The Shins - Wincing The Night Away - I was surprised by exactly how much I enjoyed this album. I know it's a critical favorite but I like it anyway.
Dungen - Tio Bitar - The best Swedish psychedelic-prog-pop I purchased this year.
Porcupine Tree - Fear of a Blank Planet - they just keep getting better and better. 18 minute long songs are good.
Suzanne Vega - Beauty & Crime - A great collection of songs, brilliantly performed. And oh, that voice.
Marillion - Somewhere Else - Honestly, a mediocre Marillion album, but that still makes it one of the year's best in my book. The title track alone nearly carries the whole thing.
Fish - 13th Star - Fish, on the other hand, has probably made the best solo album of his career. Full of emotion, thematically tight while still stylistically varied, and yet one of the heaviest albums he's ever done. Splitting up with his fiance was the best thing that could have happened to him artistically.
Maria McKee - Late December - A sprawling, theatrical pop/rock masterpiece. And she can really sing as well.
Dolores O'Riordan - Are You Listening? - The former lead singer of the Cranberries with upbeat prog-pop. No, really. I liked the Cranberries well enough but this is better (although apparently closer to the later Cranberries albums which I do not have).
Rush - Snakes and Arrows - It's totally not fair that a band who's been around so long can sound so new and fresh. After the angry wall of distortion that was Vapor Trails this is a complex, melodic, and thoughtful set of songs. And made for a great tour.
Honorable mentions (since they came out this year, but are rerelases of old albums): The Warren Zevon albums Excitable Boy, Stand In The Fire and The Envoy, and the Genesis 1976-1982 box set.