Massachusetts, known as the "Bay State", is a high-cost New England state driven by expensive housing in Boston metro. Here is everything you need to know about the cost of living in the Bay State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Massachusetts for a single person earning the median income of $89,700/year:
Each category shows how Massachusetts compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Massachusetts.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Massachusetts.
The most popular cities for residents and newcomers in Massachusetts:
Housing is the single biggest expense in Massachusetts, as it is everywhere. The median home price in Massachusetts is $585,000, and the median rent for a one-bedroom apartment is $1,700/month. With a housing cost index of 165, Massachusetts housing is 65% more expensive than the national average.
Housing affordability is a real challenge in Massachusetts. Many residents spend well over 30% of their income on housing. Consider looking at suburbs or smaller cities within the state for significantly lower costs.
Massachusetts has a state income tax rate of 5%. On the median household income of $89,700, you will pay approximately $4,485/year in state income tax ($374/month). This is below the national average — a tax advantage for Massachusetts residents.
The average single person in Massachusetts spends approximately $470/month on groceries. A family of four can expect to spend $1,175-$1,410/month. The food cost index of 107 means groceries in Massachusetts are 7% above the national average.
Gas prices in Massachusetts average $3.55/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $2,130/year in fuel costs.
Massachusetts healthcare costs are 18% above the national average (index: 118). The average annual healthcare cost per person in Massachusetts is approximately $7,080 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Massachusetts averages $1,500/month ($18,000/year). This is a significant expense that rivals rent in many areas. Many families in Massachusetts find that one parent staying home is more cost-effective when two or more children need daycare.
Massachusetts is a higher-cost state, but the higher expenses often come with higher incomes, better infrastructure, and more job opportunities. The median household income of $89,700 helps offset the 35% premium on living costs.
See all Massachusetts financial calculators:
Massachusetts (MA) has a cost of living index of 135, meaning it is 35% more expensive than the US average. Housing is the biggest factor with an index of 165. The median rent is $1,700/month and the median home price is $585,000. Massachusetts ranks #47 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Massachusetts is approximately $116,610/year ($9,718/month). For a family of four, aim for $197,340/year. This covers housing at 30% of income, groceries ($470/mo), transportation, healthcare, and a 15% savings rate. The median household income in Massachusetts is $89,700.
The median rent for a one-bedroom apartment in Massachusetts is approximately $1,700/month. A two-bedroom averages $2,295/month. Rent varies significantly by city: Boston, Worcester, Springfield are the most popular metro areas. Housing costs in Massachusetts are above average — budget carefully.
Massachusetts is a more expensive state (COL index 135), but offers strong job markets and high median incomes ($89,700). Popular areas include Boston, Worcester, Springfield.
The most affordable areas in Massachusetts are typically smaller cities and rural areas away from the major metros. Within Massachusetts, costs can vary 20-40% between the most expensive city (Boston metro) and more affordable areas. Cambridge and Lowell tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Massachusetts for a single person is approximately $470 ($1,175 for a family of four). Massachusetts food costs are 7% above the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Massachusetts is approximately $180. Total utilities (electric, gas, water, internet) average $396/month. Massachusetts utilities are 25% above the national average. Extreme temperatures drive higher heating/cooling costs.
Massachusetts has a state income tax rate of 5%. On the median household income of $89,700, that is approximately $4,485/year in state income tax. This is below the national average — a tax advantage.