Baltimore, MD Taxes 2025
Complete local tax guide and OBBBA calculator
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Baltimore Tax Overview 2025
Baltimore has local income tax and high property taxes.
Local Income Tax
3.2%
City/county rate
Sales Tax
6.00%
State + local
Property Tax
2.25%
Effective rate
Median Home
$195,000
Home value
State Tax Information
Baltimore is located in Maryland (2% - 5.75% state income tax)
💼 Baltimore Local Income Tax
Baltimore imposes a local income tax of 3.2% on residents. This is in addition to any state income tax you may owe to Maryland.
Local income taxes are common in Ohio, Pennsylvania, and a few other states. They're typically withheld from your paycheck if you work in Baltimore, regardless of where you live.
Total Income Tax Burden in Baltimore
🛒 Baltimore Sales Tax 2025
The combined sales tax rate in Baltimore is 6.00%. This includes both the Maryland sales tax and any local sales taxes.
Sales tax applies to most retail purchases in Baltimore. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on Maryland law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $3.00 | $53.00 |
| $100 | $6.00 | $106.00 |
| $500 | $30.00 | $530.00 |
| $1,000 | $60.00 | $1,060.00 |
🏠 Baltimore Property Tax 2025
The average effective property tax rate in Baltimore is 2.25%. Based on the median home value of $195,000, the typical homeowner pays approximately $4,388 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within Baltimore based on school district and other taxing authorities.
Estimated Annual Property Tax in Baltimore
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $4,500 | $375 | ✓ Yes |
| $300,000 | $6,750 | $563 | ✓ Yes |
| $400,000 | $9,000 | $750 | ✓ Yes |
| $500,000 | $11,250 | $938 | ✓ Yes |
| $750,000 | $16,875 | $1,406 | ✓ Yes |
| $1,000,000 | $22,500 | $1,875 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 Baltimore Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for Baltimore Residents
High combined taxes make OBBBA deductions extremely valuable.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a Baltimore resident.
Available OBBBA Deductions:
Calculate Your Baltimore Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Baltimore resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in Baltimore?
The combined sales tax rate in Baltimore is 6.00%. This includes both state and local sales taxes.
Does Baltimore have a local income tax?
Baltimore has a local income tax of 3.2%. This is in addition to any state and federal income taxes.
What is the property tax rate in Baltimore?
The average effective property tax rate in Baltimore is 2.25%. On a home worth $195,000, you'd pay approximately $4,388 per year.
How do OBBBA deductions benefit Baltimore residents?
High combined taxes make OBBBA deductions extremely valuable. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.