Maryland sales tax increases from 5 percent to 6 percent today (Jan. 3, 2008). In the fall, the Maryland General Assembly voted in the increase during a special legislative session called by Governor Martin O'Malley to deal with Maryland's looming revenue shortage.

While a sales tax increase affects those with low incomes most because a higher percentage of their income is spent on taxable consumer goods, the state also raised rates for Maryland income tax. Those who make more than $150,000 a year will pay more income tax in 2008.

And while not a tax increase, homeowners have to look out for the new rules surrounding the Maryland Homestead Credit passed by the Maryland General Assembly. This credit on property taxes in Maryland has been automatic in the past for owner-occupied properties, but this year homeowners will have to apply for it.

But here's some good news about taxes in Maryland. The state enacted a sales tax holiday for clothing and shoes for back-to-school shopping. Bad news is....it's not until 2010!