Here's what you can expect to pay for living costs in this affluent East Coast state.
The Pilgrims landing at Plymouth Rock. The infamous Salem witch trials. The Boston Tea Party. New England fall foliage. Clam chowder. Harvard University. What do all these iconic places, things and events have in common? Massachusetts.
Living in this popular New England state, you're living surrounded by the early history of the United States, from the first public library and the first Thanksgiving. You have access to world-class higher education at Massachusett's many esteemed universities and colleges.
From fall foliage to breezy beaches, its landscapes capture that perfect mental picture of New England's nature. It's the home of Boston, one of the most popular cities on the East Coast. Also, you can't beat the clam chowder and seafood.
Massachusetts also boasts a high median household income of $84,385. But, as one of the most desirable states to live in New England, the cost of living in Massachusetts often exceeds the national average. Boston, in particular, is very expensive. But other cities around the state are cheaper. Just because the cost of living is particularly high in one area doesn't mean the entire state is unaffordable. The right place to live in Massachusetts depends on your budget and lifestyle. Here's what you can expect in terms of the cost of living expenses around Massachusetts in 2022.
- Housing costs
- Food prices
- Utility costs
- Transportation costs
- Healthcare costs
- Goods and services costs
- Tax rates
- How much do you need to earn to live in Massachusetts?
Massachusetts housing prices
Housing costs in Massachusetts are higher than the national average. This is true even of small cities located far from major metro areas. The average cost for an apartment or rental in small towns and cities around the state is higher than in other similarly-sized towns elsewhere. Rates are generally still manageable, though. Especially if you're living in a small- or mid-sized college town, you won't lack roommate options. But, in some cities, the cost of living in Montana for housing is scarily high.
This is what you can expect to pay for housing in two different Massachusetts cities. One is at the extreme western edge of the state, with a population of around 42,500. The closest big cities are Springfield and Albany, both roughly an hour away. The other city is at the complete opposite end of the state. It's the most populous city in the state and a major, influential East Coast urban center.
Boston
You must really like baked beans and the Red Socks to put up with the cost of housing in Boston, which is 120.9 percent higher than the national average. This puts it up there among the most expensive places to live in the United States.
You can expect to pay around $3,887 for a one-bedroom apartment in the city. A two-bedroom apartment kicks things up significantly to $4,982. These prices are up 9 and 10 percent, respectively, from the previous year.
Home prices here exceed the statewide median sales price. Buying a home in Boston has a median sale price of $780,000, which is 3.6 percent higher than last year.
Pittsfield
Housing costs in the charming, peaceful city of Pittsfield in western Massachusetts are 12.5 percent higher than the national average. Prices are also on the rise. The average rent for a one-bedroom apartment is $1,250 per month, which is up 14 percent from last year. The cost for a two-bedroom has climbed even more. Jumping 57 percent from last year, the average two-bedroom apartment around town will set you back $1,450.
The cost of buying a home here is also rising. Up 37.2 percent from last year, the median sales price for a house around Pittsfield is $269,500. However, since the median home sale price around the state is $560,000, Pittsfield prices are a steal.
Food prices
People in Massachusetts love food. It's no surprise why. Boston is a bonafide foodie destination thanks to its namesake baked beans and cream. The lengthy Massachusetts coastline serves up all kinds of fresh and delicious seafood like clams and lobsters.
Massachusetts is among the top five states for most expensive average grocery costs. Massachusetts residents shell out between $3,601 to $4,000 a year per person for food. So, consequently, the cost of living in Montana for food is higher than the national average.
Boston comes in first place for the highest food costs in the state. Pittsfield ranks a more reasonable amount above the national average:
- Boston is 16 percent above the national average
- Pittsfield is 7.3 percent above the national average
Doing a line-by-line comparison of food costs in the two cities reveals that most staple food items have fairly similar costs. Picking up a half-gallon of milk in Boston costs $2.76. Pittsfield is slightly cheaper at $2.52. A dozen eggs cost almost exactly the same at $2.22 in Boston and $2.23 in Pittsfield. Steak lovers will prefer Pittsfield over Boston when it comes to steak prices. You'll be paying $17.92 for steak in the City on a Hill, but a more affordable $11.68 on Pittsfield.
