Skip to content

Tax Changes Coming to Maryland on July 1

Tax Changes Coming to Maryland on July 1

June 2, 2025

Income, Sales & Use, and New “Tech Tax” Impacted

During the 2025 legislative session, the Maryland General Assembly passed the Budget Reconciliation and Financing Act (BRFA), which makes several changes to Maryland’s tax laws beginning in the 2025 tax year and beyond.

The BRFA contained numerous changes to the tax code that the Office of the Comptroller is responsible for implementing. Changes include:

  • Adding two new tax brackets and rates for the state’s personal income tax
  • Adding a 2% surcharge on capital gains income for households earning more than $350,000 in federal adjusted gross income (AGI)
  • Creating a phase-out for itemized deductions for households earning more than $200,000 in federal AGI
  • Expanding Maryland’s general sales tax to digital and IT services at a rate of 3%.

 

The Office of the Comptroller has created a webpage for taxpayers and tax professionals to refer to for these and other changes based on passage of the BRFA. It also held webinars for business owners and tax professionals that can be viewed on the Comptroller’s YouTube page. A copy of the slide deck from the webinars can be found here. Please contact Maryland State Director, Mike O’Halloran, with questions.

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

Masters who make jewelry from Venetian glass in their workshop
July 11, 2025
NFIB South Dakota Reacts to New Optimism Report
NFIB South Dakota State Director Jason Glodt reacts to Small Business Optim…
Read More
July 10, 2025
Historic Legislation Becomes Law and Stops Massive Tax Hike on…
The One Big Beautiful Bill Act is signed into law, permanently extending th…
Read More
July 10, 2025
LISTEN: NFIB LA Director Talks Insurance Reform, Tax Relief, an…
Leah Long legislation making the 20% Small Business Deduction permanent was…
Read More
July 10, 2025
New Hampshire Supreme Court Weighs In on Statewide Property Tax
State Education Funding and Property Tax under have been under scrutiny for…
Read More

© 2001 - 2025 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility