Maryland Gov. Martin O'Malley (D). (AP Photo/Patrick Semansky)

The unemployment insurance tax rates paid by most Maryland businesses will be cut by up to 70 percent in January, Gov. Martin O’Malley (D) announced Wednesday.

The adoption of the lowest of five possible brackets under Maryland’s tax system was made possible by a recovering state economy, O’Malley said at an event held with business leaders at the Maryland Chamber of Commerce.

While the rates paid by individual businesses vary dependent on their employment history, most can expect to pay significantly less next year. A business that paid $85 per employee this year, for example, can expect to pay $25.50 per employee next year, state officials said.

Kathy Snyder, president of the Maryland chamber, said she was “thrilled with this news” and called it “a big day for employers in Maryland.”

Under Maryland’s tax system, the state sets rates based on the strength of the unemployment insurance trust fund to which employers contribute. When the economy is stronger, there are fewer funds needed to make payments from the fund.