Cost of Living in Maryland

(Last Updated – September 3,2025)

Situated in the middle of the Eastern seaboard, Maryland is home to more than 6 million people, plenty of natural beauty, and several prominent U.S. cities, including Baltimore, Bethesda, and its capital, Annapolis. Washington, D.C. is also in close proximity.

If you’re considering a move to this culturally diverse state, this may help as you make your decision: According to a recent University of Maryland poll, more than 50% of Marylanders think it’s an excellent or good state to raise a family, access health care services, and get a quality K-12 education. When it comes to work opportunities, 46% think the state is an excellent or good place to find a well paying job.

Maryland can be expensive though, depending on where you settle. Read on for a breakdown of the average cost of living here to see if a move is right for you.

What’s the Average Cost of Living in Maryland?

Average Cost of Living in Maryland: $56,052

As mentioned above, Maryland isn’t a cheap place to live. It ranks 46th in lowest cost of living in the U.S. (meaning it’s one of the highest), according to the 2025 Cost of Living Index from the Missouri Economic Research and Information Center (MERIC).

MERIC reports the overall cost of living index in Maryland is 114.9. To put that in perspective, an index below 100 represents a lower cost of living than the national average, while a higher number indicates a higher cost of living.

The latest data from the Bureau of Economic Analysis reports the average personal consumption expenditures total $56,052 per person in Maryland. Let’s take a closer look at how that spending breaks down in the Old Line State:

Category	Average Annual Per-Capita Cost in Maryland
Housing and Utilities	$10,839
Health Care	$8,838
Food and Beverages (nonrestaurant)	$3,832
Gas and Energy Goods	$1,263
All Other Personal Expenditures	$31,280

Based on the figures above, the average monthly expenses for one person in Maryland come out to around $4,671.

Housing Costs in Maryland

Average Housing Cost in Maryland: $1,379 to $2,606 a month

Maryland has 2,588,397 housing units, according to the latest data from the U.S. Census Bureau. Zillow reports the average home value in the state as of August 2025 is $435,024, compared to the average U.S. home value of $368,581.

Whether you’re thinking of renting or buying a home in Maryland, here’s what you can expect to spend on housing per the U.S. Census Bureau:

•  Median monthly mortgage cost: $2,301

•  Median studio rent: $1,523

•  Median one-bedroom rent: $1,379

•  Median two-bedroom rent: $1,679

•  Median three-bedroom rent: $1,875

•  Median four-bedroom rent : $2,205

•  Median five-bedroom or more rent: $2,606

•  Median gross rent: $1,662

Check out the average home value in these Maryland towns and cities as of August 2025, courtesy of Zillow:

Maryland Area	Average Home Value
Baltimore	$189,391
Frederick	$471,538
Silver Spring	$554,627
Ellicott City	$744,399
Glen Burnie	$396,420
Gaithersburg	$535,375
Bethesda	$1,137,069
Rockville	$619,798
Dundalk	$225,684
Bel Air	$465,093
Towson	$474,909
Bowie	$531,380
Cumberland	$152,410

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Utility Costs in Maryland

Average Utility Costs in Maryland: $419.45 per month

Utility bills account for part of your monthly expenses. Take a look at what a typical Maryland resident pays per month:

Utility	Average Maryland Bill
Electricity	$148.45
Natural Gas	$80
Cable & Internet	$131
Water	$60

Sources: U.S. Energy Information Administration Electric Sales, Revenue, and Average Price, 2023, Statista.com, “Average monthly residential utility costs in the United States in 2023, by state,” DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report 2023; and Rentcafe.com, What is the Average Water Bill?

Groceries & Food

Average Food and Beverage Costs in Maryland: $319 per month

How much you’ll spend on food each month in Maryland depends upon where you shop and how many people are in your household. On a whole, the cost of living index for groceries is 107.5, which is slightly above the national average.

The Bureau of Economic Analysis reports Maryland’s per-capita average annual cost of food and beverages is $3,832, which comes out to be about $319 a month. Crunching the numbers, a couple can anticipate paying $638 a month while a family of four can expect to pay $1,276 a month.

To get an idea of how Maryland compares to other cities within the same region, here’s a snapshot of the grocery items index for 2024, from lowest to highest, courtesy of the Council for Community and Economic Research.

Mid-Atlantic City	Grocery Items Index
Richmond, VA	94.2
Dover, DE	95.9
Baltimore, MD	100.5
Salisbury, DE	102.2
Philadelphia, PA	103.2
Wilmington, DE	104.3
Alexandria, VA	124.1
Bethesda, MD	130.2
Washington, DC	141.9

Below you’ll find Maryland’s average monthly grocery and food costs based on household size.

Family Size	Average Grocery and Food Costs in Maryland
Single person with no children	$391
Two working adults, no children	$716
Two adults with two children, one or two income family	$1,146
Two adults with three children, one income or two income family	$1,397

Transportation

Average Transportation Costs in Maryland: $9,803 to 18,242 per year

The majority of people in Maryland rely on private vehicles to get around. However, there are public transportation options in the more populated cities, especially Baltimore, where you can travel via bus, light rail, or subway.

