Cost of Living in Maryland

Published: September 16, 2020 12:21 am

Last Updated: September 16, 2020 9:18 am

Living in Maryland is more expensive than it is on average across the U.S. as a whole. According to data from the Bureau of Economic Analysis, goods and services in the state cost 8.4% more than they do on average nationwide. Compared with all other states, Maryland has the sixth highest overall cost of living.

In general, living in dense, urban metro areas is more expensive than living in more rural areas -- however this is not always the case. Maryland is home to five metropolitan areas. The most expensive in the state is the Baltimore-Columbia-Towson metro area, where the cost of goods and services is 6.7% higher than the national average and 1.7% lower than the statewide average.

Maryland Housing Costs

Housing is one of the largest components of cost of living. In Maryland, the typical home is worth $305,500, $100,600 more than the national median home value of $204,900. Across the state, the median price of a home built in 1939 or earlier is $234,300, while the median value of a home built in 2014 or later is $462,500.

The typical renter in Maryland spends $1,357 a month on housing, $334 more than the $1,023 national median monthly rent. Monthly rent for a one-bedroom in the state is $1,122, while the typical rent for a unit with five or more bedrooms is $2,060.

Across the state, 33.2% of occupied homes are rented, less than the 36.2% national average and the 23rd lowest renter rate of any state.

Maryland Transportation Costs

Transportation can also be a significant component of cost of living. In Maryland, 82.9% of commuters drive to work, compared to 85.5% of commuters nationwide. On average, the typical motorist in the state drives 9,966 miles a year. Taking into account average fuel economy and the average cost of gas -- regular fuel cost an average of $2.28 a gallon in Maryland in mid-2020 -- the average motorist in the state can expect to spend $939 on gas alone in one year.

Other transportation costs, like car insurance premiums, can vary by state. In Maryland, the average car insurance premium is $1,684, more than the $1,517 national average, according to data from Insure.com. And according to data from the EPI, the average single adult in the state spends $9,296 a year on transportation.

Maryland Health Care Costs

Out-of-pocket costs and insurance premiums for health care -- assuming at least a basic level of health insurance coverage -- are relatively low in Maryland. Average health care costs for a single adult in the state total $3,549 per year, compared to the national average of $4,266. For a family of four, average annual health care costs total $10,777 -- $2,173 less than the comparable national average of $12,950.

Maryland Food Costs

Food is another every day expense that has a significant impact on the overall cost of living in an area. Data from the U.S. Department of Agriculture shows that the cost of food varies from state to state.

In Maryland, a single adult spends an average of $3,342 on food annually, and a family of four spends $9,652 on average. For context, the nationwide average annual food expenditure is $3,240 for a single adult and $9,354 for a family of four. These estimates are calculated for a nutritionally adequate diet of food purchased at a grocery store for at home preparation.

Maryland Child Care Costs

For families, child care adds thousands of dollars to overall annual spending. The average annual cost of child care for a 4 year old child in Maryland is $10,001, well above the national average of $8,903. Similarly, it costs an average of $16,167 to care for a 4 year old child and an 8 year old child per year in Maryland compared to the national average of $15,853.

Maryland Taxes

Few expenses vary as much from state to state as taxes. Accounting for state and federal income taxes, as well as Social Security contributions and Medicare payroll, the average adult working in Maryland pays $7,992 annually in taxes -- above the national average of $6,542.

Excluding federal taxes and incorporating state and local taxes such as property and sales taxes -- the state and local tax burden in Maryland is greater than the average across the U.S. as a whole. Per capita state tax collections in Maryland come out to $3,711 per year, compared to the $3,151 average across all states.

Cost of Living by County or County Equivalent

Just as cost of living varies from state to state, it also varies from place to place within states. In Maryland, Calvert County, home to the unincorporated town of Chesapeake Ranch Estates-Drum Point, has the highest overall cost of living for a family of four at $106,549 per year, well above the statewide average of $91,928 per year.

Meanwhile, Garrett County is the least expensive place in Maryland. The average annual cost of living for a family of four in the area is just $70,488, $21,441 less than it is across the state as a whole. Mountain Lake Park is the most populous community in Garrett County.

Note that monetary figures are rounded to the nearest dollar and calculated differences may not always add up perfectly to the nearest dollar.