CPA for Baltimore, MD Clients: Remote Tax, Payroll and Accounting

Our firm is based in Naperville, Illinois, and every Baltimore-area engagement is remote; we have no office in Maryland. A Baltimore return stacks several layers on the same income: a graduated state tax, a local income tax set by your jurisdiction, and, for business owners, an entity-level tax whose rate rose for 2025. Property tax runs on a separate state-managed calendar. This page covers Baltimore City and Baltimore, Howard and Anne Arundel counties.

Maryland income tax: state brackets, county tax and 2025 changes

The Comptroller's December 22, 2025 tax alert explains the 2025 law. The 5.75% bracket now covers $250,001 to $500,000 for single filers ($300,001 to $600,000 for joint filers), and the two higher brackets sit above it. The standard deduction rose to $3,350 for single filers and $6,700 for joint filers for tax year 2025, with no income-based phase-in. Itemized deductions are cut by 7.5% of federal adjusted gross income above $200,000 ($100,000 if married filing separately).

The county tax goes on top. The Comptroller's 2025 withholding guide lists 3.20% for Baltimore City, Baltimore County and Howard County. Anne Arundel taxes a single filer's first $50,000 of Maryland taxable income at 2.70%, the next $350,000 at 2.94% and the rest at 3.20% (joint thresholds are $75,000 and $480,000). The tax alert lists only Allegany and Kent counties as changing for 2026, and it lets counties go as high as 3.30%. Nonresidents have no local rate, but the guide says an additional state tax is withheld at 2.25%, the lowest county rate, from nonresidents who work here.

The pass-through entity tax for owners and contractors

Consultants and contractors who work through an S corporation or LLC, and owners of group practices, can ask whether Maryland's pass-through entity (PTE) tax fits. For periods beginning after 2024 the rate is 8.75% on individual and fiduciary members' shares and 8.25% on entity members' shares. Form 511E explains that the choice is made with the entity's first filing of the tax year and is irrevocable. Box A means paying on all members' shares and filing Form 511; Box B means paying only for nonresident members and filing Form 510. Form 510/511E is due on the 15th day of the fourth month after year-end, and extensions run up to seven months for S corporations and up to six months for other pass-through entities. Whether the election helps depends on the federal state and local tax deduction limit; see our SALT deduction guide.

Property tax in Baltimore City and the three counties

Maryland's State Department of Assessments and Taxation (SDAT) sets values; local governments set rates. SDAT's table for 2026-2027 bills lists real property rates per $100 of assessed value of $2.2480 in Baltimore City, $1.1000 in Baltimore County, $1.0440 in Howard County and $0.9680 in Anne Arundel County, plus a $0.1120 state rate. Baltimore City's rate is about double the county's. The Homestead Tax Credit limits yearly growth in a home's taxable assessment, and the local caps are 4% in the city and Baltimore County, 5% in Howard County and 2% in Anne Arundel County; the statewide ceiling is 10%.

To contest a value, use SDAT's online form within 45 days of the date on the notice. If SDAT's decision does not satisfy you, you have 30 days from that decision to appeal to the Property Tax Assessment Appeal Board for your county or the city. Because the clock starts on the notice date, read the date first.

Pending on November 3, 2026: none of the three statewide questions changes a tax rate. Baltimore City voters will see Question F, a charter amendment that, among other budget changes, would move the job of estimating revenue and formulating annual property tax rates from the Board of Estimates to the Finance Department, and Question I, which would create a Baltimore Baby Fund and require a yearly city contribution of $0.03 for every $100 of taxable property value. The city and Baltimore County also have bond questions. The outcomes are not known as of October 25, 2026.

Employers, healthcare staff and contractors

Maryland employers withhold state and county tax and must give employees a wage statement showing Maryland tax withheld by January 31; the annual reconciliation, Form MW508, is due the same date. See local payroll taxes.

Many Baltimore households earn income from hospital systems, universities such as Johns Hopkins, or federal contracts. A physician or researcher with consulting income on top of a salary may owe estimated payments sooner than expected, because for single filers the 5.75% bracket starts at $250,001 and the new 6.25% bracket starts at $500,001. A contractor on an LLC should decide on the PTE election before the entity's first filing of the year, because that is when it is made. See physicians and healthcare professionals.

The Indian-American community and US-India tax in Baltimore

The Baltimore-Columbia-Towson metro area counts about 49,300 residents who are Asian Indian alone or in combination with another group, about 1.7% of the population (American Community Survey 2020 to 2024 5-year, Table B02018). Howard County has about 23,800 (7.1%), Baltimore County about 12,300 (1.4%), Anne Arundel County about 5,100 (0.9%) and Baltimore City about 4,600 (0.8%).

Four recurring tax issues for Maryland households are:

• Reporting NRE and NRO accounts on the FBAR and the account rules.
• First-year status for researchers and clinicians arriving on J-1 or H-1B visas; see residency and dual-status rules.
• Provident fund balances, covered in our EPF guide.
• Selling family property in India. A large gain may meet Maryland's 2% tax on net capital gains above $350,000 of federal adjusted gross income, which has exceptions; see selling property in India.

How we can help

Remote work here means secure document upload, phone calls and video meetings. Typical engagements include Maryland resident, part-year and nonresident returns, county tax checks for people who move, a review of the PTE election before estimates begin, payroll with county withholding, and replies to Comptroller or IRS notices. If a matter calls for a Maryland-licensed professional, or someone who can appear in person before an appeals board, we will say so. Our Maryland and Washington DC metro pages have more.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.