MARYLAND - As Marylanders shake off the winter chill and look toward Spring 2026, a series of scheduled rate hikes and tax adjustments are set to tighten household budgets across the Old Line State. While the Moore-Miller administration has made "affordability" a centerpiece of the State fiscal policy, several utility and insurance shifts are officially taking hold this season.
From your monthly energy bill to your long-term property outlook, here are the three major expenses that will get more expensive in Maryland this spring.
1. BGE Utility Bills (The February Bump)
If you are a Baltimore Gas and Electric (BGE) customer, your February and March statements will likely be higher than they were last spring. Following a ruling by the Maryland Public Service Commission (PSC), new rate adjustments are officially taking effect.
- The Increase: Starting in February 2026, the average residential electric bill is projected to increase by approximately $0.72 per month, and the average gas bill is expected to rise by $1.95 per month.
- The "Why": These increases are part of a reconciliation request to recover costs BGE under-collected during its multi-year rate plan.
- The Grid Factor: Beyond local delivery rates, Maryland is bracing for higher "capacity" costs from the regional grid operator, which recently saw record-breaking auction prices. This means the actual cost of electricity generation could see upward pressure as the spring peak approaches.
2. Individual Health Insurance (The "Subsidy Gap")
Spring marks the first few months that many Marylanders will feel the full weight of the 13.4% average premium hike for individual health insurance plans.
- The Spike: For those who buy coverage through the Maryland Health Connection, average individual rates jumped significantly on January 1. The state created a new subsidy to help bridge the gap, and many families earning above certain thresholds are now seeing their first "real-world" impacts in their spring budgets.
- The Catalyst: The increase was primarily driven by the expiration of enhanced federal tax credits. While Maryland remains a national leader in keeping rates stable, the "out-of-pocket" reality is hitting many middle-class households just as they prepare for spring expenses.
3. Property Tax Reassessments (The Group 2 Phase-In)
ODDecember125, the Maryland Department of Assessments and Taxation (SDAT) released reassessment notices for "Group 2" properties—affecting nearly 700,000 residents. Throughout the spring of 2026, homeowners will begin reviewing these new values, which will dictate their tax bills for years to come.
- The Valuation Jump: Statewide, residential property values in Group 2 increased by an average of 13.2%.
- The Spring Impact: While Maryland's property tax structure phases these increases over three years, the first "bump" hits your taxable base this year.
- The Regional Spotlight: Residents in Montgomery County are expected to see some of the most significant shifts, with many homeowners facing a notable monthly increase in property-related costs due to rising assessments.
The Silver Lining: What's Getting Cheaper?
It's not all bad news for your wallet. As part of the FY 2026 budget, Maryland is implementing a few relief measures to offset these rising costs:
- The Inheritance Tax: This has been officially eliminated, a significant relief for families managing estates this year.
- Consolidated Income Brackets: Many Marylanders will see a slight decrease in their state tax withholding as the state consolidates its bottom income tax brackets and increases the standard deduction.
