Council Rejects Property Tax Hike, Reforms Income Tax

The Montgomery County Council unanimously rejected County Executive-proposed increases to both property and income taxes in the Fiscal Year 2027 budget. Under a progressive income tax plan championed by Council President Fani-González, 95 percent of County wage earners will receive an income tax reduction, while the highest earners will pay slightly more. The $140 million Income Tax Offset Credit (ITOC) was eliminated, with remaining funds reallocated to MCPS and services for vulnerable residents.