Looking Ahead: Key 2026 Tax & Financial Trends to Watch
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2026 is just around the corner, and with it comes several important tax and financial updates for Maryland residents and business owners. Understanding these changes now can help you make informed financial decisions throughout the year.
Here’s what should be on your radar for 2026.
For Individuals
What Changes Should Maryland Taxpayers Expect?
Many parts of the Tax Cuts and Jobs Act (TCJA) are set to expire at the end of 2025. If these changes move forward, it could mean:
Higher federal income tax brackets
A lower standard deduction
Adjustments to child and family tax benefits
Continued limits on state and local tax (SALT) deductions
Maryland households, especially in higher-tax counties, may notice these shifts in take-home pay and overall tax liability. Reviewing your withholding, deductions, and retirement contributions can help you stay on top of your finances.
How Will 2026 Estate and Gift Tax Changes Affect Maryland Residents?
The federal estate and gift tax exemption is set to decrease in 2026. For Maryland residents, this change may have a greater impact when combined with the state’s own estate tax rules. Understanding how they interact is key to effective planning.
Be sure to keep the following in mind:
Federal estate and gift tax exemption: Decreasing in 2026, meaning more estates may be subject to federal taxes.
Maryland estate tax: Applies to estates over $5 million with a maximum tax rate of 16%.
Maryland inheritance tax: Certain beneficiaries may be subject to additional state-level taxes.
If you have significant assets or are thinking about wealth transfers, reviewing options such as trusts or gifting strategies in 2026 can help navigate these changes and avoid surprises.
For Businesses
What Should Maryland Business Owners Know for 2026?
Maryland employers should prepare for several important updates:
Paid Family and Medical Leave Insurance (FAMLI): Maryland plans to roll out a program that could offer up to a $1000/week for up to 12 weeks of paid leave.
Minimum wage increases: Scheduled increases may affect payroll and budgeting.
IRS enforcement: Expect increased attention on payroll taxes, S corporations, partnerships, and recordkeeping compliance.
Staying ahead of these updates can help Maryland business owners manage costs and stay compliant.
What Retirement Plan Changes Are Coming in 2026?
SECURE 2.0 continues to implement new rules in 2026, including:
Auto-enrollment requirements for certain new workplace retirement plans
Updated catch-up contribution limits
Roth-related adjustments for employees and employers
Small businesses without existing plans can also explore MarylandSaves—the state-run retirement program—to meet compliance requirements.
Stay Informed and Prepared
2026 brings several updates that could affect your taxes, finances, and business operations. DeLeon & Stang is here to guide Maryland residents and business owners with clear, practical advice. Contact our team of experts to review how these changes may impact your financial and tax planning.