Posted on 01/02/26
| News Source: FOX News
Baltimore, MD - Jan. 2, 2026 - In 2025, Maryland taxpayers saw many tax and fee increases, but the state is still facing a major budget deficit, and that means 2026 could bring more of the same.
From increased vehicle registration fees to a 6% vending machine tax, an increased emissions testing fee up to $30, a sports betting hike from 15 to 20%, and many more.
Anirban Basu, a local economist and CEO of Sage Policy Group Inc, said, “There was $1.6 billion in additional taxes to try and address a $3.3 billion fiscal shortfall.”
Now in 2026, lawmakers are still facing a nearly $1.5 billion budget deficit as they head into session in mid-January.
“This might actually be a legislative session that is more focused on cost cutting and reducing state expenditures,” Basu said.
He predicts taxpayers will continue to feel the burden in 2026.
“If this was simply a 2025 phenomenon, but we keep having bad years, and 2026 is going to bring forth another fiscal shortfall in Annapolis,” he said.
Somebody out there in your viewership is going to be paying more to the state of Maryland, one way or the other.”
Already in 2026, property tax assessments are set to rise by an average of 12.7%.
Basu said in the short term, the state has to find ways to cut spending, and in the long term he said, “(Lawmakers) got to grow this tax base, the state's economy has got to go on a run, it's got to rebuild its momentum.”
He said now it’s up to the governor and state lawmakers to turn things around or taxpayers will continue to struggle.
The 2026 legislative session begins on Jan. 14.