2025 Cost of Living in Annapolis, Maryland: What You Need to Know
Annapolis, Maryland, is a charming city known for its rich history, beautiful waterfront views, and vibrant culture. Located just 30 miles from Washington, D.C., and offering a prime location along the Chesapeake Bay, it's no surprise that Annapolis is a highly desirable place to live. Whether you're considering relocating to the area or looking to buy or sell a home, understanding the cost of living in Annapolis is crucial.
In this guide, we'll explore the key factors that impact the cost of living in Annapolis, Maryland in 2025, and how they affect both home buyers and sellers.
Overview of Annapolis, Maryland
Before diving into the details of the cost of living, it’s important to understand what makes Annapolis such a great place to live. Known for its historic charm and scenic waterfront, Annapolis is home to the U.S. Naval Academy, historic homes, and a bustling downtown area filled with shops, restaurants, and cultural attractions. Whether you're an outdoor enthusiast who enjoys sailing and boating or someone who appreciates rich history and culture, Annapolis offers something for everyone.
With its proximity to Washington, D.C., and its highly regarded public schools, it’s no wonder that Annapolis is a popular choice for home buyers looking for a more relaxed lifestyle while still being within commuting distance of the nation's capital.
Housing Costs in Annapolis
One of the biggest factors influencing the cost of living in any area is housing. In Annapolis, the housing market can vary significantly depending on location, property size, and proximity to the waterfront.
As of 2025, the median home price in Annapolis is around $600,000, which is higher than the national average. Waterfront properties, as well as homes near the historic district, tend to be on the more expensive side, with prices often exceeding $1 million. If you're interested in a more affordable option, you can find homes in suburban areas like Parole and Cape St. Claire, where prices are generally lower.
Rental prices in Annapolis are also on the higher end compared to other cities in Maryland. A typical one-bedroom apartment in the city center can cost anywhere from $1,500 to $2,500 per month, while rentals in more suburban areas might range from $1,200 to $2,000.
Key Takeaway: Whether you're buying or renting, be prepared for higher-than-average housing costs, especially if you're seeking proximity to the water or downtown Annapolis.
Utilities and Other Living Expenses
In addition to housing costs, you'll need to factor in utilities and other living expenses when determining the overall cost of living in Annapolis.
Utilities
The average cost for basic utilities in Annapolis (including electricity, heating, cooling, water, and garbage) for a 915 square foot apartment is approximately $160 to $200 per month. If you're living in a larger home, you can expect to pay more for utilities, especially during the winter and summer months when heating and air conditioning are used more frequently.
Transportation
Annapolis has a relatively small urban footprint, and most areas are easily accessible by car. Gas prices in the area tend to be in line with the Maryland state average, hovering around $3.50 to $4.00 per gallon. Public transportation is available through the Annapolis Transit system, which provides local bus service throughout the city. The Maryland Transit Administration also operates commuter bus services to Washington, D.C., which is a popular option for residents working in the capital.
If you are considering owning a car in Annapolis, keep in mind that parking can be expensive in downtown areas, particularly near the historic district. Monthly parking passes in the city can cost anywhere from $100 to $200.
Groceries and Dining
Groceries in Annapolis are generally in line with national averages, though slightly higher due to the area’s proximity to the coast. Expect to pay around $350 to $450 per month for groceries for a single person, depending on dietary preferences and shopping habits. Dining out can also be a bit pricier in Annapolis, with an average meal for one person at a mid-range restaurant costing around $20 to $40.
Key Takeaway: Utilities, transportation, and food expenses in Annapolis are somewhat higher than the national average, especially if you prefer to live in or near the city center.
Taxes in Annapolis
Maryland has a state income tax that ranges from 2% to 5.75%, depending on your income level. Additionally, Annapolis residents pay local taxes, which can add an extra layer of expense to living in the area. The city’s property tax rate is approximately $0.92 per $100 of assessed value, which is relatively low compared to other cities in Maryland.
For homeowners, this means that property taxes in Annapolis are reasonable, but they can still add a significant amount to your overall cost of living depending on the value of your property.
Sales Tax
The sales tax in Annapolis is 6%, which is standard for the state of Maryland. This tax applies to most goods and services, including dining out, clothing, and electronics.
Key Takeaway: Taxes in Annapolis are competitive for the region, though income and sales taxes are something to keep in mind as part of your total living expenses.
Healthcare Costs in Annapolis
Healthcare costs in Annapolis are similar to the national average, though healthcare expenses can vary depending on your individual needs and insurance plan. If you're looking for healthcare providers, you'll find plenty of options in the area, including the Anne Arundel Medical Center, which offers comprehensive medical services to residents of Annapolis and the surrounding areas.
Health Insurance
The cost of health insurance in Maryland can vary based on your income and coverage level. In general, the average monthly premium for a single person can range from $200 to $400 depending on the type of coverage.
Key Takeaway: Healthcare costs in Annapolis are on par with the national average but should be considered when budgeting for your overall cost of living.
Education Costs
Annapolis is home to several highly regarded public schools within the Anne Arundel County Public School District. Property taxes fund local schools, which means that if you're a homeowner, you're indirectly contributing to the cost of education in the area.
Private school tuition can range from $10,000 to $25,000 per year, depending on the institution. Many families in Annapolis also choose to send their children to nearby universities, such as the University of Maryland or St. John's College, which is located in the heart of Annapolis.
Key Takeaway: Public schools in Annapolis are well-funded, and private school tuition is typical for families looking for additional educational options.
Conclusion
The cost of living in Annapolis, Maryland, in 2025 is on the higher end compared to many parts of the country. Housing costs are a significant factor in this, particularly if you’re interested in living near the water or in historic districts. However, Annapolis offers a high quality of life, with excellent schools, ample cultural activities, and a prime location near the Chesapeake Bay and Washington, D.C.
Whether you're looking to buy or sell in the Annapolis area, it’s important to factor in all aspects of the cost of living, from housing to utilities, taxes, and healthcare. Working with a local realtor can help you make informed decisions based on your budget and lifestyle preferences.
Are you ready to make Annapolis your home? Reach out to me today for expert advice on buying or selling property in this beautiful and historic city!
Comments(3)