Cost of Living in the DC Metro 2026: Virginia vs Maryland vs DC, Honestly

You are looking at two houses that cost the same.

One is in Rockville. One is in Vienna. Same square footage, same lot size, same year built. The listing agent for each will tell you theirs is a better deal. And on paper, they are charging you the exact same price.

They are not the same deal. The monthly cost of living in one of those houses will be $700 to $1,400 more than the other once you factor in state income tax, county income tax, property tax, and the cost of the commute you will actually drive every day.

Nobody does this math for you. Here it is.

What this guide does

• Gives you the real 2026 monthly cost of living for each DC metro jurisdiction, not the headline median price.
• Pulls live county-level data from Redfin and current mortgage rates from the Federal Reserve so the numbers are the numbers today.
• Tells you which jurisdiction saves you money at which income level, which family size, and which career stage.
• Flags the specific tax advantages that military families and high earners leave on the table every year by picking the wrong side of the Potomac.

The one number that matters most: housing, by county

As of the week ending April 6, 2026 (source: Redfin county data):

Two things jump out of that table if you know what to look for.

DC proper is a buyer's market. 8.6 months of supply is unusual for DC. It will not last, but right now, buyers have leverage in the District that they do not have anywhere else in this metro.

Fairfax is the tightest market in the DMV right now, not Bethesda. 42% of homes sold above list price. 1.9 months of supply. That is hotter than Montgomery County, hotter than Arlington. If you are looking in Fairfax, expect multiple offers.

Mortgage rates this week

The 30-year fixed is 6.32% per Mortgage News Daily as of April 17, 2026. The 15-year fixed is 5.96%. These are the rates your DMV lender is actually quoting, not the bank headline numbers.

Use the calculator above to run your specific home price and down payment.

Taxes: the number the median home price hides

Housing is the biggest line item. Taxes are the second. And the three jurisdictions could not be more different.

Virginia

• State income tax: 5.75% on taxable income above $17,000. Flat and predictable.
• Military retirement pay: Not taxed. Virginia exempts all military retirement income starting in tax year 2022 and continuing indefinitely.
• Property tax (effective): Roughly 0.84% in Arlington, 1.0% in Fairfax County, 0.97% in Prince William.
• Sales tax: 5.3% general, 6% in Northern Virginia region (includes regional 0.7%).

Maryland

• State income tax: 4.75% on most income, plus a county income tax of approximately 3.2% in Montgomery and Prince George's Counties. Combined effective rate around 7.95% for many filers.
• Military retirement pay: Partially taxed. First $12,500 exempt under age 55, first $20,000 exempt age 55+. Higher exemptions for certain combat-related disability pay.
• Property tax (effective): Approximately 0.94% Montgomery County, 1.0% Prince George's County.
• Sales tax: 6%.

Washington DC

• Income tax: Progressive, topping out at 10.75% for income above $1,000,000. For most households, the bracket is 6.5% to 8.5%.
• Military retirement pay: Not taxed by DC.
• Property tax (effective): Approximately 0.56%. This is low relative to the national average, but home prices are high, so the dollar amount is not small.
• Sales tax: 6%.

What this works out to per year

A military officer household earning $175,000 combined (say, an O-5 active duty plus a civilian spouse):

• In Virginia: State income tax around $9,600. Military pension (if applicable) not taxed.
• In Maryland: State + county income tax around $13,700. Military pension partially taxed.
• In DC: Income tax around $11,600. Pension not taxed.

Virginia is the cheapest for this income profile by about $4,000 per year versus Maryland. Over a three-year tour, that adds up to real money.

For retirees living on $80,000 of pension income alone, the delta is even larger because Virginia exempts the pension entirely and Maryland taxes a portion.

Childcare: the quiet budget-destroyer

Childcare in the DC metro is among the most expensive in the country. It is also remarkably consistent across the three jurisdictions, which makes it a cost you cannot really optimize by picking a different county.

Rough 2026 monthly rates:

• Full-time infant daycare: $2,200 to $3,100. Arlington, Bethesda, McLean push toward the high end. Prince William, Prince George's, Frederick push toward the low end.
• Preschool (3-5): $1,500 to $2,300.
• After-school care (school-age): $600 to $1,200.

If your family qualifies for on-base CDC access, that cuts the bill substantially but availability is tight. Waitlists run 6 to 18 months at every major DMV installation. Apply the day you receive orders.

Commute: the cost you feel every day

Commute cost is not just time. It is tolls, car depreciation, gas, and parking. Over a three-year tour, these add up.

Virginia toll roads (I-66 inside the Beltway, I-495 express lanes, Route 267 Dulles Toll Road) charge dynamic tolls that hit $15 to $40 one-way during peak hours. A Virginia commuter driving to DC or Tysons every day can spend $200 to $400 per month in tolls alone.

Maryland tolls are lighter. The Intercounty Connector (MD-200) is the main toll route. Most Maryland commuter corridors are free.

Metro from Arlington or Bethesda to downtown DC runs about $5 to $8 per round trip. Monthly passes cap the cost. Metro-accessible housing is worth paying a premium for if you commute daily.

