Annapolis cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
Cost of living index127115100
Goods & Services index9191100
Groceries index111112100
Health care index9088100
Housing index195154100
Transportation index109108100
Utilities index9799100
An overview of the general cost of living index for Annapolis, MD is displayed above for your reference. Residents in Annapolis, MD enjoy a cost of living index of 127. This index is 10% higher than the Maryland average, and 27% higher than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in Annapolis, MD, the average cost of goods and services is 1% lower than it is in Maryland, and it is 9% lower than the national average.

Did you know?

  • The cost of living in Annapolis is 10% higher than the Maryland average.
  • The cost of living in Annapolis is 27% higher than the national average.
  • The cost of housing in Annapolis is 95% higher than the national average.
  • Maryland general sales tax is 18% higher than the national average.
  • Maryland state income tax is 10% lower than the national average.

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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
The salary calculator is used in order to provide a comparison of your current salary in Annapolis, MD to another city of your choice. The calculator will inform you of what your salary needs to be in any specific city in order for you to maintain your living standard based on what the city’s cost of living is. As an example, if you are seeking to move to a city that has a higher cost of living compared to Annapolis, MD, you would have to earn a higher income to maintain a standard of living that is similar. To get started with the Annapolis, MD salary calculator, input the new city’s name and then move the slider to indicate your current income. The salary calculator will now process the numbers and show you whether you need to earn more or less in the chosen city. A comprehensive breakdown of the cost of living will also be shown.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
If you want to find a good determining factor for the cost of living and the general affordability of housing in Annapolis, MD, all you must look at 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, MD, the median monthly income is $95,919 for those who own their own homes. Under the standard rule, that income level would allow for $2,238 to be budgeted for housing expenses each month, at the most. Renters, on the other hand, earn about $52,477, per the median income in the area. That would allow for renters to spend up to $1,224 on monthly rental expenses.

Maryland Sales Tax

StateGeneral Sales TaxWith Max Surtax

Maryland Income Tax

StateIncome Tax (Low)Income Tax (High)
One thing to keep in mind when considering the cost of living in Annapolis, MD is the Maryland sales tax and Maryland income tax rates. Sales taxes are taxes that are collected on most goods or services sold. Sales taxes can vary by state and can be as high as 7% and as low as 0% as not every state imposes a sales tax. The Maryland sales tax rate is 6% and the maximum surtax that can be charged is 6%. Income tax is the tax imposed on income by both the federal and state government. The income tax rates varies by individual state and will also be higher or lower depending on the applicable tax bracket. The rates of state income tax can vary from 0% to more than 9%. The Maryland income tax rates range from 2% to 5.75%.

Goods & Services

ItemAnnapolisNational avg.Difference
Haircut $15.75$14.597.9%
Beauty Salon $43.00$34.6824.0%
Toothpaste $2.13$2.4713.9%
Shampoo $0.99$1.023.1%
Movie $10.81$9.879.5%
Bowling $5.30$4.3920.7%


ItemAnnapolisNational avg.Difference
Ground Beef $3.49$4.4822.0%
Fried Chicken $1.57$1.467.2%
Milk $2.59$2.369.9%
Potatoes $3.89$3.0627.1%
Pizza $8.00$9.2413.4%
Beer $8.49$8.631.7%

Health Care

ItemAnnapolisNational avg.Difference
Optometrist $67.49$99.7832.4%
Doctor $80.00$105.0323.8%
Dentist $81.75$88.707.8%
Ibuprofen $10.58$9.4112.4%
Lipitor $293.64$298.501.6%


ItemAnnapolisNational avg.Difference
Home Price $374,500.00$175,700.00113.1%
Avg. Mortgage Payment $1,575.45$1,081.0345.7%
Apartment Rent $1,402.00$920.0052.4%


ItemAnnapolisNational avg.Difference
Gasoline $2.28$2.099.0%
Tire Balancing $48.80$45.297.8%


ItemAnnapolisNational avg.Difference
All Electricity$159.30$170.806.7%
Phone $28.67$28.261.5%
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, StatePopulationCost of Living IndexNational Avg.
Rock Hall, MD1,3771011%
Upper Marlboro, MD6461066%
Glen Burnie, MD67,5591099%
Ferndale, MD18,5771099%
Riviera Beach, MD12,81111414%
Annapolis, MD38,59912727%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Shakopee, MN38,6131099%
Sun City, AZ38,62289-11%
Bentonville, AR38,57293-7%
Goose Creek, SC38,5451033%
Bremerton, WA38,66411010%
Annapolis, MD38,59912727%
Source: The Annapolis, MD cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.