Since Boston is such a big food town, expect to pay more for dining out, as well. Going out to a three-course meal at a nice restaurant for date night costs $82.50 compared to $69.50 in Pittsfield. You'll pay the same for a casual meal out in both cities at $20.
Utility prices
Electricity, internet and water are the biggest slices of the utility pie. Massachusetts gets its energy and electricity from a mix of renewable and non-renewable energy sources. These include hydropower, coal and nuclear. Natural gas is the biggest supplier.
Utilities are the one area where Pittsfield or Boston dip below the national average for cost of living:
- Pittsfield is 5.1 percent below the national average
- Boston is 23.5 percent above the national average
Similar to its other cost of living categories, Boston residents pay more for utilities. Total energy costs for the month total around $250.47. But in Pittsfield, you'll be paying around $161.38. But, in a twist, the internet is more expensive in Pittsfield than in Boston. Paying for 60 megabits per second in Pittsfield costs $104.33. But, in Boston, you'll only pay around $62.40. That's a difference of 67 percent.
Transportation prices
From buses to subway to ferry routes, there are tons of different ways to get around Massachusetts' cities and towns. Not only does it save on gas, parking and other car-related expenses, but you can watch charming college towns or scenic bays glide by. Big cities like Boston have huge transit providers, and Massachusetts also has a robust regional transit system. Fifteen different agencies provide regional public transportation in smaller cities and towns around the state.
However, the cost of living in Massachusetts for transportation in all these cities is higher than the national average. So, while you save money on your car, you'll be pay more for transportation than the average American:
- Boston is 21.1 percent above the national average
- Pittsfield is 23.2 percent above the national average
The cost of transportation in Pittsfield and Boston is pretty close. But Pittsfield beats Boston slightly for transportation prices. Here's what you can expect to pay to ride local transit in these two cities.
Berkshire Regional Transit Authority in Pittsfield
This bus-only agency provides public transportation to the residents of Pittsfield and surrounding Greater Berkshire County. It operates 14 fixed bus routes, as well as paratransit services.
A single ride within the local network costs $1.75 if you pay in cash. Paying with a Charlie Card knocks off 20 cents, bringing it down to $1.55. A 30-day pass costs $52. For systemwide access, fares start at $4 with the Charlie Card and a 30-day pass is $140.
Public transportation around Pittsfield has a low transit score of 30. If you don't want to take the bus or your car, there are other ways to get around town. As a safe, close-knit community, it's easy to navigate town on foot. This is especially true of the downtown area and family-friendly neighborhoods. Pittsfield scores a high 70 for walking. But, it's not so bike-friendly, ranking only 48 on the bike score.
Massachusetts Bay Transportation Authority in Boston
Boston gets its public transportation from the MBTA. Locals call it the “T". Their fleet and services consist of bus routes, subway, rail and water ferry routes. Their service extends beyond the city of Boston to the Greater Boston metro area. It has 177 bus lines, three ferry routes and four subway lines accessing 128 stops.
MBTA fares vary depending on what type of service you're using. A one-way adult ticket on the subway costs $2.40 with cash or Charlie Card. A single bus fare is $1.70. For the commuter rail and ferry, fares encompass a range based on the route or distance traveled. A one-way ferry ride costs between $3.70 and $9.75. On the commuter rail, you pay between $2.40 and $13.25 depending on how far you travel.
Passes similarly vary. A subway and bus day pass is $12.75. A monthly LinkPass for the two costs $90 with unlimited travel. Commuter rail monthly passes are as low as $90 and as high as $426. You'll pay between $90 and $329 for a monthly ferry pass. Since monthly parking passes around Boston average $300, you need to decide for yourself if using public transit offers enough savings or convenience. If you choose to drive, you'll have to pay tolls on the Massachusetts Turnpike. Toll rates depend on the length of time you're using the toll road to use one of the harbor tunnels or go out to Logan Airport. Rates start at around $1.75 for two-axle vehicles.
With such diverse public transportation options, it's no surprise Boston has a high transit score of 80. Its dense urban center and vibrant neighborhoods are why Boston also has very high walk and bike scores. This ultra-pedestrian-friendly city boasts a stellar 89 walk score and 77 bike score.
