Cost of Living in Potomac
Potomac's cost of living centers on a real, extreme housing premium and Montgomery County's maximum local income tax, partially offset by a comparatively low property tax rate.
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Learn moreAn extreme housing premium
Potomac's average home value ran $1,393,901 per Zillow -- more than double Montgomery County's own $627,198 average, and among the highest in Maryland.
Montgomery County's maximum piggyback income tax
Montgomery County levies Maryland's state-maximum 3.2% local piggyback income tax, a genuinely material cost atop Maryland's 10-bracket state income tax for Potomac's real, high-income resident base.
A comparatively low property tax rate
Montgomery County's effective property tax rate ran a real 0.87%, the 7th-lowest of Maryland's 24 counties -- though the dollar amount on a typical Potomac home still runs high given the area's substantial assessed values.
Key takeaways
- Potomac's average home value runs more than double the Montgomery County average.
- Montgomery County's 3.2% piggyback income tax is Maryland's state maximum.
- Montgomery County's 0.87% effective property tax rate is comparatively low, though dollar amounts run high given Potomac's home values.
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