Cost of Living in Maryland
Things cost about ▲ 5% more in Maryland than the national average.
What Things Cost in Maryland
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Maryland has the highest median household income of any state at roughly $90,000, a reflection of its proximity to Washington, D.C. and the concentration of federal government jobs, defense contractors, and biotech companies in the area. The cost of living runs about 19% above the national average, driven by housing in the D.C. suburbs (Montgomery and Howard counties are among the wealthiest in America). Baltimore offers a dramatically different cost profile: affordable by East Coast metro standards but with well-documented challenges in some neighborhoods. Western Maryland and the Eastern Shore are genuinely affordable. The state's financial picture is shaped by the federal economy, which provides stability but also inflated housing costs.
Maryland at a Glance
Taxes in Maryland
Maryland's state income tax tops out at Up to 5.75%. The combined sales tax averages 6%. Property taxes run about 0.99% of home value, which on a $395,000 median home means roughly $3,911/year.
Cities in Maryland
Ranked from least to most expensive. Index 100 = national average.
Explore Maryland
FAQ About Maryland
It depends on where. The D.C. suburbs (Montgomery, Howard, Anne Arundel counties) are significantly above the national average, with housing 30-50% higher. Baltimore city is more affordable than most East Coast metros, with median home prices around $247,400 to $395,000. Western Maryland and the Eastern Shore offer costs near or below the national average. The statewide figure of about 19% above average is heavily weighted by the D.C. corridor.
Maryland's total income tax combines state rates (2% to 5.75%) with mandatory county-level local income taxes (2.25% to 3.2%). In Montgomery County, the total can reach 8.95%. In Baltimore County, it is about 8.5%. This combined rate is one of the highest in the country and is a significant factor for high earners considering Maryland versus neighboring Virginia or more distant states.
By major East Coast metro standards, yes. Baltimore's median home price is roughly $247,400 to $395,000, far below D.C., Philadelphia, or Boston. Desirable neighborhoods like Federal Hill, Canton, and Roland Park offer character and walkability. The city has real challenges with crime in some areas and a tax rate (combined city and state) that is among the highest in Maryland, but for the right buyer, the value is genuine.