What Is the Average Cost of Living in Washington DC?

For a single adult homeowner, you could be looking at $60,000 to $80,000 a year, bare minimum, to cover basic expenses—mortgage, utilities, groceries, transportation, insurance, personal spending. For a small family, especially if you’re factoring in child care, that could jump to $90,000 to $130,000 or more.

What are Home Prices in Washington, D.C?

Median home prices hover around $600,000 to $650,000. That might seem high, but it’s a reflection of tight inventory, high demand, and a relatively small footprint—only about 68 square miles of city to fight over.

Townhomes and row houses near popular neighborhoods like Capitol Hill, Logan Circle, or Columbia Heights can easily push $700,000+, even if they’re not entirely modern inside. Single-family detached homes in more suburban-feeling areas like Chevy Chase D.C. or Palisades will often surpass $1 million. You can learn more about the Best Washington DC Neighborhoods here.

Condos and Co-ops

Not everyone goes for a row house. Condos and apartments are huge here, and they can range from $300,000 to $1 million+, depending on size, location, and amenities. Co-ops, popular in certain Northwest neighborhoods, might look cheaper at first glance but factor in monthly co-op fees, which can be hefty (anywhere from $400 to well over $1,000 a month).

Closing Costs and Transfer Taxes

Expect 2.9% of the purchase price for properties over $400,000 (it’s lower for properties under that threshold, but still not negligible). On a $600,000 home, that’s nearly $17,400 just for transfer and recordation taxes. Combined with lender fees, title searches, and other closing costs, it adds up. Don’t let these expenses sneak up on you.

What Should I Expect to Pay for Utilities?

Heating and Cooling

Expect an average monthly electric bill around $90 to $140. If your home uses gas for heating or cooking, that can run another $50 to $90 in the colder months. Historic houses may lack modern insulation, so your housing expenses could spike if you’re not energy-conscious.

Water and Sewer

District water and sewer rates fluctuate based on usage, but a typical monthly bill lands in the $40 to $70 range for a single-family home. Older properties with leaking pipes or large lawns can push you higher.

Internet and Other Services

You might pay $60 to $90 for a solid high-speed plan. Add cable TV, and you could hit $100+ monthly. Many D.C. residents cut the cord and stick to streaming services. It’s a small but meaningful monthly difference.

How Much Do Groceries and Food Cost in Washington, D.C?

A single person might spend $300 to $450 a month, while a family of four could see $800 to $1,200. If you shop at higher-end stores like Whole Foods or Trader Joe’s in certain neighborhoods, you’ll feel the pinch. Cheaper food and grocery chains exist, but you might need to drive or take the Metro a bit farther out to find them.

Eating Out

Expect $15 to $30 per entree at less expensive restaurants. At higher-end spots, you could easily drop $50 to $80 per person. Don’t forget the 10% sales tax on restaurant meals. If you’re a regular diner-outer, it adds up fast.

Local Quirks

D.C. doesn’t tax groceries for home consumption (similar to many states), but it does tax prepared foods and beverages. If you regularly pick up “to-go” meals, those taxes will show up on your receipt. Not the biggest cost in the grand scheme, but every bit chips away at your monthly budget.

What Are the Taxes in the District of Columbia?

Income Taxes

D.C. has its own income tax brackets. They’re progressive, ranging from around 4% on the low end to 10.75% for higher earners. Once you hit about $100,000, you could be paying 9.25%, and it steps up from there. On top of that, you don’t have state taxes because D.C. is not a state, but you’re paying local income tax to the District.

Sales Tax

The general sales tax is 6%. But D.C. loves specific taxes. Eat out at a restaurant, and you face 10%. Hotel rooms come with even heavier taxes. It’s not a huge difference for day-to-day living unless you dine out a ton. Still, it’s worth noting these distinct rates.

Property Taxes

On paper, the real property tax is around $0.85 per $100 of assessed value. But keep an eye on how D.C. assesses your property—it can be closer to market value, and with rising home prices, that bill can climb. For a $600,000 home, your annual property tax might be $5,100, give or take. If your home’s assessed for more (and many are), be ready.

What Are the Child Care Costs in Washington, D.C?

Daycare and Early Education

A decent daycare can run $1,400 to $2,000 per month, per child. Some swankier or specialized programs push beyond that. If you’ve got two kids under five, you’re looking at mortgage-level monthly child care costs.

