Maryland HB33 modifies income tax rules to reduce itemized deductions for high-income earners.

Maryland HB33 amends the state's income tax laws to reduce the amount of itemized deductions for certain individuals. Specifically, it reduces allowable deductions by 7.5% of the excess of the federal adjusted gross income over specified thresholds. This change applies to all taxable years beginning after December 31, 2025, and affects individuals with incomes exceeding $100,000 for married filers and $200,000 for all other filers. The bill also clarifies that the deduction for charitable contributions is not included in the itemized deductions subject to this reduction.

Maryland HB33 modifies income tax rules to reduce itemized deductions for high-income earners.

Maryland HB33 amends the state's income tax laws to reduce the amount of itemized deductions for certain individuals. Specifically, it reduces allowable deductions by 7.5% of the excess of the federal adjusted gross income over specified thresholds. This change applies to all taxable years beginning after December 31, 2025, and affects individuals with incomes exceeding $100,000 for married filers and $200,000 for all other filers. The bill also clarifies that the deduction for charitable contributions is not included in the itemized deductions subject to this reduction.