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ing to Maryland Instructions for Form 502, you are required to file a Maryland Income Tax Return if you are or were a Maryland resident AND you are required to file a federal return.
Retirement eligibility at age 65 with at least 10 years of service, or age 60 with at least 15 years of service at a reduced benefit. Receive service credit for unused sick leave (visit the MSRPS website for more information)
When an employer chooses to compensate employees with contributions to a retirement or pension plan, rather than with wages, that compensation is not taxed in the current year. Instead, the income will be taxed in the future when employees choose to withdraw it, presumably when they are in a lower tax bracket.
Senior Tax Credit *New for tax year 2022. Residents who are at least 65 on the last day of the tax year may be eligible for a nonrefundable tax credit of up to $1,000.
Retirement Tax Elimination Act of 2023 This bill creates a subtraction modification against the State income tax for 100% of the income received by an individual who (1) is receiving old age or survivor Social Security benefits or (2) is at least age 65 and is not employed full time.
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Form 505 and You will need to file a nonresident income tax return to Maryland, using Form 505NR if you have income derived from: tangible property, real or personal, permanently located in Maryland; a business, trade, profession or occupation carried on in Maryland; or, gambling winnings derived from Maryland sources.
Other tax benefits for retirees in Maryland include: Pension Exclusion: Retirees can exclude up to $36,200 of their pension income from their taxable income. Senior Citizen Tax Credit: Retirees 65 and over may be eligible for a nonrefundable tax credit of up to $1,000.
To qualify, you must have been 65 or over or totally disabled, or if married, your spouse was totally disabled, on the last day of the tax year. To be considered totally disabled, you must have a mental or physical impairment which prevents you from engaging in substantial gainful activity.

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