Cost of Living in Massachusetts — Housing, Taxes & Everyday Expenses
World-class universities, biotech hub, very high housing costs
Data: 2026-Q2 · BLS · HUD · KFFOverview
Massachusetts is a global center for education, biotech, and finance. Boston and Cambridge offer exceptional career opportunities but at very high housing costs.
Housing costs
Median 1BR rent in Boston is approximately $2,800-$3,200. Cambridge is similar. Worcester and Springfield are more affordable at $1,200-$1,500.
1BR FMR across major Massachusetts cities: $2,476 – $2,476/mo (HUD FY2026)
Tax reality
9.0% effective top rate 2025 (5% base + 4% surtax on income >$1M)
Everyday expenses
At a cost of living index of 150, Massachusetts is about 50% more expensive than the national average of 100. Despite a relatively moderate 5% flat tax, Massachusetts housing costs — especially in Boston — severely compress purchasing power for most income levels.
City comparison
Salary reality in Massachusetts
Cost of Living in Massachusetts — FAQ
What is Massachusetts's income tax rate?
Massachusetts has a flat income tax rate of 5% for most income, plus a 4% surtax on income over $1 million (the 'millionaires tax' passed in 2022).
Is Boston affordable?
No. Boston is one of the most expensive cities in the U.S., with 1BR rent averaging $2,800-$3,200. The overall Massachusetts cost of living index is approximately 150.