Cost of Living in Massachusetts
Things cost about ▲ 6% more in Massachusetts than the national average.
What Things Cost in Massachusetts
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Massachusetts is expensive, ranking among the top five states for cost of living at roughly 30% above the national average. Boston drives the numbers: a world-class city with world-class housing prices, where the median home exceeds $700,000. But Massachusetts also has the infrastructure to justify some of that cost: the best healthcare system in the country, top-tier universities (Harvard, MIT, and dozens of others), a thriving biotech and tech economy, and public transit that actually works by American standards. Western Massachusetts (Springfield, Northampton, the Berkshires) offers dramatically lower costs, though the job market is thinner.
Massachusetts at a Glance
Taxes in Massachusetts
Massachusetts's state income tax tops out at 5% + 4% surtax. The combined sales tax averages 6.25%. Property taxes run about 1.04% of home value, which on a $560,000 median home means roughly $5,824/year.
Cities in Massachusetts
Ranked from least to most expensive. Index 100 = national average.
Explore Massachusetts
FAQ About Massachusetts
Boston's housing market is driven by a concentration of universities and hospitals, a large student and young professional population competing for limited housing, restrictive building regulations, and geographic constraints (water on three sides). The biotech corridor between Cambridge and the Seaport has brought enormous wealth and job growth without proportional housing construction. Median home prices in Boston exceed $722,800, and rents for one-bedrooms in desirable neighborhoods start around $2,500.
Yes, dramatically so compared to the Boston metro. Springfield has a median home price under $207,900, and the Pioneer Valley (Northampton, Amherst) offers college-town life at a fraction of Cambridge prices. The Berkshires attract cultural tourists and second-home buyers. The trade-off is a smaller job market and more limited services. For remote workers, Western Massachusetts can offer the Massachusetts lifestyle at a Midwest price point.
Approved by voters in 2022, it adds a 4% surtax on annual income above $1 million, bringing the effective top rate to 9%. The threshold is adjusted for inflation. Revenue is dedicated to education and transportation. This affects roughly 0.6% of taxpayers but is a significant consideration for high earners, business owners, and anyone with a large one-time capital gain from selling a business or property.