Cost of Living in Massachusetts 2026 — Housing, Income & Taxes

📊 Massachusetts at a Glance — 2026

Cost of Living Index

152

US average = 100 · High Cost

Median Household Income

$89,000

Source: U.S. Census Bureau ACS

Average 1BR Rent

$2,300/mo

Source: Zillow Observed Rent Index

State Income Tax

5.0%

Check official state rates

Average Home Price

$580,000

Source: Zillow Home Value Index

Salary Needed (30% rule)

$92,000

To keep housing under 30% of income

📈 Massachusetts vs the National Average

Cost of Living

152

Massachusetts runs 52% above the national average (index 152 vs. the U.S. baseline of 100). Massachusetts costs are driven by extremely limited housing supply in the Boston area relative to strong demand from its university and biotech sectors. On the tax side, Massachusetts applies a flat income tax rate, with an added surtax on very high earners known locally as the 'millionaire's tax'.

💡 What Salary Do You Need in Massachusetts?

Using the 50/30/20 budget rule, housing should cost no more than 30% of your gross income. With average rent at $2,300/month in Massachusetts, you need roughly $92,000/year to live comfortably without being housing-cost-burdened.

Find out exactly how much you take home after Massachusetts taxes

💰 Calculate Massachusetts Take-Home Pay → 🏡 See How Much Home You Can Afford →

Is Massachusetts expensive to live in?

Massachusetts's cost of living index is 152, where 100 is the U.S. average — that's 52% above the national average. Massachusetts costs are driven by extremely limited housing supply in the Boston area relative to strong demand from its university and biotech sectors. The biggest local industries are higher education and biotechnology (Boston/Cambridge), and finance, centered around Boston.

What is the average rent in Massachusetts in 2026?

A 1-bedroom apartment in Massachusetts averages $2,300/month as of 2026 (Zillow Observed Rent Index). That's set against a median household income of $89,000/year, so rent alone runs roughly 31% of the typical household's pre-tax income.

What salary do you need to live in Massachusetts?

Following the standard 30%-of-income guideline for housing, you'd want roughly $92,000/year to cover Massachusetts's average rent comfortably. That's a general rule of thumb, not a hard rule — your real number depends on debt, family size, and where in Massachusetts you're looking. Our free paycheck calculator shows your actual take-home pay after Massachusetts taxes.

Does Massachusetts have a state income tax?

Massachusetts applies a flat income tax rate, with an added surtax on very high earners known locally as the 'millionaire's tax'. The listed rate is 5.0%. Use our free paycheck calculator to see exactly how that affects your specific take-home pay.

🔗 More Free Tools

💰 PayCalc Pro — See your take-home pay after Massachusetts taxes 🏡 HomeBuy Calc — How much home can you afford in Massachusetts? 📊 Compare All 50 States — Cost of Living by State 2026

Cost of Living in Massachusetts 2026 — Full Guide

Massachusetts's cost of living index sits at 152, meaning it runs 52% above the national average. Massachusetts costs are driven by extremely limited housing supply in the Boston area relative to strong demand from its university and biotech sectors.

Massachusetts's Economy

Massachusetts's economy centers on higher education and biotechnology (Boston/Cambridge), and finance, with most of that activity concentrated around Boston. That local economic base shapes everything from job availability to how quickly housing supply responds to demand — a state built around a few large employers behaves very differently, cost-wise, than one with a diversified metro economy.

Housing Costs in Massachusetts

The average rent for a 1-bedroom apartment in Massachusetts is approximately $2,300 per month in 2026. Average home values sit around $580,000. Massachusetts costs are driven by extremely limited housing supply in the Boston area relative to strong demand from its university and biotech sectors.

Taxes in Massachusetts

Massachusetts applies a flat income tax rate, with an added surtax on very high earners known locally as the 'millionaire's tax'. The current listed rate is 5.0%. Combined with federal taxes, this determines your real take-home pay — use our free paycheck calculator to see the exact impact on your specific salary rather than relying on a statewide average.

Data Sources

Cost of living index data is based on the Council for Community and Economic Research (C2ER) methodology. Income figures are from the U.S. Census Bureau American Community Survey (ACS). Rent data is sourced from the Zillow Observed Rent Index. All figures represent approximations and should be verified with official sources for financial planning.

All data is for informational purposes only and is not financial or legal advice.

Cost of Living inMassachusetts 2026