United States
Cost of living in Massachusetts
Cost of living in Massachusetts sits at a Regional Price Parity of 105.8, 6 percent above the national benchmark and seventh among the 51 jurisdictions ranked. The state takes an unusual tax approach: a flat income tax rate of 5.0 percent on most income, with an additional 4 percent surtax applying to taxable income above approximately 1.08 million dollars, bringing the effective top rate to 9 percent. There is no standard deduction at the state level in the conventional sense; Massachusetts uses personal exemptions instead. The sales tax is 6.25 percent with no local additions, a design that simplifies calculation compared to states where local rates pile on. Greater Boston drives much of the state's cost premium, with housing costs that rank among the most expensive in the Northeast and have risen sharply over the past decade.
Price level
105.8
US = 100
National rank
7th
of 51, dearest first
Income tax
5%
flat
Sales tax
6.25%
state base rate
What your salary is worth in Massachusetts
Because prices here sit at 105.8 against the national 100, the same paycheck stretches differently than it would elsewhere. These figures hold buying power constant: the salary listed is what you would need in Massachusetts to live as you would on the reference amount in another place.
| Same lifestyle as | $60,000 | $100,000 |
|---|---|---|
| US average | $63,480 | $105,800 |
| California (dearest) | $57,344 | $95,574 |
| Arkansas (cheapest) | $73,049 | $121,749 |
Compare Massachusetts with anywhere in the US
To live the same in California you need
$73,242
to match $70,000 in Massachusetts
Price level, US = 100
The equivalent salary keeps your purchasing power constant: it is your pay scaled by the ratio of the two price levels. Regional Price Parities measure what a fixed basket of goods and services costs locally. Source: U.S. Bureau of Economic Analysis, 2024.
Massachusetts in context
The Greater Boston labor market, anchored by biotech, higher education, finance, and healthcare, supports wages that partially offset the high cost of living, but the offset is uneven. Entry-level and mid-career workers in fields outside those sectors face a cost structure that exceeds their compensation benchmarks. The flat income tax structure is notable: at 5 percent it applies equally to a 40,000-dollar earner and a 400,000-dollar earner (below the surtax threshold), which distributes the tax burden differently than the progressive structures found in neighboring Connecticut or New York. Outside Boston and the Route 128 corridor, cities like Springfield, Worcester, and Fall River carry lower housing costs and a more accessible price level, though they also have different labor market conditions. The absence of local sales tax additions is a consumer-friendly feature that keeps transaction costs predictable across the state. Massachusetts suits those in the life sciences, academic medicine, or technology sectors working in the Boston metro at competitive salaries.
The closest state above Massachusetts on price is Washington at 107. Just below sits Maryland at 105.
Frequently asked questions
Is Massachusetts expensive to live in?
Massachusetts sits at a price level of 105.8 where the US average is 100, so a typical basket of goods and services costs about 6% more than the national norm. That ranks it 7th most expensive of 51 states. Housing is usually the largest single driver of the gap.
What salary do you need in Massachusetts?
To match the buying power of $60,000 earned at the US average, you would need about $63,480 in Massachusetts. The figure scales with the price level: a place dearer than average needs more, a cheaper one needs less. Your own number also depends on housing choice and household size.
How much tax does Massachusetts charge?
Massachusetts applies a flat 5% state income tax and a base state sales tax of 6.25%. Flat 5% for 2025. Additional 4% surtax on taxable income above $1,083,150 (2025 inflation-adjusted threshold), making top marginal rate effectively 9%. No state standard deduction (uses personal exemptions). State sales tax 6.25%; no local sales tax. Local jurisdictions can add their own sales tax on top.
Cost of living in other states
Price levels are Regional Price Parities from the U.S. Bureau of Economic Analysis, Regional Price Parities (SARPP, MARPP), 2024 (public domain). State tax figures are the latest published rates from state revenue departments. All figures are estimates for general comparison and not financial advice; your own costs depend on housing, household size and lifestyle.