(The Center Square) – Maryland ranks among the states with the highest tax burden in the country, as newly signed budget documents show how that revenue is being used while longer-term fiscal pressures remain.
Maryland ranks 7th nationally, with residents paying about 9.7% of their income in state and local taxes, according to a 2026 WalletHub analysis.
That total is driven largely by income taxes, which account for about 4.28% of personal income, along with property taxes at about 2.54% and sales and excise taxes at about 2.88%, according to the report.
Maryland’s ranking follows policy changes approved by state lawmakers in 2025, including new higher income tax brackets, a surcharge on certain capital gains and an expanded sales tax that applies to some services.
Those changes come as the state continues to manage structural budget pressures.
A 2025 report from Maryland’s Spending Affordability Committee says education spending tied to the Blueprint plan is expected to grow faster than revenue in the coming years.
Some recent projections have estimated a deficit of about $1.2 billion for the upcoming fiscal year, following earlier shortfalls in the $3 billion range that required a mix of spending cuts and revenue increases to close.
Gov. Wes Moore signed Maryland’s fiscal year 2027 budget this week, outlining spending across education, energy, public safety and family assistance programs, according to state budget documents.
The budget maintains the state’s Rainy Day Fund at about 8% of revenues and includes slightly lower general fund spending compared to the previous year, while continuing major investments.
The plan includes about $10.1 billion for K-12 education, an increase of more than $370 million from the prior year. It also sets aside roughly $306 million for energy programs and more than $434 million for child care support, along with $124.1 million for law enforcement funding.
For residents, that adds up to thousands of dollars each year. A household earning about $100,000 would pay roughly $9,700 in state and local taxes based on that share.
That shows how much residents are paying as the state funds programs like education, energy and child care.
