United States
Cost of living in Maryland
Cost of living in Maryland registers a Regional Price Parity of 105.0, ranking eighth nationally at 5 percent above the US average. The state's proximity to Washington, DC anchors demand in the suburbs of Montgomery and Prince George's counties, where federal government employment, defense contracting, and professional services sustain high household incomes and correspondingly high housing prices. Maryland introduced two new top income tax brackets in 2025: 6.25 percent on income between 500,001 and one million dollars, and 6.5 percent above one million, representing a meaningful increase from the prior structure. The state sales tax is a flat 6.0 percent with no local additions at the state level, though counties separately levy local income taxes on top of the state rate, which is a layered cost that residents must account for beyond the headline figures.
Price level
105
US = 100
National rank
8th
of 51, dearest first
Income tax
6.5%
top rate
Sales tax
6%
state base rate
What your salary is worth in Maryland
Because prices here sit at 105 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in Maryland to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $63,000 | $105,000 |
| California (dearest) | $56,911 | $94,851 |
| Arkansas (cheapest) | $72,497 | $120,829 |
Compare Maryland with anywhere in the US
To live the same in California you need
$73,800
to match $70,000 in Maryland
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
Maryland in context
The county-level income tax is a distinguishing feature of Maryland's fiscal structure. Each of the 24 counties and Baltimore City sets its own local income tax rate, generally ranging from 2.25 to 3.2 percent on top of the state rate. A resident of Montgomery County, for example, faces a combined state plus local income tax rate materially higher than the state figures alone would suggest. Housing prices vary considerably from the DC-adjacent suburbs to rural Western Maryland and the Eastern Shore, where prices can be 30 to 50 percent lower than in the core metro counties. The standard deduction increased to 3,350 dollars for single filers in 2025, a modest figure that leaves most wage income fully exposed to the rate schedule. Maryland suits households with strong connections to the federal employment ecosystem or the Baltimore-Washington healthcare and biotech corridor, where compensation is calibrated to regional costs. Those with remote work flexibility can access lower prices by locating in more rural counties while maintaining Maryland's other advantages.
The closest state above Maryland on price is Massachusetts at 105.8. Just below sits New Hampshire at 104.2.
Frequently asked questions
Is Maryland expensive to live in?
Maryland sits at a price level of 105 where the US average is 100, so a typical basket of goods and services costs about 5% more than the national norm. That ranks it 8th most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in Maryland?
To match the buying power of $60,000 earned at the US average, you would need about $63,000 in Maryland. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does Maryland charge?
Maryland applies a top state income-tax rate of 6.5% and a base state sales tax of 6%. Single-filer schedule for 2025. Two new top brackets added effective Jan 1, 2025: 6.25% on $500,001-$1,000,000 and 6.50% over $1,000,000 (Budget Reconciliation and Financing Act of 2025). Single standard deduction increased to $3,350 (income-based phase-in eliminated). State sales tax 6%; no local sales tax. Counties levy separate local income taxes. Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.