Retirement income in Maryland
Varies
Does Maryland Tax Retirement Income?
Short answer: Partly. Taxpayers 65+ (or totally disabled) may exclude up to $40,600 (2026) of employer-plan income from pensions, 401(k), 403(b), and 457(b) plans, reduced by Social Security/RRB received. IRA, Roth, SEP, and Keogh distributions do not qualify. The Comptroller lists $40,600 for 2026, slightly below the 2025 figure of $41,200; worth rechecking against final 2026 forms.
Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Retirement income in Maryland
Varies
Individuals / Personal Taxes
Partly. Taxpayers 65+ (or totally disabled) may exclude up to $40,600 (2026) of employer-plan income from pensions, 401(k), 403(b), and 457(b) plans, reduced by Social Security/RRB received. IRA, Roth, SEP, and Keogh distributions do not qualify. The Comptroller lists $40,600 for 2026, slightly below the 2025 figure of $41,200; worth rechecking against final 2026 forms.
Business justification
Partly. Taxpayers 65+ (or totally disabled) may exclude up to $40,600 (2026) of employer-plan income from pensions, 401(k), 403(b), and 457(b) plans, reduced by Social Security/RRB received. IRA, Roth, SEP, and Keogh distributions do not qualify. The Comptroller lists $40,600 for 2026, slightly below the 2025 figure of $41,200; worth rechecking against final 2026 forms. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions