As the calendar year 2025 is now fully upon us and tax season is officially underway, we want to provide a summary of recent Maryland-related tax news that could impact your tax planning efforts.
Maryland Budget Gap and Governor Moore’s Tax Plan
Maryland Governor Wes Moore recently rolled out his initial proposals for addressing Maryland’s significant $3 billion budget gap.
The $67.3 billion plan is driven by four principles: growing their economy, strengthening Maryland’s labor force, modernizing government, and fixing the state tax system. The proposal aims to not raise sales or property tax and provide a tax cut to nearly two-thirds of Marylanders.
However, Gov. Moore intends to ask “Marylanders who have done exceptionally well financially to contribute a little more” to fund targeted investments in economic growth. This indicates a plan to raise taxes on higher income individuals and families. Read more here.
GOP Lawmakers on Moore Administration Budget: Not Enough Cuts, Too Many Taxes
While Gov. Moore’s budget aims to provide a balanced plan that includes significant tax cuts and investments, Republican legislators strongly disagree.
While Gov. Moore presents it as a balanced plan aimed at stimulating economic growth through targeted spending cuts and tax reductions, Republicans believe that it is a tax and spend budget that does little to curtail overall spending. The debate over the accuracy of the proposed cuts and the impact of new taxes and fees will likely dominate the legislative session. Read more here.
Maryland’s Tax Burden Ranks Among Nation’s Highest, Study Finds
A recent study from the Tax Foundation ranks Maryland as 46th out of 50 states in tax competitiveness. Only Connecticut, California, New Jersey, and New York rank lower. This places Maryland among the least attractive states for taxpayers.
The state’s low ranking in tax competitiveness, coupled with the imposition of numerous taxes and the proposed tax hikes, is raising significant alarms about how MD taxpayers could potentially relocate to states with lower taxes. This could have a negative impact on the state’s fiscal health. Read more here.
Have any questions about overall taxes in the state of Maryland? Please get in touch with us today!
Categories: Tax