Healthcare prices
Similar to many other costs of living categories, the cost of living for healthcare around Massachusetts is higher than the national average. But that number is extremely subjective. Health, and therefore, healthcare costs can vary widely by person, even within the same city. Some people have to pay more for prescriptions, higher insurance premiums, out-of-pocket costs for check-ups and more. This is why it's so difficult to find the average healthcare cost of an area and you should take any statistics or figures with a grain of salt. Here's how these two Massachusetts cities stack up to the national average:
- Pittsfield is 15.1 percent above the national average
- Boston is 17 percent above the national average
That being said, Massachusetts has it pretty good healthcare-wise. The state is consistently ranked as being one of the healthiest nationwide, as well as having the best healthcare. It's home to renowned hospitals like the Boston Children's Hospital and Massachusetts General Hospital. Since Massachusetts is famous for its top universities, it also has many top-tier medical schools and leading research facilities. With universities around the state producing world-class doctors, nurses and healthcare professionals, naturally state hospitals staff the best.
Even for such a healthy state, it's important to still go to see your doctors at least once a year. Out-of-pocket costs for a doctor visit cost roughly the same in both cities at $182.50 in Boston and $185 in Pittsfield. Going to the dentist in Boston is slightly pricier at $131.50 compared to Pittsfield's $117. Even with higher costs above the national average, you're still paying for the best in healthcare.
Goods and services prices
Spilled some baked beans on your shirt and need to take it to the dry cleaners? Going to get your hair cut before a sunny afternoon out in Pittsfield? These various services and items fall under the category of miscellaneous goods and services. While these may seem like small expenditures, they can add up fast. This is especially true in big cities like Boston. That's why you need to consider how expensive these items and services are in a particular state. The average cost of living for goods and services in Massachusetts cities is above the national average:
- Pittsfield is 8.2 percent above the national average
- Boston is 19.9 percent above the national average
Just because one city has the highest overall rates doesn't mean all services are more expensive. For that dry-cleaning run, you'll actually be paying more in Pittsfield. It costs $23 to go to the dry cleaners there, but $16 in Boston. In Boston, it's better to let your hair grow longer than pay $43.33 for a cut. Or, drive over to Pittsfield and get it done for half at $23.
Taxes in Massachusetts
Since you'll also be paying taxes on those goods, services, food and other essentials, it's important to know how much is going to tax. Massachusetts has a statewide sales tax rate of 6.25 percent. To put that into perspective, when you spend $1,000 on Red Sox tickets, you'll pay an extra $62.50 for taxes.
But that's all you'll be paying in tax. Massachusetts doesn't have any city or county sales taxes to add to the statewide rate. That means that:
- Pittsfield has a combined tax rate of 6.25 percent
- Boston has a combined tax rate of 6.25 percent
The other tax you need to consider is the income tax. A certain amount will come out of each paycheck, which impacts your monthly budget. In Massachusetts, income tax is a flat 5 percent. Massachusetts used to have high enough taxes that it earned the nickname Taxachusetts. But, they've cut taxes significantly to bring the rate down.
How much do I need to earn to live in Massachusetts?
Now the crucial question: Is life in Massachusetts within your means? Experts recommend not spending more than 30 percent of your gross monthly income on rent. The cost of living for housing in Massachusetts is generally the biggest slice of the monthly budget pie. You need enough left over for groceries, savings and other essentials and incidentals.
Considering the 30 percent rule, you'd need to make around $104,592 a year to afford Massachusetts' average rental rate of $2,615 for a one-bedroom apartment. That comes out to roughly $8,719 per month in income. Since the median household income in the state is $84,385, showing that housing is priced out of the average person's reach.
Cities like Boston are already getting prohibitively expensive. But, you may have more luck in smaller cities and towns.
Use our rent calculator to see if you can live comfortably in Massachusetts based on factors like monthly pre-tax income and expenses.
Living in Massachusetts
Massachusetts is not the cheapest state, and the cost of living is going up in many areas. Housing, in particular, is being hit hard. But living here has plenty of other benefits like fun cities, great access to the outdoors and all those great Boston foods. If you can comfortably afford the rising cost of living in Massachusetts, you, too can spend summers out on Cape Cod and study at world-class universities.
