Baxter fought back from 1–3 down in sets in the second round of the 2013 World Championship against Kevin Painter to level the match at 3–3. He won the first two legs of the deciding set to be one leg away from the last 16, however, Painter won four straight legs to send Baxter out. Baxter's consistent play in the eight UK Open Qualifiers in the early part of 2013, where he was a losing quarter-finalist three times and a losing semi-finalist once, saw him placed ninth on the UK Open Order of Merit. At the tournament he beat Ken MacNeil 9–8, Lee Palfreyman 9–6 and Jelle Klaasen 9–7 to face Raymond van Barneveld in the quarter-finals. Baxter came from 0–3 to lead 7–4, before van Barneveld responded to move 9–8 ahead. Baxter forced a last leg decider and missed one dart for the match to allow the Dutchman in to hit double eight for the win. Two successive first round losses in premier events followed at the European Championship (6–5 against Mervyn King) and the World Matchplay (10–1 against Andy Hamilton). At the World Grand Prix Baxter beat Colin Lloyd 2–0 in sets before losing 3–0 to Simon Whitlock.