Takoma Park 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.
IndexTakoma ParkMarylandNational
Cost of living index137115100
IndexTakoma ParkMarylandNational
Goods & Services index9291100
Groceries index113112100
Health care index8688100
Housing index224154100
Transportation index108108100
Utilities index10199100
An overview of the general cost of living index for Takoma Park, MD is displayed above for your reference. Residents in Takoma Park, MD enjoy a cost of living index of 137. This index is 19% higher than the Maryland average, and 37% 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 Takoma Park, MD, the average cost of goods and services is 1% higher than it is in Maryland, and it is 8% lower than the national average.

Did you know?

  • The cost of living in Takoma Park is 19% higher than the Maryland average.
  • The cost of living in Takoma Park is 37% higher than the national average.
  • The cost of housing in Takoma Park is 124% 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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Compare Takoma Park, MD Cost of living To Other Cities

Salary Calculator

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Using the salary calculator lets you compare the salary you earn in Takoma Park, MD to what it is in other cities. It will let you know what your earnings would have to be in another city to have the same standard of living, as determined by the cost of living in each city. For example, if the cost of living in the area you want to move to is higher than the cost of living in Takoma Park, MD, you have to earn a higher income in order to still have the same standard of living. To operate the Takoma Park, MD salary calculator, put in the name of the other city, then move the slider to the point that represents the current income. The salary calculator will take care of the rest and tell you how much more or less you must earn in the new city. A Total breakdown of the cost of living is also provided.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
Owners$132,500$11,042$3,091$3,975
Renters$46,181$3,848$1,077$1,386
The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Takoma Park, MD as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Takoma Park, MD homeowners, is $132,500. This would allow for a maximum of $3,091 per month to be spent on housing costs. For renters, the median monthly income is $46,181 which would result in a maximum of $1,077 to be spent on rental costs.

Maryland Sales Tax

StateGeneral Sales TaxWith Max Surtax
Maryland6%6%

Maryland Income Tax

StateIncome Tax (Low)Income Tax (High)
Maryland2%5.75%
When considering the overall cost of living expenses in Takoma Park, MD, it's important to take into account the sales tax for Maryland, as well as the rate for income tax in Maryland. Goods and services sold to consumers in any state have some form of sales tax. Each state has its own tax code, which means that sales tax rates vary from state to state, ranging from over 7% in some states to as low as 0% in others. The maximum surtax for Maryland is 6%, and the sales tax in the state of Maryland is 6%. Alternatively, the tax imposed on your income by the state government is known as income tax. The rate for this tax also varies from state to state, and your rate is affected by your tax bracket, which is determined by your level of income. Income tax rates might be as high as 9%, down to as low as 0%. The range for income tax rates in Maryland starts from 2% and goes up to 5.75%.

Goods & Services

ItemTakoma ParkNational avg.Difference
Haircut $15.75$14.597.9%
Beauty Salon $47.00$34.6835.5%
Toothpaste $2.18$2.4711.9%
Shampoo $0.99$1.023.1%
Movie $11.94$9.8721.0%
Bowling $5.30$4.3920.7%

Groceries

ItemTakoma ParkNational avg.Difference
Ground Beef $2.99$4.4833.2%
Fried Chicken $1.59$1.468.6%
Milk $2.65$2.3612.4%
Potatoes $3.69$3.0620.5%
Pizza $8.00$9.2413.4%
Beer $8.59$8.630.5%

Health Care

ItemTakoma ParkNational avg.Difference
Optometrist $71.67$99.7828.2%
Doctor $64.00$105.0339.1%
Dentist $81.75$88.707.8%
Ibuprofen $10.83$9.4115.1%
Lipitor $293.64$298.501.6%

Housing

ItemTakoma ParkNational avg.Difference
Home Price $475,800.00$175,700.00170.8%
Avg. Mortgage Payment $2,313.93$1,081.03114.0%
Apartment Rent $1,069.00$920.0016.2%

Transportation

ItemTakoma ParkNational avg.Difference
Gasoline $2.28$2.099.0%
Tire Balancing $48.00$45.296.0%

Utilities

ItemTakoma ParkNational avg.Difference
All Electricity$178.68$170.804.6%
Phone $26.86$28.264.9%
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.
Cottage City, MD1,07099-1%
Belle Haven, VA37695-5%
Capitol Heights, MD4,4521055%
Silver Hill, MD5,3351055%
Seat Pleasant, MD4,6561055%
Takoma Park, MD17,30713737%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Wayne, MI17,31482-18%
South Houston, TX17,32383-17%
Huntington, IN17,28481-19%
New Philadelphia, OH17,33488-12%
Clayton, NC17,27498-2%
Takoma Park, MD17,30713737%
Source: The Takoma Park, MD cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2015.