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Rank #6 · MD

Maryland

Maryland's high cost is concentrated in DC-suburb counties — Montgomery, Howard, Prince George's — where federal-worker wages and tight housing inventories elevate prices well above the rest of the Mid-Atlantic.

Cost index
124
Housing index
154
Median home
$425K
1BR rent
$1,750
Median income
$98K
Top income tax
5.75%
Sales tax
6%
Avg. gas
$3.42

Cost breakdown by category

All values indexed to 100 = US average.

Housing154
Groceries109.9
Utilities110.7
Transportation105.4
Healthcare90.6

Why Maryland is expensive

  • 01DC-area housing demand spilling into Bethesda, Silver Spring, Rockville.
  • 02Local ('piggyback') income taxes on top of state tax (up to 3.2%).
  • 03High auto-insurance premiums in Baltimore and PG County.
  • 04Premium suburban school districts capitalized into home prices.

Metro snapshots

Bethesda
Median home ~$1.05M; among the wealthiest US zip codes.
Baltimore
Median home ~$215K; lowest in the state.
Frederick
Growing commuter alternative; median home ~$465K.

More affordable alternatives in Maryland

HagerstownSalisburyCumberland
Pro tips

Surviving Maryland on a budget

  • Counties west of Frederick offer DC-commute MARC access at half the housing cost.
  • Maryland 529 contributions deduct up to $2,500 per beneficiary, per account holder.
  • Shop auto insurance every renewal — Baltimore-area rates vary widely by carrier.
CostlyStates

An editorial atlas of the most expensive states to live in, updated annually with BEA, MERIC, and Census data.

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Sources
  • BEA Regional Price Parities
  • MERIC Cost of Living Index
  • US Census ACS 5-Year
  • Tax Foundation State Data
© 2026 CostlyStates. Editorial use only.Figures reflect 2024–2026 reporting periods.