Nanny vs. Daycare

Hiring a nanny might seem appealing, but full-time rates can be $18 to $25 per hour, or around $3,000+ per month if you need standard nine-to-five coverage. Nanny shares, where two families split the total cost, can help a bit, but it’s still not cheap.

Public Pre-K and Assistance Programs

D.C. offers universal pre-K for three- and four-year-olds, which can lower costs once your child hits that age. Some families rely on this to ease the financial strain after a few years of pricey daycare. Also, the city has certain child care subsidies for qualifying households, but strict income thresholds apply.

What Are the Healthcare Costs in Washington, D.C?

Insurance Premiums

If you work for a big employer (federal government, tech company, NGO), you might get decent health insurance coverage. 

But employee contributions can still run $200 to $500 a month for single coverage, and $600 to $1,200 for family coverage, depending on the plan. If you’re self-employed and going through D.C.’s health exchange, expect monthly premiums from $400 to $600 for a Silver plan if you’re relatively young and healthy. Families will see that multiplied.

Out-of-Pocket Living Expenses

D.C. has some top-tier hospitals like MedStar Georgetown and GW Hospital. Great care, but not cheap. Co-pays can be $20 to $50 for primary care, and up to $80+ for specialists. Lab work or procedures can spike your monthly bills, especially if you haven’t met your deductible.

The D.C. Healthcare Advantage?

if you’re low-income, D.C. has historically offered more expansive Medicaid eligibility. That doesn’t help higher earners but is worth noting if you find yourself between jobs or adjusting to self-employment.

 How Much Do I Need to Earn to Live Comfortably in Washington, D.C?

Singles vs. Families

A single person buying a modest condo and being mindful of spending could scrape by on $70,000 to $80,000 a year, though saving might be challenging. For a small family that wants to buy in a neighborhood with decent schools, especially if child care is in the mix, you’re likely looking at a household income of $120,000+ to maintain a more comfortable lifestyle.

Some people cut costs by living in smaller spaces, house-hacking with roommates, or going for up-and-coming areas in Southeast D.C. near the waterfront. Salaries can go far if you’re strategic and not chasing the hottest blocks. But if you’re looking at a move to D.C. because of a job that pays below $60,000, be prepared to compromise on your housing or your savings.

Wrapping Up Cost of Living in DC

D.C. is an expensive city, and the home-buying process comes with extra taxes, fees, and a high-pressure market. 

But the city also offers global cultural experiences, a robust job market, and a chance to be at the political center of the country. If you’re set on D.C. as your next place to live, at least know the real numbers before you dive in. 

Crunch the math, think hard about neighborhood trade-offs, and if you still want the District’s energy and culture, make your move. 

You’ll know exactly what you’re signing up for.

Cost of Living in Washington, D.C FAQs

1. What’s the average monthly cost for one person living in D.C.?

Expect to pay around $2,500 to $3,500 per month if you’re covering a mortgage, utilities, groceries, and some social life. That range depends on whether you own a small condo vs. a row house, and how often you’re eating out.

2. Is $100,000 a decent salary to live comfortably in D.C.?

You can manage on $100,000 if you’re single or have a partner also earning. You’ll cover a mortgage in a cheaper neighborhood, pay bills, and have some discretionary income. For a family with child care costs, $100,000 might still feel tight. You'll need to earn more if quality of life is important.

3. Can I lower my monthly expenses by living in the suburbs and commuting in?

Plenty of people do this, moving to places like Northern Virginia or Maryland. You might find cheaper housing or property taxes, but you’ll trade off with longer commutes and sometimes higher state income taxes. Factor in Metro or driving costs and weigh whether the suburban lifestyle suits you.

4. How do I live comfortably in D.C. on a budget?

Focus on smaller properties in less hype-driven neighborhoods. Make use of public transit instead of owning multiple cars. Seek out cheaper grocery chains, cook at home more often, and keep a close watch on your dining-out budget. Explore universal pre-K for child care once kids hit age three or four.

5. What’s a hidden cost people don’t often think about?

Parking and commuting can sneak up on you. Monthly parking garages in dense areas can cost $200 to $300. If you drive daily, city insurance rates and potential parking tickets or fees add up. Even if you rely on the Metro, factor in $2 to $6 each way depending on your travel zones.