Cost of Living in Maryland 2025: A Detailed Overview

Maryland offers a vibrant lifestyle with its stunning Chesapeake Bay views, proximity to Washington, D.C., and thriving job market. But how much does living here really cost? Whether you’re planning to move, retire, or just want an update, here’s a detailed guide to understanding Maryland’s cost of living in 2025.

How Expensive is Maryland to Live in?

Maryland’s cost of living is about 13% higher than the national average, making it one of the pricier states in the U.S. Housing, transportation, and healthcare are the main contributors to these costs. Despite this, Maryland remains desirable thanks to its robust economy, competitive wages, and access to key metropolitan areas.

Maryland Cost of Living Index (2025)

(Stats sourced from the U.S. Bureau of Economic Analysis)

Now, let’s break down each major area of expense.

Housing Costs in Maryland

Housing plays a significant role in Maryland’s elevated cost of living. Whether renting or buying, you’ll likely pay more than the national average (especially near hubs like Washington, D.C., or Baltimore).

Maryland Home Prices (2025)

• Average home price: $429,000 (U.S. average is $375,000)
• Median rent for a 1-bedroom: $1,800/month
• Median rent for a 2-bedroom: $2,200/month

The priciest areas include Bethesda, Rockville, and Annapolis, while more affordable options like Hagerstown and Cumberland offer opportunities for budget-conscious buyers or renters.

Property Taxes

Maryland’s average property tax rate is 1.06%, ranking high nationally. While this adds to living costs, Maryland does not levy an estate tax, which benefits retirees and high-net-worth individuals.

Food & Grocery Costs in Maryland

Grocery shopping in Maryland is about 7–10% more expensive than the national average for staples like milk, eggs, and bread.

Average Grocery Prices (2025)

Dining out can also be pricey. A meal at a mid-range restaurant typically costs $20-$25 per person, while a fine dining experience for two can range from $80-$100.

Transportation Costs in Maryland

Maryland boasts a robust public transportation system, particularly in Baltimore and the Washington, D.C., metro area. However, driving comes with its own expenses.

• Average gas price: $3.85 per gallon
• Monthly transit passes through the Maryland Transit Administration (MTA): $77
• Annual car insurance average: $1,750

Commuting costs can significantly impact your budget, especially if you work in or around D.C.

Healthcare Costs in Maryland

Healthcare in Maryland is slightly cheaper than the national average, but individual costs depend on your plans and providers.

Taxes in Maryland

Maryland is known for relatively high taxes, especially its state income tax rates, which range from 2% to 5.75% depending on income.

Breakdown of Maryland Taxes

• State Income Tax: 2%-5.75%
• Sales Tax: 6% (no additional local sales taxes)
• Property Tax: 1.06%

On the bright side, Maryland offers numerous tax credits and deductions designed for retirees and business owners.

Utilities and Miscellaneous Costs

Utility bills in Maryland are around 6% higher than the national average, varying greatly between summer and winter seasons due to heating and cooling needs.

Also read: The Most Expensive House in America: A Deep Dive Into Luxury Real Estate

Average Monthly Utility Bills (2025)

Best Places to Live in Maryland Based on Affordability

Your choice of city can significantly influence your cost of living. Here’s a quick comparison:

• Most Affordable Cities
• • Hagerstown – Median home price: $250,000
  • Cumberland – Median home price: $200,000
  • Salisbury – Median home price: $275,000
• Most Expensive Cities
• • Bethesda – Median home price: $950,000
  • Annapolis – Median home price: $750,000
  • Rockville – Median home price: $650,000

Is Maryland Right for You?

Living in Maryland isn’t cheap, but for many, its high median salary (approximately $75,000/year), strong job market, and coastal lifestyle make the price worth it.

• Move to Maryland if you value proximity to D.C., a thriving economy, and access to stunning natural beauty.
• Consider alternatives like Pennsylvania or Virginia if lowering taxes and the cost of living is a top priority.

FAQs About the Cost of Living in Maryland

1. Is Maryland more expensive than Virginia?

Yes, Maryland generally has higher home prices and property taxes compared to Virginia.

2. What is the cheapest place to live in Maryland?

Cumberland and Hagerstown are among the most affordable places in the state.

3. How much do you need to live comfortably in Maryland?

A single person needs $50,000–$60,000 per year, while a family of four requires $90,000+ per year.

4. Does Maryland have high property taxes?

Yes, Maryland’s 1.06% property tax rate is above average.

Final Thoughts

Living in Maryland can be a rewarding experience if you’re prepared for its costs. From affordable housing options in cities like Hagerstown to higher-end lifestyles in places like Bethesda, Maryland caters to various preferences and budgets.

Looking to make Maryland your new home? Start planning today by exploring neighborhoods, comparing housing prices, and creating a smart financial plan to make the most of your experience.

Also read: Top 10 U.S. Cities for Affordable First-Time Home Buying Under $250,000