Annapolis, MD

Very High · 143

Maryland · Population 40,744 · Updated March 2026

$1,855
Median Rent / Month
$104,257
Median Income
$510,200
Median Home Value
$1,914
Owner Costs / Month

Affordability

How far your income goes in Annapolis

21.4%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Maryland

State-level tax rates that affect your costs

5.75%
Income Tax (Top Rate)
6.0%
Sales Tax
1.07%
Property Tax Rate

Estimated Annual Costs

$22,260
Annual Rent
$5,995
State Income Tax
$5,459
Property Tax (est.)

Cost of Living Overview

Annapolis has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 143 (where 100 equals the national median), Annapolis residents can expect to pay median rent of $1,855/month while earning a median household income of $104,257/year.

The median home value in Annapolis, MD is $510,200, with typical monthly owner costs around $1,914 including mortgage, insurance, and taxes. The median rent-to-income ratio of 21.4% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Maryland has a moderate income tax rate of 5.75%. Combined with a 6.0% sales tax rate and 1.07% effective property tax rate, the overall tax environment is a factor in the total cost of living in Annapolis.

Frequently Asked Questions

Common questions about living costs in Annapolis

What is the cost of living in Annapolis, MD?
The cost of living index in Annapolis, MD is 143 (US average = 100). Median monthly rent is $1,855, median household income is $104,257/year, and the median home value is $510,200.
Is Annapolis, MD affordable?
No, Annapolis is more expensive than the national average with a cost index of 143. The rent-to-income ratio is 21.4%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Annapolis, MD?
The median gross rent in Annapolis, MD is $1,855 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $22,260.
What is the median household income in Annapolis?
The median household income in Annapolis, MD is $104,257 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Maryland?
Maryland has a top income tax rate of 5.75%, a sales tax of 6.0%, and an effective property tax rate of 1.07%.