Maryland transportation costs will vary depending on the size of your household. These are the estimated costs according to MIT’s Living Wage Calculator for 2025:

Family Size	Average Annual Transportation Costs in Maryland
Single person with no children	$9,803
Two working adults, no children	$11,345
Two working adults with two children	$16,444
Two working adults with three children	$18,242

Health Care in Maryland

Average Health Care Costs in Maryland: $8,838 per person, per year

When it comes to taking care of your health, the Bureau of Economic Analysis reports the annual cost of health care for an individual living in Maryland is $8,838. This comes to $736.50 a month per person.

Of course, the price you’ll pay for health care depends on your age, medical needs, and the type of health insurance you have. Residents can visit Maryland Health Connection, the state’s health insurance marketplace, to explore the various private plans offered.

Child Care

Average Child Care Costs in Maryland: $1,008 to $2,040 per child, per month

It’s no secret child care as a whole can be expensive, whether it’s to cover daycare, babysitting, or Pre-K. Here’s what CostofChildCare.org reports are the average prices broken down by type of child care:

Type of Child Care	Average Cost Per Month, Per Child
Infant classroom	$2,040
Toddler classroom	$1,310
Preschooler classroom	$1,018
Home based family child care	$1,008

Based on the above figures, child care in Maryland can range from $12,096 to $24,480 a year. According to 2024 data from ChildCare Aware of America, the national average for childcare costs was $13,128.

Need help paying for childcare? Maryland’s Department of Education offers Child Care Scholarships for qualifying families.

Taxes

Highest Marginal Tax Rate in Maryland: 5.75%

There’s a graduated state individual income tax in Maryland, with rates ranging from 2.0% to 5.75%, according to the Tax Foundation’s State Individual Income Tax Rates and Brackets report.

Those rates are fairly low when you take into account the fact that people in Oregon are paying 9.9%, those in New York are paying 10.9% and those in California are paying 13.3% (the highest in the country).

If Maryland’s state income tax seems too high, you can always opt to live in one of the eight states with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming.

Miscellaneous Costs

The Old Line State is chock full of relaxing and fun things to do for people of all ages. After you’ve taken care of your other cost of living expenses, here are some activities you can enjoy (accurate as of June 2025).

•  A visit to the Maryland Zoo: $33 per ticket, ages 2 and older

•  A day at the beach in Ocean City: $0 and free parking

•  Admission to the National Aquarium: $49.95 for adults 21-69, $39.95 for ages 5-20, free for children age 4 or under

•  A day of hiking on the Appalachian Trail: $0 admission fees and parking

•  Fried crab-cake platter at Cantler’s Riverside Inn in Annapolis: $42

How Much Money Do You Need to Live Comfortably in Maryland?

A comfortable lifestyle will depend on your family’s needs, where in the state you live, and your chosen lifestyle. To give you some idea, MIT’s Living Wage Calculator says the average single person without children working full-time would need to make $26.17 an hour, and $45,280 a year after taxes, in order to make a “living wage.”

The latest U.S. News & World Report roundup of the Best Places to Live in the U.S. ranks Maryland as the 20th best state to live in the country, taking into account such factors as home affordability, health care, cost of living, and quality of life.

As mentioned earlier, according to 2025 figures, MERIC ranks Maryland as 46th in lowest cost of living across the country (which means it’s quite high).

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What City Has the Lowest Cost of Living in Maryland?

Fortunately, there’s no shortage of cities in Maryland where the cost of living is lower. Take a look at these three cities that are among the least costly to live, according to the Economic Research Institute (ERI):

Cumberland

If you decide to become a resident of Cumberland, you’ll experience a slower-paced city with lower housing, utility, and grocery costs. In fact, the ERI reports Cumberland is 23% less expensive to live in than the average Maryland city. Zillow reports the latest median home value in Cumberland is $152,410.

This picturesque city offers scenic views of the Appalachians and the Potomac River and plenty of parks to take in even more greenery. There’s a historic city center, an arts and entertainment district, an actual Main Street, pedestrian walkways, and lots of places to grab a bite.

Hagerstown

According to the Census Bureau, an estimated 43,909 people call this north-central Maryland city home. It’s the sixth largest city in the state and, compared to other areas of Maryland, 11% cheaper overall. According to the ERI, lower housing, food, health care, and transportation costs help make Hagerstown a cost-effective city. The median home value, per Zillow, is $303,512, as of 2025.

Hagerstown provides plenty of culture and things to do in your free time, including visiting breweries, a wine vineyard, planetarium, golf courses, and an equestrian center for horseback riding. The city also has a Maryland Crab & Oyster Trail, where you can find a plethora of seafood eateries.

Salisbury

You’ll find Salisbury in eastern Maryland, less than an hour’s drive to beach hotspot Ocean City. Home to a population of 33,616, Salisbury is the largest city in the state’s Eastern shore region.

Like Hagerstown, Salisbury is 11% cheaper than the average city in Maryland, and its housing, transportation, food, and health care costs fall below the national average. If you are looking to find a home there, the average median home value in Salisbury is $264,992.

Salisbury is known as “Maryland’s College Coastal Town,” mainly for being the location of Salisbury University as well as the University of Maryland Eastern Shore campus. You won’t be bored in Salisbury or be deprived of culture, with offerings such as the Salisbury Zoological Park, the Chesapeake Bay Maritime Museum, the Salisbury Symphony Orchestra, and a minor league baseball team, the Delmarva Shorebirds.

Helpful Resources for Future Maryland Residents