Retire in Maryland: Cost, Taxes & FIRE Number for 2026
Retiring in Maryland costs about $69,000 a year on average, with a C retirement tax grade and a strong #19 healthcare ranking — here's the full breakdown on cost, taxes, and how much you need saved.
What It Costs to Retire in Maryland
The average retiree in Maryland spends about $69,000 a year ($5,750/month), based on BLS spending data for households 65 and older, adjusted for Maryland's cost of living. That works out to a standard retirement number of $1,725,000 under the 4% rule, or $1.97M for early retirees using the more conservative 3.5% FIRE withdrawal rate.
Maryland earns a C retirement tax grade from Plootus Research — a middling score driven largely by its state income tax of up to 5.75%. However, the state does not tax Social Security benefits, which helps many retirees. The state ranks #19 nationally for healthcare quality, offering access to world-class medical centers in the Baltimore–Washington corridor.
With an average annual salary of $79,920 for working residents (median $65,340), Maryland has one of the higher income baselines in the country — useful context for retirees who spent their working years accumulating savings here.
Maryland Retirement at a Glance
| Annual Retirement Cost | $69,000 ($5,750/mo) |
| Standard Retirement Number (4% rule) | $1,725,000 |
| FIRE Number (3.5% SWR) | $1,971,429 |
| Retirement Tax Grade | C |
| State Income Tax | 5.75% max |
| Social Security Tax | No tax |
| Healthcare Rank | #19 of 50 |
| Avg. Household Income | $79,920 |
| Median Household Income | $65,340 |
| Overall Retirement Rating | ★★☆☆☆ |
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Maryland vs. Nearby States
| State | Tax Grade | HC Rank | Annual Cost |
|---|---|---|---|
| Maryland | C | #19 | $69,000 |
| Virginia | B | #13 | $58,500 |
| New Jersey | D | #9 | $80,000 |
| Delaware | A | #15 | $57,000 |
Maryland Retirement Tax Overview
State Income Tax
Maryland's state income tax tops out at 5.75%. There is also a local income tax in most counties (typically 2.25–3.2%), meaning effective rates can be higher for some retirees. Budget carefully for total state and local tax burden.
Social Security Tax
Maryland does not tax Social Security retirement benefits. This is a meaningful advantage for retirees who rely on Social Security as a significant income source, partially offsetting the higher income tax rate.
Healthcare in Retirement in Maryland
Maryland ranks #19 nationally for healthcare quality — solidly in the upper third of states. The Baltimore–Washington metro area is home to some of the nation's top medical institutions, including Johns Hopkins Hospital and the University of Maryland Medical System. Retirees in the region have access to world-class specialist care.
HC Rank #19: Maryland offers strong healthcare access, particularly in the Baltimore–Washington corridor. Quality and access are somewhat lower in more rural parts of the state, but overall Maryland ranks among the better states for retiree healthcare.
Frequently Asked Questions: Retiring in Maryland
Maryland earns a C retirement tax grade and ranks #19 of 50 for healthcare quality. Average annual retirement spending runs about $69,000, requiring roughly $1,725,000 in savings under the standard 4% withdrawal rule. Whether it's a good fit depends on your priorities — Maryland's state income tax is 5.75% max, and it does not tax Social Security.
Maryland does not tax Social Security benefits. This is one positive aspect of Maryland's tax environment for retirees, partially offsetting the higher income tax rate. Confirm current thresholds and exemptions with a tax professional, as rules can change year to year.
Using the standard 4% rule, retiring in Maryland on its average annual cost of $69,000 requires approximately $1,725,000 in savings. That figure excludes Social Security, which most retirees layer on top to reduce the amount they need from their own portfolio.
At a 3.5% safe withdrawal rate — the more conservative rate recommended for early retirees facing a 40-50+ year horizon — Maryland's FIRE number is approximately $1.97M, based on its $69,000/year average cost. Early retirees should also budget separately for healthcare before Medicare eligibility at 65.
Maryland ranks #19 nationally for healthcare quality — solidly in the upper third of states. The state has an extensive network of world-class hospitals, particularly in the Baltimore–Washington corridor, including Johns Hopkins and the University of Maryland Medical System.
Sources
- Plootus Research Team, 2026 State Retirement Cost Analysis
- U.S. Bureau of Economic Analysis — Regional Price Parities
- Maryland Comptroller — Individual Income Tax Guide
- Commonwealth Fund — State Healthcare Rankings 2025
- U.S. Census Bureau — American Community Survey
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