What is the cost of living in Maryland?
Wondering about the cost of living in Maryland? This article summarizes everything you need to know, from tax rates to healthcare costs.
Summary
According to research, the cost of living in Maryland is $2,216, which is 1.1 times higher than the US average.
Utility costs play a significant role in Maryland's overall cost of living; the average spend on utility bills in Maryland comes to approximately $450.
Baltimore residents pay over $343 on average each month for groceries and food.
Families in Maryland currently pay just over $11,00 per year for childcare for one child.
Speak to a financial advisor about getting and staying on top of your finances.
What is the average yearly cost of living in Maryland?
Maryland is a Mid-Atlantic state best known for its waterways and the fishing accompanying them. It is home to over 6.5 million people.
According to research, the cost of living in Maryland is $2,216, which is 1.1 times more expensive than the average in the United States
According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 45th in a list of states with the lowest to the highest cost of living.
Staying in control of your finances and maintaining a solid financial plan is essential regardless of where you live. A financial advisor can help you achieve this. By answering a few simple questions, Unbiased can connect you to a financial advisor perfectly suited to meet your needs. Get started here.
How much does housing cost in Maryland?
As of March 2023, the average home value in Maryland is estimated to be around $387,872, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state. Here are some examples of typical home prices based on Zillow's data:
| City | Average Home Value |
|---|---|
| Baltimore | $177,234 |
| Columbia | $464,870 |
| Germantown | $402,867 |
| Silver Spring | $512,609 |
| Waldorf | $412,115 |
The monthly rental price ranges across the state for those considering renting in Maryland. For example, in Maryland, the average rent price is $2,203.
How much are utilities in Maryland?
Utility costs play a significant role in Maryland's overall cost of living. According to Forbes, the average monthly cost is around $449.
| Utility | Average cost in Maryland |
|---|---|
| Energy bill | $127.62 |
| Monthly water bill | $46 |
| Internet | $30 |
| Natural gas | $80 |
| Phone bill | $114 |
| Streaming | $52.25 |
How much do groceries and food cost in Maryland?
When it comes to groceries and food costs, Maryland generally aligns with prices found elsewhere in the United States.
According to Zippia, those in Baltimore pay over $343 on average each month.
According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.
How much are transportation costs in Maryland?
Transportation costs, including gas prices and vehicle maintenance, impact Maryland's overall cost of living.
According to MIT, a single adult with no children can expect to pay upwards of $4,400.
Gas prices in Maryland are typically in and around the national average. At the time of writing, Maryland was just below the national average. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
How much does healthcare cost in Maryland?
Understanding healthcare expenses is crucial when considering the cost of living.
The specific healthcare costs in Maryland can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates.
MIT estimates:
| Scenario | Annual healthcare expenditure |
|---|---|
| One adult, no children | $3,157 |
| One adult, one child | $9,138 |
| One adult, two children | $9,132 |
| Two adults (one working), no children | $7,200 |
| Two adults (one working), one child | $9,193 |
| Two adults (one working), two children | $9,118 |
| Two adults (two working), no children | $7,200 |
| Two adults (two working), one child | $9,193 |
| Two adults (two working), two children | $9,118 |
Check out the average cost of health insurance in the US here.
How much does childcare cost in Maryland?
Families in Maryland currently pay around $11,177 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state.
How much tax will I pay if I live in Maryland?
Maryland’s state income tax rates range between 2% and 5.75%.
Here's a comparison of income tax rates among some neighboring states:
| State | Income Tax Rates |
|---|---|
| Maryland | 2% - 5.75% |
| Pennsylvania | Flat rate of 3.07% |
| Delaware | No state income tax |
| Virginia | 2% - 5.75% |
| West Virginia | 3% - 6.5% |
The state sales tax rate in Maryland is 6%. However, it's important to note that additional local taxes are imposed by various counties and municipalities in Maryland, which can vary. Therefore, the combined sales tax rates, including state and local taxes, can range from 6% to 9.5%, depending on the specific location within the state.
You could also check out the complete guide to taxes in Maryland here.
The bottom line
The amount of money needed to live comfortably in Maryland can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Maryland. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
Writer
Charlie Barton is a writer at Unbiased. He has been writing about personal finance and investing since 2017, with extensive knowledge of platforms and products. Charlie has a first-class degree from the London School of Economics.