Tuition Remission FAQs

What is tuition remission?

Tuition remission is a program that provides employees with an opportunity to take classes at a University System of Maryland campus with waived tuition.

Who is eligible?

All regular faculty and staff employed at least 50 percent are eligible for tuition remission. Contractual employees are only eligible to attend classes at their home institution and the benefit is specified in the employment contract. 

What campuses accept the tuition remission program?

All of the University System of Maryland institutions participate in the tuition remission program.

*Some restrictions may apply; please refer to the USM policy*.

How much tuition is waived?

Tuition is waived for up to 8 credits per semester. The number of credits is prorated for employees working less than full time.

Are UMB retirees eligible for tuition benefits?

Yes, the same rules apply for retirees and active employees.

Are there any programs that are excluded from this program?

The MD and DDS degree programs at UMB are excluded. Employees should contact the Records and Registration Office at the institution to be attended to learn which programs are excluded.

Is tuition remission taxable?

  • Employees: Yes, per IRS guidelines, if the value of the tuition remission for graduate-level courses in a calendar year exceeds $5,250. The value of the tuition remission will be added to the employee’s earnings and taxed over one pay period if the taxable amount added to your income is $200 or less. If the amount exceeds $200, the taxation will occur over four or five pay periods as designated by the Maryland Central Payroll Bureau.
  • Retirees: Yes, retirees will be billed by the University of Maryland, Baltimore Central Billing Office for the taxes owed on any taxable tuition remission. 
  • Spouses and dependents: Yes, separate taxation rules apply for spouses and dependents. All graduate-level courses are taxable. See FAQs Spouse and Dependent.

How will I know if I will be taxed?

Keep school bills and monitor the cost of each graduate-level course taken. Each USM school has different rates. The UMB Benefits Office notifies employees approximately one week before the taxation will start.

Will the letter I receive from the Benefits Office show what my new pay will be with the taxation?

No, the letters are prepared before payroll has been entered, so the Benefits Office does not have your net pay information. To review your paycheck online the Wednesday before payday, employees can go to the Payroll Online Service Center.

Can I ask for additional pay periods for the taxation to occur to decrease the taxable amount in my paycheck?

Per the Maryland Central Payroll Bureau, the deduction periods cannot be extended.