From Historic Tags To Gas Spikes: 7 New MD Laws Taking Effect July 1

From a gas tax spike to overtime pay compensation and greater transparency on student harassment, hundreds of new laws and amendments that cleared the Maryland General Assembly will take effect July 1.

Since the end of the 2026 legislative session, nearly 900 bills have cleared the bench.

Below are five new measures that could directly impact Marylanders.

Gas Prices To See Slight Spike

A release issued by the Comptroller of Maryland states the gas tax will increase to 46.6 cents per gallon, a roughly six-tenths bump from current levels. For diesel fuel, drivers will see taxes jump to 47.5 cents per gallon.

The spike, which is in addition to the federal tax that amounts to 18.4 cents per gallon, marks the first increase in two years for the state.

Overtime Pay Tax Deduction

Enacted as part of the One Big Beautiful Bill Act of 2025, the HB 1035 legislation will establish an income tax subtraction for Marylanders who regularly work overtime, increasing take-home pay. The measure will apply to the 2026-2028 tax years, terminating on June 30, 2029.

Upped Transparency On School Harassment

Reports documenting any cases of student bullying, harassment or intimidation within school systems will require administrators to detail whether incidents were motivated, in part or entirely, by a person's characteristics, such as their race, religion or sexual orientation.

Upon request, school boards must provide information about the group-based incidents but ensure that no individual student can be identified.

Pay Increase For Rideshare Drivers

Rideshare companies such as Uber or Lyft will be required to pay drivers a minimum amount for each passenger trip originating in the state. Base pay, per mile, starts at $1.66 with an additional 40 cents per minute. Wheelchair-accessible cars will earn an additional $1.18 per mile.

Additionally, at least $5 of each trip's cost must be guaranteed to the driver, as well as at least 80% of any cancellation fee.

Property Tax Deduction Limits

With HB 926, Marylanders will see itemized deductions limited by disallowing the first $10,000 of state and local real property tax deductions for the 2025-2029 tax years. The move is expected to increase state and local income tax collections for some homeowners.

Reversing Course On Historic Tags

After some initial confusion on the topic of historic tags, residents will be eligible for historic tags so long as the car is at least 25 years old. The measure applies prospectively.

Any drivers who had their license plates suspended or revoked due to the Budget Reconciliation and Financing Act of 2025 must have their tags reinstated without further action required by vehicle owners.

Cannabis Advertisement Limitations

New restrictions taking effect require that exterior signs, such as posters or placards, placed at marijuana dispensaries be limited to identifying the shop as a licensed source and include safety warnings. Any media advertisements are banned unless reliable data shows that 85% of the viewership is expected to be 21 or older. Ads are also barred from using any cartoons or mascots that could be used to market to minors.