In 2018, legislation passed which expanded the Hometown Heroes Act of 2017 to include correctional officers by providing them with a pension exclusion of $15,000, if the individual is between the ages of 55 and 64. This is the same benefit that was provided to federal, state or local law enforcement officers, fire, rescue, or emergency services personnel in 2017, effective tax year 2017. The significance of this pension exclusion is the early age at which you can enjoy this tax benefit. The 2018 legislation also expanded the existing military retirement pension exclusion from $10,000 to $15,000. Again, the individual is eligible for this tax benefit at 55 years of age.

Maryland's pension exclusion is $29,000, however, you must be 65 years old to claim it. Depending on your age, you may be entitled to the higher, general pension exclusion, rather than the special Hometown Heroes benefit that applies when an individual turns 55 years old.

Barbara J. Wilkins
Director of Government Relations

Department of Budget and Management
45 Calvert Street
Annapolis, MD 21401