EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0803*
HOUSE BILL 803
Q3 4lr2486
CF SB 748
By: Delegates Buckel, Adams, Anderton, Arentz, Baker, Bouchat , Chisholm,
Ciliberti, Ghrist, Griffith, Hartman, Hornberger, Howard, Hutchinson,
Jacobs, Kipke, R. Long, Mangione, McComas, Metzgar, Miller, M. Morgan,
T. Morgan, Munoz, Nawrocki, Otto, Pippy, Reilly, Rose, Schmidt, Stonko,
Szeliga, Tomlinson, Valentine, and Wivell
Introduced and read first time: January 31, 2024
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Alteration of Brackets and Rates 2
(Economic Prosperity Act of 2024) 3
FOR the purpose of altering the rates and rate brackets under the State income tax on 4
certain income of individuals; and generally relating to the State individual income 5
tax. 6
BY repealing and reenacting, with amendments, 7
Article – Tax – General 8
Section 10–105(a) 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2023 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13
Article – Tax – General 14
10–105. 15
(a) (1) For an individual other than an individual described in paragraph (2) 16
of this subsection, the State income tax rate is: 17
(i) [2%] 4% of Maryland taxable income of [$1] $15,000 through 18
[$1,000] $75,000; 19
2 HOUSE BILL 803
(ii) [3%] 4.5% of Maryland taxable income of [$1,001] $75,001 1
through [$2,000] $150,000; 2
(iii) [4%] 4.75% of Maryland taxable income of [$2,001] $150,001 3
through [$3,000] $200,000; 4
(iv) [4.75%] 5% of Maryland taxable income of [$3,001] $200,001 5
through [$100,000] $300,000; 6
(v) [5%] 5.5% of Maryland taxable income of [$100,001] $300,001 7
through [$125,000] $350,000; AND 8
(vi) [5.25%] 5.75% of Maryland taxable income [of $125,001 through 9
$150,000; 10
(vii) 5.5% of Maryland taxable income of $150,001 through $250,000; 11
and 12
(viii) 5.75% of Maryland taxable income in excess of $250,000] IN 13
EXCESS OF $350,000. 14
(2) For spouses filing a joint return or for a surviving spouse or head of 15
household as defined in § 2 of the Internal Revenue Code, the State income tax rate is: 16
(i) [2%] 4% of Maryland taxable income of [$1] $30,000 through 17
[$1,000] $90,000; 18
(ii) [3%] 4.5% of Maryland taxable income of [$1,001] $90,001 19
through [$2,000] $200,000; 20
(iii) [4%] 4.75% of Maryland taxable income of [$2,001] $200,001 21
through [$3,000] $250,000; 22
(iv) [4.75%] 5% of Maryland taxable income of [$3,001] $250,001 23
through [$150,000] $350,000; 24
(v) [5%] 5.5% of Maryland taxable income of [$150,001] $350,001 25
through [$175,000] $400,000; AND 26
(vi) [5.25%] 5.75% of Maryland taxable income [of $175,001 through 27
$225,000; 28
(vii) 5.5% of Maryland taxable income of $225,001 through $300,000; 29
and 30
HOUSE BILL 803 3
(viii) 5.75% of Maryland taxable income in excess of $300,000] IN 1
EXCESS OF $400,000. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2024, and shall be applicable to all taxable years beginning after December 31, 2023. 4