EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0748*
SENATE BILL 748
Q3 4lr2489
CF HB 803
By: Senators Corderman, Hershey, Ready, Bailey, Carozza, Folden, Gallion,
Jennings, Mautz, McKay, Salling, Simonaire, and West
Introduced and read first time: February 1, 2024
Assigned to: Budget and Taxation
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
(ii) [3%] 4.5% of Maryland taxable income of [$1,001] $75,001 20
through [$2,000] $150,000; 21
2 SENATE BILL 748
(iii) [4%] 4.75% of Maryland taxable income of [$2,001] $150,001 1
through [$3,000] $200,000; 2
(iv) [4.75%] 5% of Maryland taxable income of [$3,001] $200,001 3
through [$100,000] $300,000; 4
(v) [5%] 5.5% of Maryland taxable income of [$100,001] $300,001 5
through [$125,000] $350,000; AND 6
(vi) [5.25%] 5.75% of Maryland taxable income [of $125,001 through 7
$150,000; 8
(vii) 5.5% of Maryland taxable income of $150,001 through $250,000; 9
and 10
(viii) 5.75% of Maryland taxable income in excess of $250,000] IN 11
EXCESS OF $350,000. 12
(2) For spouses filing a joint return or for a surviving spouse or head of 13
household as defined in § 2 of the Internal Revenue Code, the State income tax rate is: 14
(i) [2%] 4% of Maryland taxable income of [$1] $30,000 through 15
[$1,000] $90,000; 16
(ii) [3%] 4.5% of Maryland taxable income of [$1,001] $90,001 17
through [$2,000] $200,000; 18
(iii) [4%] 4.75% of Maryland taxable income of [$2,001] $200,001 19
through [$3,000] $250,000; 20
(iv) [4.75%] 5% of Maryland taxable income of [$3,001] $250,001 21
through [$150,000] $350,000; 22
(v) [5%] 5.5% of Maryland taxable income of [$150,001] $350,001 23
through [$175,000] $400,000; AND 24
(vi) [5.25%] 5.75% of Maryland taxable income [of $175,001 through 25
$225,000; 26
(vii) 5.5% of Maryland taxable income of $225,001 through $300,000; 27
and 28
(viii) 5.75% of Maryland taxable income in excess of $300,000] IN 29
EXCESS OF $400,000. 30
SENATE BILL 748 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2024, and shall be applicable to all taxable years beginning after December 31, 2023. 2