On February 21, 2026, the state of Maryland announced new taxation measures aimed at addressing a significant budget deficit. Governor Angela Davis unveiled a series of proposals that will impact both individual taxpayers and businesses in an effort to generate much-needed revenue for the state.One of the key proposals is the implementation of a new top income tax bracket for high earners. Individuals earning over $500,000 annually will now be subject to a higher tax rate in order to help bridge the budget gap. This measure is expected to generate millions of dollars in additional revenue for the state.In addition to changes in the income tax structure, the state also announced an increase in the sales tax rate. The current rate of 6% will be raised to 6.5% in order to generate more revenue from consumer purchases. This increase will apply to a wide range of goods and services, from groceries to luxury items.Businesses in Maryland will also see changes to their tax obligations. The state will be implementing a new corporate tax surcharge for large corporations with annual revenues exceeding $1 million. This surcharge will help to ensure that businesses are paying their fair share towards the state's budget.The Maryland Department of Revenue has stated that these taxation measures are necessary in order to address the state's growing budget deficit, which has been exacerbated by the economic challenges of recent years. Governor Davis emphasized the importance of fiscal responsibility and ensuring that all residents and businesses contribute towards the state's financial health.While these new taxation measures may be met with some resistance, the state government is confident that they are necessary steps to ensure the long-term financial stability of Maryland. The measures are set to go into effect in the upcoming fiscal year, with the hope that they will help to alleviate the budget deficit and provide much-needed funding for essential services and programs.