Maryland implements new taxes and fees July 1st

MARYLAND. – Effective July 1, new taxes and additional fees went into effect in Maryland, drawing criticism from some lawmakers and residents.

“This year, we went into session with a $3 billion deficit, and the state was looking at ways to fill that gap through various taxes,” said Del. Wayne Hartman.

Among the increased costs residents will face are higher sales taxes, increased MVA registration fees, and a new tax on information technology services. Hartman said the IT tax will play a significant role in reducing the deficit.

“Services like web design, music downloads and gaming are included,” he said. “The tax itself will generate the largest portion of the $1.8 billion.”

Many residents are frustrated by the additional costs. Valerie, a local resident, told WMDT she has considered leaving the state.

“This is why everyone wants to leave Maryland and move to a red state—because these taxes are ridiculous,” she said.

The state also introduced new tax brackets for high-income earners. Individuals generating more than $500,000 annually will face a 6.25% tax rate, while those earning more than $1 million will pay 6.5%.

Hartman called the approach “overtaxation.”

“Everyone thinks the wealthy can afford it the most, but they can also afford to leave the state,” he said. “We saw this in the O’Malley years, where tax increases had a negative impact because our top earners left Maryland.”