Progressive income tax replaces proposed flat increase
Montgomery County
Summary
The council is reshaping how county residents are taxed: instead of the executive's flat 3.3% hike, a progressive structure would cut rates for most earners and eliminate the homeowner-only income tax offset credit. Renters — 35-40% of residents — benefit most, but several members say it still doesn't raise enough to protect schools.
At a glance
- Total mentions
- 1
- Last 30 days
- 0
Last discussed May 8, 2026.
Impact analysis
Roughly $37.5 million less revenue than current rates in FY27 under the amended plan, with the ITOC elimination adding about $77.8 million in one-time resources.
Lower- and middle-income earners and renters, who pay less and never qualified for the homeowner credit.
Higher-income homeowners lose the ITOC property tax credit and face higher marginal rates above $150,000.
Mentions & discussions (1)
We'll email you when it's on an upcoming agenda and when it's voted on, at most once a day.
The weekly brief for Montgomery County
What the council decided, in plain English — one email a week.
Free. Unsubscribe with one click any time. We never sell your email.