Cost of Living in Maryland — Housing, Taxes & Everyday Expenses

High incomes, federal employment, DC proximity premium

Data: 2026-Q2 · BLS · HUD · KFF

Overview

Maryland benefits from proximity to Washington DC and a large federal government workforce. Median household income is among the highest nationally but costs are significantly above average.

Housing costs

Median 1BR rent in Baltimore is approximately $1,500. Suburbs near DC (Bethesda, Rockville, Silver Spring) are $2,000-$2,500+.

1BR FMR across major Maryland cities: $1,511 – $1,511/mo (HUD FY2026)

Tax reality

6.5% top rate effective 2025 (new top brackets added, Tax Foundation)

Everyday expenses

At a cost of living index of 118, Maryland is about 18% more expensive than the national average of 100. Maryland's high nominal income is partially offset by high housing costs in DC suburbs and state plus local income taxes.

City comparison

City 1BR FMR 2BR FMR
Baltimore $1,511 $1,857

Salary reality in Maryland

$40-60k ~$3,247/mo take-home
$60-80k ~$4,423/mo take-home
$80-100k ~$5,488/mo take-home
FAQ

Cost of Living in Maryland — FAQ

What is Maryland's income tax rate?

Maryland has a state income tax rate up to 5.75% plus local county taxes averaging 2-3%, making effective rates among the higher in the mid-Atlantic region.

Is Maryland expensive?

Maryland has a cost of living index of 118, about 18% above average. DC suburbs are particularly expensive.

Related

Full Maryland Income Reality → Cheapest States All Cost of Living Guides

Income Reality Check is an educational tool, not financial advice. Your situation has more dimensions than any tool can capture.