Few upcoming/proposed tax changes

From Budget Reconciliation and Financing Act of 2025

Excise tax (6%) - vehicle trade-in allowance: repealed for vehicle purchase over $15,000 (trade in allowance was added when excise tax increased from 5% to 6% years ago, now allowance portion will be going away while rate stays same).

Marijuana sales tax (9%) - increase to 15%

Retail delivery fee (new) - 75 cent charge for every retail delivery (last mile delivery). Think 75 cent charge for every Amazon order; currently Minnesota (50 cents, over $100 only with many exemptions) and Colorado (28 cents) have them.

Personal income: Currently ranges from 2% (under $1,000) up to 5.75% (over $250,000). Changes to 4.7% (under $100,000) up to 6.50% (over $1,000,000) for single filer. Joint/head of household changes to $150,000 and $1,200,000.

Removing itemized income tax deduction, but increasing standard deduction.

Corporate income: Currently 8.25%, changes from 8.25%-7.99% through December 31, 2027 (Virginia is 6%)

Child credit - $50 reduction for each $1,000 AGI over $15,000

There are lot more changes, but I believe some of these will affect most Marylanders.