Everyone knows that the DC area is an expensive place to live. Real estate prices and property taxes are among the highest in the nation. Not to mention that everyday necessities like groceries and gas cost more here, making the cost of living in the Washington DC area quite steep.

Within the DC area, certain cities are more expensive than others. Here we’ve outlined the cost of living in the Washington DC area using various tax rates (property, income, and car) for the major nearby jurisdictions in Virginia and Maryland, plus the District.

PROPERTY TAX RATES

All property tax rates are per $100 of assessed home value.

VIRGINIA

• Falls Church City – $1.210
• Manassas City – $1.26
• Fairfax County – $1.14
• Loudoun County – $0.865
• Alexandria City – $1.135
• Fairfax City – $1.14
• Arlington County – $1.043
• Prince William County – 0.920

MARYLAND

• Montgomery County – $ 0.87 base plus*
• Prince George’s County – $.082

Washington DC $0.85

Be sure to read our related post on property taxes and their benefits.

STATE INCOME TAX

State-level income tax rates are not standardized like the federal government’s. In fact, several states do not even have an income tax, relying on other funding sources for their service and programs. All three jurisdictions in the DMV have income taxes. Please check each jurisdiction for your specific tax bracket based on your personal income.

In 2025, our local state income tax rates are:

• Maryland: 2 to 5.75 percent with 6 tax brackets.
• Virginia: 2 to 5.75 percent with 4 tax brackets.
• DC: 4 to 10.75 percent with 7 tax brackets.

CAR TAX

Virginia is the only state of the three to levy a personal property tax, or as it is more commonly known, “car” tax. Virginia residents pay a 4.15% Sales and Use Tax. On average, Virginians pay $966 a year in vehicle-related taxes.

THE BOTTOM LINE

While the District has the highest state income taxes, they are offset by relatively low property tax rates. Montgomery County property taxes vary greatly depending on the jurisdiction. Be sure to check the specific rates of the various jurisdictions you’re considering – they can make a big difference in your monthly housing costs.

Are you trying to decide which part of the DC metro area to call home? We’d love to help. Let’s start the conversation or better yet, sign up for one of our neighborhood orientation tours.

**Legend:

• BLUE – lower than last year
• RED – higher
• BLACK – no change

Are you trying to decide which part of the DC metro area to call home? We’d love to help. Let’s start the conversation or better yet, sign up for one of our neighborhood orientation tours.

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