County Adopts Progressive Income Tax, Cuts 75% of Filers' Rates
StewartMay 15, 2026
As part of the FY27 budget agreement, the Montgomery County Council adopted a progressive income tax structure that reduces income taxes for approximately 75% of county filers — those earning less than $150,000. Residents with higher incomes will pay more under the new structure. The change was a central element of the FY27 budget compromise reached on May 15, 2026.
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Source: Councilmember Kate Stewart, “Councilmember Stewart's Statement on the FY27 Operating Budget and Amendments to the FY27-32 Capital Improvements Program”, received May 15, 2026.
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Key dates
2026-05-15
effective — Progressive income tax structure adopted as part of FY27 budget agreement
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