Parking in DC runs $200 to $400 per month. Most suburban workplaces have free parking.

Total monthly cost by location (family of 4, two kids in childcare)

Rough estimates for a household earning $150K to $200K with one commute to DC and one commute to a suburban workplace:

The difference between the most and least expensive options in this table is about $2,400 per month, or $29,000 per year.

Where the real value is right now

Prince William County, Virginia. Lowest housing, Virginia tax advantages, decent schools in the Gainesville and Haymarket areas. Trade: 45 to 60 minute commute to DC. Best for families whose work sits in Tysons, Reston, Quantico, or farther south.

Prince George's County, Maryland. Competitive pricing, MARC and Metro access, strong magnet school options for families willing to navigate them. Best for families stationed at Andrews, working in Southeast DC, or at Fort Meade. Explore verified PG County agents before you fly out.

Reston and Herndon, Virginia. Silver Line Metro access, strong Fairfax County schools, and more house per dollar than Arlington or Bethesda. Median around $550-650K for townhomes and small single-families.

Washington DC right now. Because of the 8.6 months of supply, DC is genuinely more affordable to buy in today than it has been in several years. If you are stationed at JBAB, working downtown, or flexible on commute, it deserves a real look. The math has shifted since 2023.

Where the value is not

Bethesda and Chevy Chase. These are premium assets and they will hold value, but you are not getting a bargain. If top schools and walkable downtown are non-negotiable, the premium is earned. If you can flex on either, keep looking. Deep comparison: Bethesda vs Chevy Chase: where to buy in 2026.

Arlington single-family homes. Still one of the most expensive price-per-square-foot markets in Virginia. Arlington makes sense if you need to live close to the Pentagon or Rosslyn. It does not make sense as a cost optimization.

Far-out Virginia if you work in Maryland, or vice versa. Crossing the river every day adds 30+ minutes each way and burns through your commute tolerance. Live on the same side of the Potomac as your job.

Get pre-approved with a verified DMV lender first

Before you start narrowing neighborhoods, you need a real pre-approval number from a lender who knows this market. Stephen Fox is one of our top verified DMV lenders and closes VA, FHA, and conventional loans across Virginia, Maryland, and DC. Or browse other verified lenders on smover to compare before you commit.

A strong pre-approval in hand is the difference between making an offer that gets accepted and watching a house go to someone else with faster paperwork.

What to do this week

1. Lock your budget by jurisdiction. Use the table above to estimate your real monthly cost, not just the mortgage. Add childcare, taxes, and commute honestly.
2. Pick two target neighborhoods on one side of the Potomac. Not four. Not across the river. Two.
3. Get VA pre-approved this week with Stephen Fox or another verified DMV lender. This takes 48 to 72 hours with a responsive lender.
4. Interview 2 to 3 agents who close in your target neighborhoods. Find verified smover agents by city.
5. Check the commute at the actual time your spouse or you will drive it. 7:40am from Stafford to the Pentagon is a different drive than 11am.

Read next

• The pillar for everything DC metro: PCS to the DC metro: a 2026 relocation guide
• Best DC suburbs for families: Best DC suburbs for families relocating in 2026
• School districts deep-dive: Best school districts in the DC suburbs in 2026
• Deciding between Montgomery and Prince George's: Montgomery County vs Prince George's County cost of living

Frequently asked questions

Is Virginia or Maryland cheaper to live in near DC?

For comparable home sizes, Northern Virginia is generally cheaper on a total-cost basis thanks to Virginia's lower income tax. A household earning $175K saves roughly $4,000 per year in Virginia versus Maryland. Maryland has strong school systems that may justify the cost for families who prioritize them.

What is the cheapest DC suburb with good schools?

Reston and Herndon, Virginia offer the best balance (Fairfax County schools, Silver Line Metro, median $550-650K). In Maryland, Rockville and Gaithersburg offer MCPS schools at slightly lower prices than Bethesda. For absolute value, Prince William County (Virginia) and Prince George's County (Maryland) offer significantly more house per dollar with longer commutes.

Does Virginia tax military retirement pay?

No. Virginia fully exempts military retirement pay. Maryland partially taxes it with exemptions up to $12,500 under 55 and $20,000 at 55+. DC does not tax military retirement.

Is DC a buyer's or seller's market in 2026?

DC proper is a buyer's market as of April 2026 (8.6 months supply). Fairfax and Montgomery Counties are seller's markets (1.9 and 2.4 months). Know which market you are entering before you write an offer.

How much is childcare in the DC metro?

Infant daycare runs $2,200 to $3,100 per month. Preschool $1,500 to $2,300. After-school care $600 to $1,200. Apply for on-base CDC the day you receive orders; waitlists are long.

Market data on this page updates weekly from Redfin county data, Federal Reserve Economic Data (FRED), and Mortgage News Daily. Last data refresh: April 6, 2026 (county metrics) and April 17, 2026 (mortgage rates). Reviewed quarterly; refreshed when county-level year-over-year shifts exceed 10% or mortgage rates move 50+ basis points.