The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released a new report outlining the economic benefits and massive tax savings the 20% Small Business Tax Deduction will bring to the 696,710 small businesses in Maryland now that it has been made permanent. The report also details several other federal tax relief wins that were signed into law.

Additionally, Maryland is projected to gain 24,000 new jobs annually over the next 10 years if the deduction remains in place, including an annual GDP increase of $1.5 billion for the first decade and $3 billion per year beyond 2035.

View the report for Maryland here.

“Small businesses tend to pay more in taxes than their large corporate competitors, but the 20% Small Business Deduction allows them to keep more of their hard-earned money and decide how to reinvest it back into their business,” said NFIB Maryland State Director Mike O’Halloran. “While making the Small Business Deduction gives Maryland small business owners federal tax certainty, owners are concerned that local lawmakers will enact yet another state tax increase on them next year. Main Street businesses urge the General Assembly to avoid a tax hike next legislative session.”

Since 2017, the Small Business Tax Deduction has allowed small businesses to deduct up to 20% of their business income. This has empowered them to grow, hire, invest in their employees, and give back to their communities. Without action by Congress, this essential tax deduction was set to expire at the end of 2025.

After being passed by Congress, President Trump signed legislation on July 4, 2025, making the Small Business Tax Deduction permanent. This permanent tax relief means America’s small businesses can use more of their hard-earned money to support their business and employees instead of sending it to their state and federal government. It also provides certainty and levels the playing field for small businesses against their large corporate competitors.

For more information about NFIB’s advocacy efforts and to access Maryland’s report visit here.