Tax Planning for Physicians in Baltimore (2026)
Every Maryland county and Baltimore City levies a local income tax collected on the state return. Baltimore City's rate is 3.2%, and Maryland's new top brackets mean high earners now pay more at the state level too.
2026 at a glance
| Baltimore City local tax | 3.2% |
|---|---|
| Maryland county range (2026) | 2.25% (Worcester) to 3.3% (Dorchester, Kent) |
| Special nonresident tax | 2.25% |
| Maryland top state rate | 6.5% over $1 million single / $1.2 million joint |
Planning priorities
- A Baltimore City physician in the top bracket pays about 9.7% combined state and local tax on the margin.
- Baltimore County, Montgomery County, Howard County and Prince George's County are also at 3.2%, so moving within the region rarely changes the local rate.
- Maryland's pass-through entity tax is available to practice owners.
- Pennsylvania and Virginia residents who work in Maryland pay the 2.25% special nonresident tax plus Maryland state tax.
See the full Maryland physician tax guide.
More physician tax guides
- Other Maryland cities: Bethesda, Rockville, Columbia, Annapolis.
- State rules: Maryland physician tax guide and all 50 state guides.
- By specialty: Surgeons, Cardiologists, Gastroenterologists, Psychiatrists and every specialty.
- Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.
Frequently asked questions
What is the Baltimore City income tax rate?
3.2% of Maryland taxable income for Baltimore City residents in 2026.
Get a tax plan built for your situation
GenWealth 360 builds proactive, tax-first plans for physicians, dentists and medical practice owners in all 50 states. Start with a conversation about your income, entity and goals.
Schedule a consultationBrowse the Resource CenterRelated guides
Sources
This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.