Maryland bill aims to prevent military veterans from moving out of state
New bill could give Maryland veterans a state tax break
Military veterans are moving out of Maryland because the state continues to tax their retirement paycheck, top officials say. Now, a new bill is looking to change that. FOX 5's Tom Fitzgerald spoke to Governor Wes Moore about the "Keep Our Heroes Home" Act.
Military veterans are moving out of Maryland because the state continues to tax their retirement paycheck, top officials say. Now, a new bill is looking to change that.
Maryland Gov. Wes Moore, a U.S. Army combat veteran himself, testified at a hearing with other military veterans to support the "Keep Our Heroes Home" Act.
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The governor argued the bill would keep veterans from moving out of Maryland, which they're doing to avoid state taxes on their retirement income.
Other veterans say Maryland's current tax policy makes it hard to stay.
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Thirty-six other states, including nearby West Virginia, Pennsylvania and New Jersey, do not tax their military retirement income at all.
If the bill passes, the military retirement tax exemption in Maryland would go up to $25,000 in 2023. Right now, the law caps veterans' deductions at the first $5,000 if they're under 55.