Maryland HB1035 modifies the subtraction for overtime compensation under the state income tax.

Maryland HB1035 modifies the subtraction for overtime compensation under the state income tax. It repeals and reenacts Article – Tax – General Section 10–208(a) and adds to Section 10–208(dd) of the Annotated Code of Maryland. The bill specifies that qualified overtime compensation is defined by the Internal Revenue Code and includes it in the subtraction from federal adjusted gross income. This change will take effect July 1, 2026, and apply to taxable years beginning after December 31, 2025, but before January 1, 2029.

Maryland HB1035 modifies the subtraction for overtime compensation under the state income tax.

Maryland HB1035 modifies the subtraction for overtime compensation under the state income tax. It repeals and reenacts Article – Tax – General Section 10–208(a) and adds to Section 10–208(dd) of the Annotated Code of Maryland. The bill specifies that qualified overtime compensation is defined by the Internal Revenue Code and includes it in the subtraction from federal adjusted gross income. This change will take effect July 1, 2026, and apply to taxable years beginning after December 31, 2025, but before January 1, 2029.