Maryland, known as the "Old Line State", is an expensive Mid-Atlantic state with high incomes near Washington D.C.. Here is everything you need to know about the cost of living in the Old Line State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Maryland for a single person earning the median income of $90,200/year:
Each category shows how Maryland compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Maryland.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Maryland.
The most popular cities for residents and newcomers in Maryland:
Housing is the single biggest expense in Maryland, as it is everywhere. The median home price in Maryland is $395,000, and the median rent for a one-bedroom apartment is $1,550/month. With a housing cost index of 138, Maryland housing is 38% more expensive than the national average.
Housing affordability is a real challenge in Maryland. Many residents spend well over 30% of their income on housing. Consider looking at suburbs or smaller cities within the state for significantly lower costs.
Maryland has a state income tax rate of 5.75%. On the median household income of $90,200, you will pay approximately $5,187/year in state income tax ($432/month). This is a moderate rate that most households can absorb.
The average single person in Maryland spends approximately $440/month on groceries. A family of four can expect to spend $1,100-$1,320/month. The food cost index of 104 means groceries in Maryland are 4% above the national average.
Gas prices in Maryland average $3.35/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $2,010/year in fuel costs.
Maryland healthcare costs are 3% above the national average (index: 103). The average annual healthcare cost per person in Maryland is approximately $6,180 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Maryland averages $1,350/month ($16,200/year). This is a significant expense that rivals rent in many areas. Many families in Maryland find that one parent staying home is more cost-effective when two or more children need daycare.
Maryland is a higher-cost state, but the higher expenses often come with higher incomes, better infrastructure, and more job opportunities. The median household income of $90,200 helps offset the 18% premium on living costs.
See all Maryland financial calculators:
Maryland (MD) has a cost of living index of 118, meaning it is 18% more expensive than the US average. Housing is the biggest factor with an index of 138. The median rent is $1,550/month and the median home price is $395,000. Maryland ranks #43 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Maryland is approximately $117,260/year ($9,772/month). For a family of four, aim for $198,440/year. This covers housing at 30% of income, groceries ($440/mo), transportation, healthcare, and a 15% savings rate. The median household income in Maryland is $90,200.
The median rent for a one-bedroom apartment in Maryland is approximately $1,550/month. A two-bedroom averages $2,093/month. Rent varies significantly by city: Baltimore, Columbia, Germantown are the most popular metro areas. Housing costs in Maryland are above average — budget carefully.
Maryland is a more expensive state (COL index 118), but offers strong job markets and high median incomes ($90,200). Popular areas include Baltimore, Columbia, Germantown.
The most affordable areas in Maryland are typically smaller cities and rural areas away from the major metros. Within Maryland, costs can vary 20-40% between the most expensive city (Baltimore metro) and more affordable areas. Silver Spring and Annapolis tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Maryland for a single person is approximately $440 ($1,100 for a family of four). Maryland food costs are 4% above the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Maryland is approximately $155. Total utilities (electric, gas, water, internet) average $341/month. Maryland utilities are 9% above the national average. Utility costs are manageable for most households.
Maryland has a state income tax rate of 5.75%. On the median household income of $90,200, that is approximately $5,187/year in state income tax. This is a moderate rate near the national average.