Cost of Living in Maryland — Housing, Taxes & Everyday Expenses
High incomes, federal employment, DC proximity premium
Data: 2026-Q2 · BLS · HUD · KFFOverview
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
Salary reality in Maryland
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.