Is it cheaper to live in Annapolis or Austin?

Austin, TX is cheaper. Its monthly baseline of $1,660 (1BR rent + utilities) runs about 9% below Annapolis, MD's $1,820, mainly because of rent.

How much more do you need to earn to live in Annapolis than in Austin?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $58,000 in Austin.

Which has lower taxes, Annapolis or Austin?

Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Austin under Texas's (no state income tax and a 6.25% state sales tax).

Annapolis vs Austin Cost of Living 2026

Annapolis

Maryland

$1,820/mo est.

Austin

Texas

$1,660/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,820 in Annapolis, MD versus $1,660 in Austin, TX. Overall, Austin, TX is roughly 9% cheaper to live in day-to-day than Annapolis, MD, driven mainly by rent.

Median household income is $104,257 in Annapolis, MD and $91,461 in Austin, TX — about 12% higher in Annapolis, MD. Maryland has a top state income tax rate of 6.50% and a 6% state sales tax; Texas has no state income tax and a 6.25% state sales tax.

Annapolis, MD

Austin, TX

Rent

Studio

$1,239

$1,348

+9% in Austin, TX

1 Bedroom

$1,598

$1,457

+9% in Annapolis, MD

2 Bedroom

$1,864

$1,776

+5% in Annapolis, MD

3 Bedroom

$2,232

$2,127

+5% in Annapolis, MD

Buying a Home

Median Home Value

$510,200

$512,700

+0% in Austin, TX

Income

Median Household Income

$104,257

$91,461

+12% in Annapolis, MD

Metro Median Wage (annual)

$59,070

$56,950

+4% in Annapolis, MD

People & Lifestyle

Median Age

40.9 yr

34.5 yr

+6.4 yr in Annapolis, MD

Homeownership

59.8%

44.4%

+15.4 pp in Annapolis, MD

Bachelor's+ (25+)

53.7%

58.2%

+4.5 pp in Austin, TX

Avg Commute

28.7 min

24.0 min

+4.7 min in Annapolis, MD

Crime (per 100k/yr)

Violent Crime

806

476.1

+41% in Annapolis, MD

Property Crime

2,111.5

3,290.7

+56% in Austin, TX

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

57.1°F

67.2°F

+10.1°F in Austin, TX

Annual Precipitation

—

34.9 in

Gas

Regular Gasoline

$3.86/gal

$3.62/gal

+6% in Annapolis, MD

Area: East Coast (PADD 1) vs Texas.

Public Transit

Base Fare (one-way)

—

$1.25

Adult base one-way fare — — vs CapMetro (2026).

Utilities

Electricity (¢/kWh)

21.8

16.4

+24% in Annapolis, MD

Natural Gas ($/MCF)

$18.94

$30.48

+61% in Austin, TX

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.00

about equal

Bread (lb)

$1.75

about equal

Eggs (doz)

$2.21

about equal

Ground Beef (lb)

$6.45

about equal

Chicken (lb)

$1.90

about equal

Bananas (lb)

$0.62

about equal

Average prices — South vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MD / TX)

6.25%

+0.3 pp in TX

Income Tax (top rate)

6.50%

None

+6.5 pp in MD

Annapolis vs Austin — FAQ

Is it cheaper to live in Annapolis or Austin?: Austin, TX is cheaper. Its monthly baseline of $1,660 (1BR rent + utilities) runs about 9% below Annapolis, MD's $1,820, mainly because of rent.
How much more do you need to earn to live in Annapolis than in Austin?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $58,000 in Austin.
Which has lower taxes, Annapolis or Austin?: Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Austin under Texas's (no state income tax and a 6.25% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).