On May 6, 2025, Maryland Governor Maryland Wes Moore signed into law the Tax Relief and State Personnel Equality for Service Members Act (S.B. 0278). The legislation introduces provisions aimed at expanding service member tax benefits and deductions for more service members and their families.
Standardization of Definitions
Senate Bill 278 sets forth definitions as set in the U.S. Code. Terms such as “active service member,” “uniformed services,” and “reserve component,” are broadened to include members of the National Oceanic and Atmospheric Administration (NOAA) and the Public Health Service (PHS). The inclusion makes eligible certain benefits previously limited to the armed forces. Some of these benefits include:
- Income Tax Abatement for Deceased Uniformed Service Members: The abatement of income tax for individuals who die in active service, or as a result of wounds, disease, or injury incurred while serving.
- Property Tax Relief for Disabled Renters: Service members federally qualified as permanently or totally disabled may qualify for property tax relief from the Maryland government.
- Reemployment and Reinstatement Rights: Rights granted to State employees returning from uniformed service.
Certain qualifications for these benefits still apply. Information on these benefits can be found on the Maryland Government’s Veteran & Military Families State and Federal Benefits page.
State Tax Exemption for Veteran Not-for-Profits
The legislation also aligns the national sales and tax exemption for veteran national organizations with the exemption status for Maryland. All veterans’ organizations that are nationally recognized as tax-exempt will qualify for Maryland’s sales and use tax exemption, regardless of which branch of the military they represent.
CBM-Supporting Those Who Serve
If you need guidance navigating Maryland or Federal service member tax benefits, CBM’s tax services team is honored to help. Contact us to get in touch with an expert to help with your unique tax situation.
