Is It Cheaper to Live in Virginia or Maryland?

Comparing the cost of living between Virginia and Maryland involves examining various financial aspects that impact household budgets. Individuals often consider factors such as housing, taxes, and daily expenses when deciding where to reside. Both states, located in the Mid-Atlantic region, share a border and proximity to the nation’s capital, yet they present distinct economic landscapes for residents. Understanding these differences provides clarity for those evaluating places to call home. This analysis offers insights into how economic factors shape the overall cost of residency in each state.

Housing Market Overview

The housing market stands as a primary determinant of living expenses in both Virginia and Maryland, with significant regional variations influencing prices. As of July 2025, the median home price in Maryland was $462,300, reflecting a 3.3% year-over-year increase. The average home value was $435,024, a 1.7% increase over the past year.

Rental costs also vary across these states. The average rent for an apartment in Maryland is $1,902. A one-bedroom apartment averages around $1,680 per month, while a two-bedroom typically costs about $1,924. For those seeking rentals in Baltimore, a one-bedroom apartment averages $1,496 per month as of August 2025, and a two-bedroom apartment is around $1,625.

Within Maryland, areas like Rockville, a suburb of Washington D.C., exhibit higher rental costs, with a one-bedroom averaging $2,250 and a two-bedroom reaching $2,790. This contrasts with the statewide average, indicating that proximity to major metropolitan centers significantly inflates housing expenses. The median home price in Rockville was $670,000.

Virginia’s housing market presents a similar pattern of regional disparities. The median monthly mortgage cost in Virginia is approximately $2,079. For rentals, a median one-bedroom apartment in Virginia costs around $1,461, and a two-bedroom is about $1,503. The median gross rent across Virginia is $1,567. Median home prices in Virginia vary, with Virginia Beach around $404,130 and Charlottesville at $495,420. Generally, housing costs are higher in Northern Virginia, particularly in suburbs bordering Washington D.C., mirroring the elevated costs seen in Maryland’s D.C. suburbs.

State and Local Tax Burden

The tax structures in Virginia and Maryland represent another significant component of the cost of living, with distinct approaches to income, property, and sales taxes. Virginia employs a graduated individual income tax system with four brackets, ranging from 2% to 5.75% for the 2024 tax year. The highest rate of 5.75% applies to taxable income exceeding $17,000.

Maryland also has a graduated individual income tax system, featuring eight tax brackets that range from 2% to 5.75% for the 2024 tax year. The highest state income tax rate in Maryland is 5.75%. Maryland’s 23 counties and Baltimore City levy local income taxes, which range between 2.25% and 3.2% of taxable income. These local taxes are withheld and collected with the state income taxes, adding an additional layer to the overall income tax burden in Maryland.

Regarding property taxes, in Virginia, property taxes are set and collected at the local government level. The average effective property tax rate in Virginia is 0.72% of a home’s assessed value. This average rate can vary significantly by county and locality. Maryland, on the other hand, has an average effective property tax rate of 0.95% on owner-occupied housing value. Maryland’s property tax rates also vary by county and locality.

Sales tax rates also differ between the two states. Virginia’s state sales tax rate is generally 5.3%. Some counties in Virginia may levy additional local sales taxes, which can bring the combined state and local sales tax rate up to 7% in certain locations. Groceries and personal hygiene items are taxed at a reduced rate of 1% statewide in Virginia. In Maryland, the statewide sales tax rate is 6%. Maryland also imposes a higher state sales tax rate of 9% on alcoholic beverages.

Vehicle-related taxes and fees also contribute to the overall tax burden. Virginia imposes a personal property tax on vehicles, which is assessed at the local level and varies by jurisdiction. Maryland has a gasoline tax of 46.1 cents per gallon, but does not levy a personal property tax on vehicles. Virginia’s gasoline tax is 30.8 cents per gallon, effective from July 1, 2024, to June 30, 2025.

Everyday Spending and Services

Beyond housing and taxes, the daily costs of living, encompassing utilities, groceries, transportation, healthcare, childcare, and education, further distinguish the financial landscape of Virginia and Maryland. Utility expenses constitute a significant portion of household budgets in both states. In Virginia, the average monthly electric bill is approximately $166.26, with another source indicating $224. The overall average monthly utility cost in Virginia is around $387 or $430, including an estimated $142 for electricity, $80 for natural gas, $125 for cable and internet, and $40 for water.

In Maryland, the average monthly electric bill is about $170.66, with other estimates ranging up to $285. Typical utility costs, combining electricity, natural gas, water, and internet, range from $400 to $450 per month.

Grocery prices generally reflect regional cost of living variations rather than significant statewide differences between Virginia and Maryland. Areas with higher overall living costs, particularly metropolitan and suburban regions, typically experience higher grocery prices. This is a commonality observed in most densely populated areas across the United States.

Transportation costs, including gasoline and car insurance, also factor into daily expenses. As of July 2024, Virginia’s gasoline tax is 30.8 cents per gallon. Maryland’s gasoline tax is 46.1 cents per gallon. Car insurance rates vary widely based on individual driving records, vehicle type, and specific location within each state. Both states offer public transportation options, particularly in their respective D.C. metropolitan areas, which can influence commuting costs.

Childcare expenses represent a substantial financial burden for families in both states. In Virginia, the average annual cost for infant care in a center-based setting is $16,397 (or $1,366 per month) as of February 2025. Childcare for a 4-year-old in Virginia costs $13,560 annually, or $1,130 per month. In Maryland, the average cost of childcare for an infant is approximately $14,040 per year, which translates to about $1,170 per month.

Higher education costs for in-state students also show differences. For the 2024-2025 academic year, the average tuition and fees for in-state students at Maryland public colleges is $10,676. The University of Maryland, College Park, specifically estimates in-state tuition and fees at $12,008 for the 2025-2026 academic year. In Virginia, in-state tuition for public universities also varies. For example, Virginia Commonwealth University’s in-state tuition and fees for the 2024-2025 academic year were around $14,942.