Council Adopts Progressive Income Tax, Rejects Property Tax Hike
MCCouncilMay 15, 2026
The Montgomery County Council approved a new progressive income tax structure under which every resident pays a lower rate on the first $150,000 of earned income, replacing the County Executive's proposed flat 3.2%-to-3.3% increase. Households earning up to $50,000 receive up to a $250 tax break and those earning $50,001–$150,000 receive up to $450, while earners above $150,000 pay the 3.3% rate. The Council separately rejected the County Executive's proposed property tax rate increase of 6.3 cents per $100 of assessed value.
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Source: Montgomery County Council – Press Release, “Montgomery County Council Reaches Agreement on $7.9 Billion Fiscal Year 2027 Operating Budget Focused on Implementing a Progressive Income Tax Structure, Rejecting the Proposed Property Tax Rate Increase and Supporting Essential Services for Residents”, received May 15, 2026.
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Key dates
2026-05-15
effective — Council agreement on progressive income tax structure and rejection of property tax rate increase
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