F
34%
Overall NAT. AVG.
3%
Goods & Services NAT. AVG.
104%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Annapolis Maryland National
Cost of living134119100
Goods & Services103106100
Groceries105106100
Health care9897100
Housing204150100
Transportation10198100
Utilities111111100

An Overview of Cost of Living in Annapolis, MD

Getting a feel for the cost of living in Annapolis is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Annapolis is 134, which is 34% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

If you prioritize affordability when seeking a new place to live, Annapolis may not be your ideal choice, as it ranks among the most expensive locations in the entire United States. A very small amount of areas exhibit a cost of living at least 20% higher than the national average, and unfortunately, Annapolis falls into this category, which may not align with your preferences for a budget-friendly living environment.

When it comes to the cost of living in Annapolis, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 104% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.

Is Annapolis Affordable?

Is Annapolis an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Annapolis is 124.1% higher than the national average, while the average monthly rent prices are 57.1% higher than average. The affordability of any location can also be influenced by median income levels. Annapolis has a median household income of $87,897, which is 58.9% higher than the national average.

What Factors can Influence the Cost of Living in Annapolis?

Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Annapolis, the transportation index is 1.3% higher than the national average.

Healthcare: Healthcare costs and insurance premiums can fluctuate greatly based on the city or state. Access to healthcare facilities, out-of-pocket expenses for doctor\’s visits, dentist costs, medication costs and specialized care costs can all impact the cost of living. In Annapolis, the healthcare costs are 2.5% lower than the national average.

Subsidies: Some cities and states may extend government subsidies or aid programs aimed at reducing the cost of living for their residents. These initiatives encompass diverse forms of support, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farm subsidies. Regions with limited subsidy provisions may witness an increase in their overall cost of living.

Where is the Data From?

The Annapolis cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Annapolis is 13% higher than the Maryland average
  • The cost of living in Annapolis is 34% higher than the national average
  • Annapolis housing is 104% higher than the national average
  • Maryland general sales tax is 18% higher than the national average
  • Maryland state income tax is 11% lower than the national average

Most Affordable Places to Live in and Around Annapolis

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Compare Annapolis, MD Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$120,855$10,071$2,820$3,626
      Renters$51,681$4,307$1,206$1,551
      A good indicator of the general affordability of housing in Annapolis, MD, is the percentage of monthly income that should be spent on housing expenses, otherwise known as the debt-to-income ratio (DTI). Generally speaking, no more than 28 percent of your total gross income should be spent on your housing expenses and not more than 36 percent of your gross income on total expenses, including debts. In Annapolis, the median monthly income is $120,855 for those who own their own homes. Under the standard rule, that income level would allow for $2,820 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $51,681, per the median income in the area. That would allow for renters to spend up to $1,206 on monthly rental expenses.

      Maryland Sales Tax

      State General Sales Tax With Max Surtax
      Maryland 6% 6%

      Maryland Income Tax

      State Income Tax (Low) Income Tax (High)
      Maryland 2% 5.75%

      Goods & Services

      Item Annapolis National avg. Difference
      Haircut $28.33$24.2616.8%
      Beauty Salon $58.17$45.5627.7%
      Toothpaste $3.69$3.700.3%
      Shampoo $1.44$1.2812.7%
      Movie $13.69$12.1312.9%
      Bowling $23.03$18.0027.9%

      Groceries

      Item Annapolis National avg. Difference
      Ground Beef $6.23$5.846.7%
      Fried Chicken $1.39$1.5711.4%
      Milk $4.73$4.671.2%
      Potatoes $5.46$4.9310.7%
      Pizza $13.24$12.099.5%
      Beer $10.36$10.410.5%

      Health Care

      Item Annapolis National avg. Difference
      Optometrist $114.22$125.689.1%
      Doctor $133.22$135.781.9%
      Dentist $117.22$113.293.5%
      Ibuprofen $11.10$10.654.2%
      Lipitor $401.39$468.6014.3%

      Housing

      Item Annapolis National avg. Difference
      Home Price $414,000.00$184,700.00124.1%
      Avg. Mortgage Payment $1,906.29$2,346.6918.8%
      Apartment Rent $1,491.00$949.0057.1%

      Transportation

      Item Annapolis National avg. Difference
      Gasoline $3.46$3.460.1%
      Tire Balancing $62.66$59.924.6%

      Utilities

      Item Annapolis National avg. Difference
      All Electricity $223.91$193.9915.4%
      Phone $199.62$192.253.8%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Rock Hall, MD1,5631033.1%
      Glen Burnie, MD69,64911515.3%
      Ferndale, MD17,73211615.9%
      Upper Marlboro, MD58612222.4%
      Riviera Beach, MD12,78012019.6%
      Annapolis, MD39,32113433.9%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Essex, MD39,3071055.5%
      Lancaster, TX39,2641021.9%
      Milton, GA39,25214443.6%
      Roy, UT39,2431055.1%
      Keizer, OR39,40811818.3%
      Annapolis, MD39,32113433.9%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.