Income tax for Montgomery County residents could increase next year

Income tax for Montgomery County residents could go up next year
On Tuesday, Montgomery County Council introduced a resolution to potentially raise the income tax as part of next year's budget.
MONTGOMERY COUNTY, Md. - On Tuesday, Montgomery County Council introduced a resolution to potentially raise the income tax as part of next year's budget.
What we know:
County Executive Marc Elrich's original budget proposal included a 3.5% property tax increase. However, he has added an amendment to swap that out instead with a 0.1% income tax increase, going from 3.2% to 3.3%, which is the maximum now allowed in the state of Maryland.
The increase would be retroactive, meaning it goes into effect on your income from January 2025. If you're making $100,000 per year, it essentially amounts to an extra $100 annually.
The finance department estimates it will generate roughly $75 million in revenue.
"We look at ourselves competitively in the region - Montgomery County is still at the lower end of total taxes on residents and this doesn't change that," said Elrich.
What they're saying:
County leaders have repeatedly said this is one of the most difficult budgets they have ever dealt with.
"We just know it's a very stressful time for folks, so any income tax increase we may make, any changes we make, we have to be incredibly thoughtful about what our families, what our residents are experiencing right now," said Council President Kate Stewart. "And not just look at this budget, but the next few years."
When asked if there is any scenario that this budget passes without any kind of tax increase whether property or income, Elrich responded, "If there's no increase, you can pass the budget but there will be cuts to things - so either schools or services that go to residents."
Elrich said this plan would help fully fund Montgomery County Public Schools more than $3 billion budget request for 2026 - which is asking for an unprecedented $300 million more than last year.
He said the request had a sense of urgency to it with much of that money going to counselors, school safety initiatives, and staff for children with disabilities.
It would also help have some reserves in case of more federal cuts, Elrich said.
Local perspective:
Residents who spoke with FOX 5 had mixed opinions on the proposed hike.
"Things are already expensive enough, any reason to increase that is truly insane," said Kenny Wynn.
Dillon Mitcham just moved to Montgomery County from Frederick County and said the cost of living is exponentially higher.
"I think people who make more money should definitely be taxed on that but people who are trying to manage the day to day struggle, they don't need to be taxed for that, it's unnecessary," Mitcham said.
Michele Burkhammer grew up in Montgomery County and said she's seen it get more and more expensive, but the proposed increase is minimal.
"People move here because Montgomery County is a really great county to raise your children in, go to school here and honestly, the services that are provided to the underserved and the underinsured - that's priceless." Burkhammer said. "They do offer a lot of services in this county, it's a great county to live in because they do take care of their people and that costs money unfortunately."
What's next:
There is a public hearing on May 13 for people to voice their thoughts on the income tax increase.
County Council will be crunching numbers over the next few weeks. The final budget vote is on May 22.