County Adopts Progressive Income Tax, Cuts Rates for Earners Under $150K
StewartMay 15, 2026
Montgomery County's FY27 budget establishes a progressive income tax structure that lowers rates for residents earning under $150,000 — approximately 75% of county income tax filers — while raising rates for higher earners. The Government Operations and Fiscal Policy Committee, chaired by Councilmember Stewart, held a session on the progressive income tax on April 29, 2026. The change is intended to provide tax relief to lower- and middle-income residents without requiring homeownership or an application process.
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Source: Councilmember Kate Stewart, “My FY27 Budget Statement”, received May 15, 2026.
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Key dates
2026-04-29
meeting — Government Operations and Fiscal Policy Committee session on progressive income tax
2026-05-15
effective — Progressive income tax adopted as part of FY27 budget vote
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