What’s the cost of living in Maryland?

1 min readLast updated May 24, 2023by Charlie Barton

When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If Maryland is at the top of your list, here are some current statistics related to the cost of living in the state that could help you make up your mind.

The average 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

While 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.

Housing costs 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.

Typical Home Prices in Maryland (Zillow Data):

  1. Silver Spring - $512,609

  2. Columbia - $464,870

  3. Waldorf - $412,115

  4. Germantown - $402,867

  5. Baltimore - $177,234

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.

Utility costs 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.

Average Monthly Utility Costs in Maryland:

  1. Energy bill: $127.62

  2. Streaming: $52.25

  3. Monthly water bill: $46

  4. Natural gas: $80

  5. Phone bill: $114

  6. Internet: $30

Grocery and food costs 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.  

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. 

Healthcare costs 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.

Annual Healthcare Expenditure in Maryland Estimated by MIT:

  1. One adult, no children: $3,157

  2. One adult, one child: $9,138

  3. One adult, two children: $9,132

  4. Two adults (one working), no children: $7,200

  5. Two adults (one working), one child: $9,193

  6. Two adults (one working), two children: $9,118

  7. Two adults (two working), no children: $7,200

  8. Two adults (two working), one child: $9,193

  9. Two adults (two working), two children: $9,118

Childcare costs 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. 

Taxation in Maryland

Maryland’s state income tax rates range between 2% and 5.75%.

Taxes in Maryland compared to neighboring states:

  1. Maryland income tax rate: 2% - 5.75%

  2. Pennsylvania income tax rate: Flat rate of 3.07%

  3. Delaware income tax rate: No state income tax

  4. Virginia income tax rate: 2% - 5.75%

  5. West Virginia income tax rate: 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.

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.


Charlie Barton

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.