Cost Of Living In Annapolis, MD (Taxes, Housing & More)

Annapolis is the capital of Maryland and is located between the Severn and South Rivers. It’s one of the oldest cities in the country and was the national capital from 1783-1784. Annapolis is only about 45 minutes away from Washington D.C. by car. It’s a popular place to visit for the Chesapeake Blue Crabs, the shops at City Dock, and the Historic District.

Overall, Annapolis is somewhat expensive if you’d like to call the city home. The cost of living index is 125.6, compared to a national average of 100. The median home value in Annapolis is $542,056. The average rent for a one-bedroom apartment in Annapolis is $1,757.

So, how do other costs stack up in Annapolis, and how much would you need to live comfortably in this Maryland city?

The median home value in Annapolis, Maryland, currently is more than $542,000. The price per square foot is around $238, which is a 14.4% increase year-over-year. The housing market in Annapolis is somewhat competitive.

The homeownership rate in Annapolis is around 50.4%, and the rate of renters is 49.6%.

Around 37% of homes in Annapolis are single-family, and 22.7% are townhomes. Most of the homes in Annapolis were built between 1970 and 1999, and nearly 15% were built in 1939 or before.

Maryland has what’s called a progressive state income tax, and every county also has its own income tax.

The state income tax rate ranges from 2% to 5.75%. The county income tax throughout the state ranges from 2.25% to 3.20%. As a result, Maryland is in the top half of states in the country for income taxes overall.

Anne Arundel County’s resident rate is 2.81%, which again is levied on top of the state’s income tax based on your income.

These rates apply to your taxable income, and the number of personal exemptions in Maryland equals the number of exemptions on your federal tax return, but the exemption amount is different.

The statewide average effective property tax rate in Maryland is 1.06%. This is just a bit below the national average, which is 1.07%. In Maryland, Baltimore County has the highest effective property tax rate at 1.17%. The rate in Talbot County is the lowest at 0.68%.

In Anne Arundel County, the average county property tax rate is 0.870%. If your home had an assessed value of $250,000, you would pay $2,175 in property taxes annually.

Since home values in Anne Arundel County are high, the median property tax payment actually ends up being around $3,078 a year, which is around $500 more than the national average.

Transportation costs in Maryland are below the national average. The cost of living index for transportation costs in Annapolis is 95.3, while the national average is 100. Transportation costs include gas prices, car insurance premiums, and maintenance.

The average annual cost of car insurance in Maryland is $1,240 a year. That’s 13% less than the national average.

The public transit system in Annapolis is called ADOT. For a day pass normal fare, the price is $4. For a 7-day pass, it’s $20, and for a 30-day pass, it’s $80.

The average regular gas price in Annapolis is $2.78, which is just slightly above the national average.

If you have young children who aren’t school-aged yet, the price of daycare in Annapolis is high.

The average cost of full-time daycare is $1,625 a month.

The average private school tuition in Maryland is $12,286 a year. The average for a private elementary school is $10,586 a year. The private high school average cost is $16,465 a year.

For colleges and universities for the academic year 2020-2021, the average tuition and fees are $6,832 in-state and $18,878 for out-of-state, both of which are higher than the national average.

Related Questions

How Much Money Do People Make in Annapolis?

Annapolis has a population of just under 40,000 and a median age of around 37. The median household income is $83,948, and the poverty rate in Annapolis is 11.2%. The average salary in Annapolis is $65,000.A software engineer is one of the highest-paying jobs in the area, with an average salary of $81,000.Major Annapolis employers include Anne Arundel Medical Center, Rockwell Collins, Inc., and the Northrop Grumman Corporation.

Is Annapolis, MD Safe?

Annapolis has a crime index of 15, meaning that it’s safer than 15% of cities in the U.S. The violent crime rate is 6.42, which is above Maryland’s rate of 4.54 and above the national median of 4.54.The property crime rate in Annapolis is 23.56, compared to Maryland’s rate of 19.5.The rate of Annapolis crime rates per square miles is 163, which is significantly above Maryland’s rate of 50.

Annapolis is a beautiful city on the water and with lots of history. At the same time, it’s a relatively expensive city to call home. You can expect to pay more than the national average in essentially every area including food, transportation, and especially housing. These are factors to consider before moving there.

Maryland as a whole is also an expensive state to live in, and it has some of the highest tax rates in the country.

With that being said, as is often the case with more expensive locations, people in Annapolis do have higher household incomes and salaries than the national average. It may ultimately balance out, depending on your career and income.

If you were to compare the cost of living in Annapolis and Washington D.C., you’d actually get more bang for your buck in Annapolis. The cost of living in Annapolis is more than 17% lower than in D.C., with the median housing prices being one of the biggest differences between the two locations.