Nearly two-thirds of Marylanders could see their tax bills go down under Gov. Wes Moore’s new budget proposal, a top-line number that the Democrat is touting in a difficult financial year as he proposes asking the state’s wealthiest to pay more.

But what does that actually mean for the average taxpayer? How would tax cuts work? Who would pay more? Here’s what we know so far.

4 out of 5 Maryland taxpayers would see a tax cut or no change

The “no change” group makes up 22% of that total, according to administration officials. The average benefit for Marylanders receiving a tax cut would be about $173, officials said, though that number may be as much as $300 for people in lower- and middle-income ranges.

The standard deduction would double

The standard deduction is the portion of your income that is not subject to taxes, which lowers your tax bill. For the current tax year, the standard deduction is $2,700 for single taxpayers and $5,450 for joint filers, less than many other states. Moore would also end the phase-in of the standard deduction for the state’s lowest earners, who currently receive a smaller standard deduction based on their income. The change would allow them to receive the full benefit regardless of income.

Itemized deductions would become a thing of the past

Some taxpayers choose to itemize their deductions by listing eligible expenses to increase the amount of their income that is not taxable. This method has become increasingly unpopular since the 2017 federal tax law — most people take the standard deduction — and Maryland would end it under Moore’s tax plan.

Two new tax brackets would cover high earners

For single filers, income over $500,000 would be taxed at 6.25%, and income over $1 million would be taxed at 6.5%. This is (partly) how Maryland will make up some of the gap to fill a projected $3 billion budget deficit. Most of the revenue raised by tax increases will come from households earning $700,000 per year and above, officials said.

The four lowest income brackets will be combined

This includes single filers who earn up to $100,000 and married couples who earn up to $150,000. They would pay a tax rate of 4.7%.

The child tax credit would be expanded

Currently, if you make just $1 over the income limit for the child tax credit, you’re no longer eligible. Under Moore’s plan, the tax credit would be phased out as families earn more income instead of dropping off a “cliff” when they hit the income limit.

The inheritance tax would go away

Maryland is the only state that has both an inheritance tax and an estate tax, administration officials said. Moore’s plan would offset eliminating the inheritance tax by lowering the estate tax exemption to $2 million from $5 million.

Some capital gains income would pay a 1% surcharge

The surcharge on profits earned from the sale of investments, real estate or other assets, which would last for four years and only apply to “high-income households,” would help pay for economic growth initiatives. “There are numerous policies at the federal level that result in lower taxes on capital income than on wage income earned by workers,” the administration explained in its budget proposal.

Righting an ‘upside-down’ system or pushing out the wealthy?

Opponents of the tax plan, including Republicans in the Maryland legislature, worry that raising tax rates on high earners will push them to leave the state, potentially taking job opportunities with them.

“We strongly believe that most Marylanders and most Maryland job creators feel they’re already pretty heavily taxed,” said Del. Jason Buckel, the minority leader in the House of Delegates.

“We’re going to fight hard to make sure that we can get a budget that’s balanced, a budget that’s fair and reasonable, but doesn’t put more of that burden on our private sector economy,” he said.

Fair Share Maryland, a coalition that advocates closing corporate tax loopholes and other changes to the state’s tax code, said the proposal makes the state’s tax system more equitable.

“Maryland’s tax system has been upside down with working families bearing too much of the responsibility for funding public services,” said Benjamin Orr, who leads the Maryland Center on Economic Policy. “Gov. Wes Moore’s proposed budget moves toward righting how we pay for what we value in our state and communities.”