities for hard-working Marylanders – plumbers, electricians, day care providers, nail salon operators, Realtors, farmers, hairdressers – who self-fund their own retirement and may not even realize that their retirement income will not be eligible for the deduction. Delegate Krebs wants to ensure that ALL Marylanders receive equal tax treatment.
Governor Larry Hogan is committed to making it more affordable for retirees to stay in Maryland by easing their tax burdens. “People who have been lifelong Marylanders and have contributed so much, and still have more to offer, are moving to other states for one reason – our state’s sky-high retirement taxes,” said Governor Hogan. By introducing this legislation, Delegate Krebs says, “we want to ensure that all retirees will receive tax relief on their pensions, no matter what the source.”