Maryland has the highest median household income of any state (~$94,000), but the cost of living — especially housing and taxes — is well above average. The state’s economy is largely built on proximity to Washington, D.C.: federal government, defense contracting, cybersecurity, and healthcare drive the job market. The closer you live to the D.C. beltway (Montgomery County, Howard County), the higher both incomes and costs. Baltimore offers a more affordable urban option, with lower home prices but also lower wages. Maryland has a unique tax structure: you pay both state income tax (2–5.75%) and a county income tax surcharge (2.25–3.2%), which pushes the effective rate above most other states for middle and upper-income earners.
Maryland at a Glance
| Metric | Value | National Rank |
|---|---|---|
| Population (2024) | 6.2 million | 19th |
| Median household income | $98,461 | 1st (highest) |
| Median home price | $400,000 | Above average |
| Cost of living index | 118 | Above average |
| State income tax | 2-5.75% (+ county tax up to 3.2%) | High effective rate |
| Sales tax | 6% | Average |
| Property tax (effective rate) | 1.05% | Average |
Income and Housing
| City/Area | Median Income | Median Home Price | Median Rent (2BR) |
|---|---|---|---|
| Howard County | $124,000 | $520,000 | $2,000 |
| Montgomery County | $118,000 | $550,000 | $2,100 |
| Anne Arundel County | $105,000 | $430,000 | $1,800 |
| Baltimore County | $78,400 | $310,000 | $1,500 |
| Baltimore City | $54,200 | $195,000 | $1,300 |
| Frederick | $98,200 | $420,000 | $1,700 |
| Prince George’s County | $88,400 | $380,000 | $1,650 |
| Hagerstown | $58,200 | $260,000 | $1,150 |
| Ocean City (Worcester Co.) | $62,000 | $350,000 | $1,400 |
Taxes (Unique: State + County Income Tax)
Maryland’s effective income tax rate is state rate (2-5.75%) PLUS county surcharge (2.25-3.2%).
| Gross Income | Federal | MD State + County Tax | FICA | Total Rate |
|---|---|---|---|---|
| $100,000 | $13,615 | $7,500 | $7,650 | 28.8% |
| $150,000 | $25,915 | $11,250 | $10,878 | 32.0% |
Maryland Pros and Cons
| Financial Pros | Financial Cons |
|---|---|
| Highest median household income in US | High effective income tax (state + county) |
| Proximity to DC job market and federal jobs | Above-average cost of living (118) |
| Strong biotech, cyber, and defense sectors | Baltimore City has high crime and low income |
| Excellent public schools | Traffic congestion (DC commuters) |
| No tax on Social Security (most filers) | Housing prices above average |
Related: Cost of Living by State | State Income Tax Rates | Property Tax by State