Is Baltimore an Expensive City to Live In?

Baltimore offers a unique living experience on the East Coast. Affordability is influenced by individual circumstances and preferences. Understanding the costs associated with living in Baltimore requires a detailed look at expenses from housing to daily necessities and local taxation.

Overall Cost of Living Snapshot

Baltimore’s cost of living is generally higher than the national average but offers relative affordability compared to some other major East Coast cities. The overall cost of living in Baltimore is about 13% higher than the U.S. national average. This positions Baltimore as a moderately priced urban center, especially when contrasted with metropolitan areas like New York or Boston.

Housing Costs

Housing represents a significant portion of living expenses, and Baltimore presents a mixed picture for both renters and homeowners. For homeownership, the median sale price for homes in Baltimore City has been around $240,000 to $249,000 as of mid-2024 to mid-2025. This is notably lower than the national median home price. However, property taxes in Baltimore City are among the highest in Maryland, with a rate of 2.248% for the 2024-2025 fiscal year. An additional state property tax rate of $0.112 per $100 contributes to a total effective rate of 2.36%.

The rental market in Baltimore also offers various price points depending on unit size and location. A two-bedroom apartment costs around $1,420 per month. For a one-bedroom apartment, the average rent is approximately $1,500 per month. The average monthly rent across all unit types in Baltimore City has been cited around $1,664 to $1,791. These rental figures are often lower than both the state and national averages, making renting a relatively more affordable option for many residents.

Daily and Recurring Expenses

Beyond housing, daily and recurring expenses contribute substantially to the overall cost of living. Transportation costs can vary. Public transit options like the MTA bus and light rail require a single fare of about $1.90, or a daily pass for $4.40 and a weekly pass for $21.00. For car owners, average gas prices in Maryland have fluctuated around $3.09 to $3.19 per gallon. Car insurance in Baltimore averages between $2,345 and $2,804 per year. The estimated annual commuting cost for a Baltimore resident, covering gas and vehicle maintenance, is approximately $8,300.

Food Expenses

Food expenses are another regular consideration for residents. A typical Baltimore household spends around $6,200 per year on groceries. For a single person, monthly grocery bills can range from $250 to $350. Dining out is also part of the budget, with a basic lunchtime meal costing around $15 to $18 per person, and a mid-range dinner for two potentially reaching $75.

Utility Costs

Utility costs in Baltimore are generally moderate but can be slightly higher than the national average. Average monthly costs for electricity range from $150 to $250, water from $50 to $120, and gas from $50 to $150. Internet services add $25 to $60 per month to household budgets.

Healthcare Costs

Healthcare costs in Baltimore are comparatively lower than the national average, with a general physician visit averaging around $133 and prescription medications costing approximately $400.

Local Taxation and Financial Considerations

Understanding the tax landscape helps assess the financial burden of living in Baltimore. Maryland levies a progressive state income tax, with rates ranging from 2% to 5.75% for the 2024 tax year, increasing with higher income brackets. Baltimore City also imposes its own local income tax. For 2024, the local income tax rate for Baltimore City residents is 3.20%. This local tax is determined by an individual’s place of residence rather than their place of employment.

Maryland also has a statewide sales tax of 6% that applies to most goods and services. Certain items like most groceries and prescription drugs are exempt from sales tax, while alcoholic beverages are subject to a higher 9% rate. Property taxes contribute significantly to the overall tax burden for homeowners. These various taxes collectively influence the disposable income of residents and are an important component of the city’s cost of living.