From Tax Credits To Gas Spikes: 7 New MD Laws Taking Effect July 1

Editor's note: A previous version of this story included legislation on property tax deduction limits that had not passed committee and mentioned an update to historic tag standards that will take effect July 2027, not 2026. We've updated the article to reflect the change.

From a gas tax spike to tax credits 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 seven 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.

Excusing Students For Civic Engagement

Each of Maryland's county school boards must include provisions that allow for an excused or discretionary absence for any student participating in civic engagement activities, which range from providing testimony to meeting with lawmakers and taking part in a Maryland General Assembly program.

Venison Donation Tax Credit

Marylanders who donate deer meat to certain organizations will now be able to apply a credit of up to $600 against the state income tax. The change, which is a $300 spike, can be applied to all taxable years after Dec. 31, 2025.

Public Safety Retirement Income

A resident aged 55 or older who worked as a public safety employee — correctional officer, medical technician, paramedic — will be able to subtract up to $20,000 of retirement income over a period of five years. Individuals were previously limited to just $15,000.

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.

Free Menstrual Hygiene Products

All higher education institutions with on-campus housing will be required to provide free menstrual hygiene products in health centers on or before Aug. 1, 2028.

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.