Maryland’s $5,000 Student Loan Tax Credit Deadline Approaches

Student loan borrowers in Maryland have an opportunity to ease their debt burden with a state tax credit worth up to $5,000 but the deadline is fast approaching. Applicants must file by September 15, 2025, to qualify for the Student Loan Debt Relief Tax Credit, a program designed to reward residents who continue to live and work in the state while managing student loan obligations.

What Happened

Why It Matters

Implications for CPAs and Advisors

Looking Ahead

While federal student loan relief remains uncertain, Maryland’s program provides a tangible, recurring benefit to borrowers. With growing calls for states to step in where federal policy falls short, similar credits could expand in other jurisdictions, even as some states move in the opposite direction, like Illinois choosing to tax forgiven student loan balances instead. For now, Maryland residents must act quickly to take advantage of this year’s opportunity.

Stay Ahead of State-Level Relief Programs

Tax credits like this show how state policies can deliver real financial impact to residents managing debt, the same pattern playing out in Maryland's digital ad tax disclosure ruling and the state's broader push to close a $3.3 billion budget deficit through new taxes and spending cuts.

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