Baltimore local tax guide
Who pays Baltimore's local tax
Only Baltimore City residents pay the city's 3.2%, and they pay it on all their Maryland taxable income, even if they work in Towson, Columbia, or Washington. Baltimore has no commuter tax, so a Baltimore County or Anne Arundel County resident working downtown pays only their own county's rate. Workers from Washington, D.C., Virginia, and West Virginia who keep no Maryland home generally owe no Maryland income tax on their wages, and Pennsylvanians from York County can claim exemption from Maryland local withholding.
How Baltimore City's income tax works
Maryland counties and Baltimore City add a local income tax to the state tax, and Baltimore, with about 553,000 residents, is treated as a county for this purpose. Its rate is 3.2% for 2026, the same as surrounding Baltimore County but administered as a separate jurisdiction.
The city rate is applied to Maryland taxable income, the figure left after Maryland's standard deduction and personal exemption, not to gross pay. The Comptroller of Maryland collects it on the same Form 502 as the state tax, so city residents file no separate local return.
Worked example: $75,000 in Baltimore
A single filer earning $75,000 subtracts Maryland's $3,400 standard deduction and $3,200 personal exemption, leaving $68,400 of taxable income. Maryland's brackets produce $3,197 of state tax, and the city's 3.2% on that same $68,400 adds $2,189. With $7,670 in federal tax, $4,650 in Social Security, and $1,088 in Medicare, take-home pay is $56,207, about $4,684 a month.
Living outside any local income tax, the same worker would keep $58,395, so city residence costs $2,189 a year. Someone who works in Baltimore but lives elsewhere sees $0 of city tax on this page, though their home county will charge its own rate.
Withholding for city residents
Form MW507, Maryland's withholding certificate, asks for your county of residence; city residents enter Baltimore City so the employer withholds the 3.2% local piece along with state tax. If you move into the city, update MW507 right away. Form 502 uses your taxing area as of December 31, so a mid-year move into Baltimore can mean a balance due if withholding lagged.
Commuters from York County, Pennsylvania, have their own line on MW507 claiming exemption from Maryland local tax. Pennsylvania residents also claim exemption from the state portion if they keep no Maryland home for 183 days or more.
Baltimore compared with other Maryland cities
At 3.2%, Baltimore matches Montgomery and Howard counties, so residents of Rockville, Silver Spring, and Columbia pay the same $2,189 at $75,000. Annapolis residents pay $298 less under Anne Arundel County's graduated rates, and Frederick residents $164 less. Compare on the Annapolis calculator, the Columbia calculator, or the Maryland state page.
Tips for Baltimore paychecks
Enter Baltimore City, not Baltimore County
They are separate taxing areas on MW507 and Form 502. Picking the wrong one sends your local tax to the wrong government, even though both charge 3.2% for 2026.
Pre-tax savings lower the city tax
Traditional 401(k) and 403(b) contributions come out before federal adjusted gross income, Maryland's starting point, so they reduce both state and city tax.
Moving to the county? Watch December 31
Your taxing area on December 31 sets the local tax for the year, so a move out of the city late in the year changes which jurisdiction you pay for that whole year.