County Adopts Progressive Income Tax, Rejects Property Tax Hike
MCCouncilMay 21, 2026
The Council implemented a new progressive income tax structure under which residents pay a lower rate on the first $150,000 of earned income, replacing the County Executive's proposed flat 3.3% rate. Households earning up to $50,000 will receive up to a $250 tax break and those earning $50,001–$150,000 up to a $450 break; income above $150,000 is taxed at 3.3%. The Council also rejected the County Executive's proposed 6.3-cent-per-$100 property tax rate increase.
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Source: Montgomery County Council – Press Release, “Montgomery County Council Votes to Approve $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 21, 2026.
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Key dates
2026-07-01
effective — New progressive income tax structure takes effect
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