Most homebuyers focus on the sale price — but the real budget question is, “What does owning a home in Maryland actually cost each month?”
Between property taxes, insurance, HOA fees, and rising utility expenses, Maryland homeowners face a wide range of ongoing costs that can vary significantly depending on the county and type of property they purchase.

If you’re planning to buy a home in Maryland in 2025, understanding these expenses up front will help you make a smarter decision, plan accurately, and avoid financial surprises after you settle. This guide breaks down every major cost Maryland homeowners should expect, including how fees differ by county and how to estimate a realistic monthly payment.

1. Maryland Property Taxes: What Homeowners Really Pay

Property taxes are one of the biggest ongoing expenses for Maryland homeowners — and they vary widely by county.

Statewide average property tax rate:
Approximately 1.05% of assessed value, but many counties fall above or below this.

Higher-tax counties:

• Baltimore City

• Prince George’s County

• Montgomery County

These counties have higher rates due to dense populations, larger school districts, and expanded public services.

Moderate or lower-tax counties:

• Harford County

• Anne Arundel County

• Cecil County

• Carroll County

This variation means two homes priced the same can have very different monthly payments.

Example:
A $400,000 home in Baltimore City may have a property tax bill $2,500–$4,000 higher per year than the same home in Harford County.

What buyers should do:
Always review the county’s tax rate, recent assessments, and projected changes before finalizing your budget.

2. Homeowners Insurance in Maryland: What to Expect

Homeowners insurance costs in Maryland are moderate compared to other states, but several factors influence your premium:

What affects Maryland insurance premiums:

• Zip code and local crime rates

• Whether the home is near water

• Age of the home and roof

• Dwelling coverage value

• Add-ons like flood insurance or sewer backup coverage

Maryland insurance average:
Most homeowners pay somewhere between $1,100–$1,800 per year, depending on location and coverage level.

Flood insurance considerations:
Areas near the Chesapeake Bay, waterfronts, and flood plains may require FEMA flood insurance, which can add hundreds or thousands yearly.

3. HOA and Condo Fees: Maryland’s Hidden (But Important) Costs

Many Maryland communities — especially in suburbs like Anne Arundel, Howard, and Montgomery — have HOA or condo associations.

HOA fees typically cover:

• Community landscaping

• Trash services

• Snow removal

• Community amenities (pool, playgrounds, etc.)

Average Maryland HOA fee: $50–$120 per month
Average condominium fee: $250–$600 per month

Important:
Condo fees may also include water, gas, insurance for the building, and exterior maintenance — which can sometimes justify a higher monthly cost.

4. Utilities and Maintenance Costs

Beyond taxes and insurance, Maryland homeowners should budget for routine maintenance and rising utility costs.

Average utility expenses in Maryland:

• Electricity: $150–$250 per month

• Gas/oil: $100–$250 per month

• Water/sewer: $70–$120 per month

Older homes in Baltimore City, Harford County, and parts of Anne Arundel may have higher energy costs due to original windows, insulation issues, or aging systems.

Annual maintenance you should plan for:
Professionals recommend budgeting 1% of the home’s value per year for maintenance and repairs.

A $400,000 home = $4,000/year maintenance budget.

5. Closing Costs & Buyer Fees Unique to Maryland

Maryland buyers face some of the highest closing costs on the East Coast — often between 2.5% and 4.5% of the purchase price.

Typical Maryland buyer fees include:

• Transfer & recordation taxes

• Title fees

• Prepaid taxes & homeowners insurance

• Lender charges

• Home inspection costs

• Appraisal fees

But good news:
Many Maryland counties offer first-time buyer discounts on transfer taxes, cutting closing costs significantly.

6. The True Monthly Payment Breakdown

To get an accurate picture of what homeownership costs, buyers should calculate the full PITI + fees:

P – Principal
I – Interest
T – Taxes
I – Insurance

• HOA/Condo fees

• Utilities

• Maintenance

This detailed view provides a realistic monthly budget rather than focusing only on the sale price or mortgage amount.

The Bottom Line

Owning a home in Maryland in 2025 can be highly rewarding, but understanding the ongoing costs is essential to staying financially comfortable long after closing. Property taxes, insurance, HOA fees, utilities, and maintenance vary significantly across Maryland’s counties — and knowing these differences can help you choose the right home in the right area for your budget.

Whether you’re buying in Baltimore County, Anne Arundel, Harford, Frederick, or anywhere in between, having a clear picture of the true cost of ownership ensures you make a confident and informed decision.

Ready to Understand Your Maryland Homeownership Budget?

KNHome Group of Vybe Realty walks buyers through every cost — upfront and long-term — so you can purchase confidently without surprises.

Visit KNHomeGroup.com to start planning your home purchase with clarity and expert guidance.