Income Reality in Maryland — Taxes, Housing & Salary
High incomes, federal employment, DC proximity premium
Data: 2026-Q2 · BLS · HUD · KFFIncome tax overview
6.5% top rate effective 2025 (new top brackets added, Tax Foundation)
Housing snapshot
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)
Cost of living summary
At an index of 118, Maryland is about 18% more expensive than the national average of 100.
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.
Major cities
Purchasing power context
Maryland's high nominal income is partially offset by high housing costs in DC suburbs and state plus local income taxes.
Purchasing Power Reality
What your salary feels like in other cities
Salary reality examples
Comfortable in Baltimore. Moderate to tight in DC suburbs where housing is significantly higher.
Good purchasing power in Baltimore. Comfortable in DC suburbs.
Strong flexibility statewide. Federal and defense careers provide strong earning potential.
FAQ — Income Reality in Maryland
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.
Cities in Maryland
Related tools
Cost of Living Index from C2ER. This is a picture, not a verdict.