Is it cheaper to live in Annapolis or Boston?

Annapolis, MD is cheaper. Its monthly baseline of $1,820 (1BR rent + utilities) runs about 21% below Boston, MA's $2,290, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $79,000 in Boston.

Which has lower taxes, Annapolis or Boston?

Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Boston under Massachusetts's (a top state income tax rate of 9.00% and a 6.25% state sales tax).

Annapolis vs Boston Cost of Living 2026

Annapolis

Maryland

$1,820/mo est.

Boston

Massachusetts

$2,290/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 $2,290 in Boston, MA. Overall, Annapolis, MD is roughly 21% cheaper to live in day-to-day than Boston, MA, driven mainly by rent.

Median household income is $104,257 in Annapolis, MD and $94,755 in Boston, MA — about 9% higher in Annapolis, MD. Maryland has a top state income tax rate of 6.50% and a 6% state sales tax; Massachusetts has a top state income tax rate of 9.00% and a 6.25% state sales tax.

Annapolis, MD

Boston, MA

Rent

Studio

$1,239

$1,890

+53% in Boston, MA

1 Bedroom

$1,598

$1,978

+24% in Boston, MA

2 Bedroom

$1,864

$2,155

+16% in Boston, MA

3 Bedroom

$2,232

$2,234

+0% in Boston, MA

Buying a Home

Median Home Value

$510,200

$710,400

+39% in Boston, MA

Income

Median Household Income

$104,257

$94,755

+9% in Annapolis, MD

Metro Median Wage (annual)

$59,070

$66,620

+13% in Boston, MA

People & Lifestyle

Median Age

40.9 yr

33.2 yr

+7.7 yr in Annapolis, MD

Homeownership

59.8%

35.4%

+24.4 pp in Annapolis, MD

Bachelor's+ (25+)

53.7%

54.1%

+0.4 pp in Boston, MA

Avg Commute

28.7 min

30.2 min

+1.5 min in Boston, MA

Crime (per 100k/yr)

Violent Crime

806

630.2

+22% in Annapolis, MD

Property Crime

2,111.5

2,030.8

+4% in Annapolis, MD

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

51.5°F

+5.6°F in Annapolis, MD

Annual Precipitation

—

43.8 in

Gas

Regular Gasoline

$3.86/gal

$3.95/gal

+2% in Boston, MA

Area: East Coast (PADD 1) vs Massachusetts.

Utilities

Electricity (¢/kWh)

21.8

28.8

+32% in Boston, MA

Natural Gas ($/MCF)

$18.94

$31.39

+66% in Boston, MA

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Boston, MA

Bread (lb)

$1.75

$1.92

+10% in Boston, MA

Eggs (doz)

$2.21

$2.19

+1% in Annapolis, MD

Ground Beef (lb)

$6.45

$6.90

+7% in Boston, MA

Chicken (lb)

$1.90

$2.19

+15% in Boston, MA

Bananas (lb)

$0.62

$0.69

+12% in Boston, MA

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

State Taxes

Sales Tax (MD / MA)

6.25%

+0.3 pp in MA

Income Tax (top rate)

6.50%

9.00%

+2.5 pp in MA

Annapolis vs Boston — FAQ

Is it cheaper to live in Annapolis or Boston?: Annapolis, MD is cheaper. Its monthly baseline of $1,820 (1BR rent + utilities) runs about 21% below Boston, MA's $2,290, mainly because of rent.
How much more do you need to earn to live in Annapolis than in Boston?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $64,000 a year in Annapolis versus $79,000 in Boston.
Which has lower taxes, Annapolis or Boston?: Annapolis is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Boston under Massachusetts's (a top state income tax rate of 9.00% 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).