Some Marylanders may see their taxes increase as part of Gov. Wes Moore’s fiscal 2026 budget proposal, though it’s unclear exactly who will be impacted.
A day before he’s scheduled to unveil his budget plans, Moore previewed some of the ways he’s planning to address the state’s $3 billion budget shortfall.
About two-thirds of Marylanders will get a tax cut under the proposed plan, Moore said, and he isn’t proposing increases in sales or property taxes. The budget proposal would also eliminate the inheritance tax.
The corporate tax rate would be cut as part of his plans, but Moore said the proposal means “asking Marylanders who have done exceptionally well, that we will pay a little bit more to make sure we’re focusing on having the best public schools in America, making sure we’re having safer neighborhoods and safer communities.”
After a speech in College Park on Tuesday afternoon, Moore declined to define those who have done “exceptionally well,” only suggesting that the details will be included in his budget proposal Wednesday.
“People, like myself, who’ve done very, very well over these past years, we are being asked to pay a little bit more because we believe that that is going to help to ignite the kind of economic momentum and the data-driven momentum that people are looking for,” Moore said.
In a wide-ranging speech at IonQ, a quantum computing company, Moore said Maryland is facing “two very distinct storms” — the financial challenges, which he described as the worst in 20 years, and “the fact that we have an incoming administration that has the potential to significantly disrupt our state’s economy because Maryland state’s economy oftentimes is so intertwined with Washington.”
Maryland’s economy has been stagnant for over a decade, and he’s anticipating that economic growth is the only way the state can address looming issues, Moore said.
As part of his administration’s plan to boost the economy, Moore said they’re working to make it easier for entrepreneurs to start and grow businesses in Maryland, because “it should never take a place or a company three years to get a permit.”
The state will emphasize investments in the aerospace, defense and science industries because those are sectors in which Maryland has a competitive advantage, Moore said.
Moore’s proposal includes increasing funding for state programs, such as the “Build Our Future” initiative to support new companies. He’s proposing new investments to “strengthen the talent pipelines in jobs in cyber and biotech,” and is planning for new investments in the $100 million Frederick hotel project, which is establishing a new conference center and hotel in the county’s downtown district.
The proposed plan also includes money for a new academic facility at Johns Hopkins, with the hope of improving the university’s “current efforts on data science and artificial intelligence,” Moore said.
The budget will offer new funding to IonQ, which he characterized as “the global leader” in the quantum computing sector. He’s proposing $27.5 million “for a new Capital of Quantum initiative here in the state of Maryland.”
IonQ has evolved over a handful of years from about 30 staff members and a $20 million valuation to a $1 billion valuation and 450 workers, said Peter Chapman, IonQ’s president and CEO.
With help from state funding and a partnership with the University of Maryland, the initiative aims to push the state toward becoming the “Silicon Valley” for the quantum computing industry, according to a news release.
“IonQ is a little bit of a poster child for the Discovery District,” Chapman said. “As the first one to go from a University of Maryland spinout, now to a public company. We look to support and help many other companies to do exactly that here.”
Once Moore’s budget is approved, according to a news release, IonQ will double its corporate headquarters workforce to at least 250 people in the Maryland area in the next five years. That’s expected “to create high-paying and skilled jobs in diverse fields, such as construction, software and hardware engineering, operations, applied physics, networking, and more,” the news release said.
Lt. Gov. Aruna Miller said the industry presents a unique chance for growth “by leading in quantum computing.”
Meanwhile, in the coming days, Moore said he plans to roll out several bills as part of his administration’s legislative agenda. One is the Procurement Reform Act, which aims to make the procurement process more transparent and fair. It would expand opportunities for minority, women and veteran-owned businesses to compete for state contracts, he said.
“It says that if the state of Maryland is going to invest billions of dollars in contract, it needs to be with Marylanders and Maryland businesses,” Moore said.
The next is the Raise Act, which would “accelerate the apprenticeship and trade platforms with the state of Maryland.”
A third proposed bill is the Housing for Jobs Act, which would make affordable housing more accessible.
“If we do not address housing, we will never unlock this state’s full potential,” Moore said.
Moore called his plans “bold,” but said they ensure “that we are listening to the people of this state.”
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