Boston, MA Cost Of Living

Boston cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
Index	Boston	Massachusetts	National
Cost of living index	148	131	100
Index	Boston	Massachusetts	National
Goods & Services index	130	120	100
Groceries index	106	107	100
Health care index	135	120	100
Housing index	204	165	100
Transportation index	111	106	100
Utilities index	141	123	100

An overview of the general cost of living index for Boston, MA is displayed above for your reference. Residents in Boston, MA enjoy a cost of living index of 148. This index is 13% higher than the Massachusetts average, and 48% higher than the national average. The following categories are used when determining the cost of living index for any given city: health care (5%), transportation (9%), utilities (10%), groceries (13%), housing (30%), and goods/services (33%). Clearly, housing and goods/services make up the majority of the formula for calculating the cost of living index. Because of this, the general cost of living for any given area can be estimated by looking at the cost of everyday goods in that area. For those living in Boston, MA, the average cost of goods and services is 8% higher than it is in Massachusetts, and it is 30% higher than the national average.

Did you know?

The cost of living in Boston is 13% higher than the Massachusetts average.
The cost of living in Boston is 48% higher than the national average.
The cost of housing in Boston is 104% higher than the national average.
Massachusetts general sales tax is 23% higher than the national average.
Massachusetts state income tax is 129% higher than the national average.

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Cost of living index
Goods & Services index
Groceries index
Health care index
Housing index
Transportation index
Utilities index

Use the salary calculator to compare your current income in Boston, MA to any other city in the country. The calculator will tell you how much income you would need to make in a particular city to live at the same level based on the cost of living in each city. For example, if the cost of living in the city you are looking to move to is higher than that of Boston, MA, then you would need to earn a higher salary in order to enjoy the same standard of living. To use the Boston, MA salary calculator, enter the name of the new city, then move the slider to your current salary level. The salary calculator will do the rest and let you know if your salary would need to increase or decrease for the new city. You will also see a complete overview of the cost of living.

Median Income & Debt-To-Income Ratio

Median Income	Per Year	Per Month	Max Budget (28% DTI)	Max Budget (36% DTI)
Owners	$100,584	$8,382	$2,347	$3,018
Renters	$40,766	$3,397	$951	$1,223

The affordability of the housing market in Boston, MA as well as the overall cost of living can be indicated accurately by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should ever be used on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Boston, MA homeowners, the median income is $100,584. This indicates that a monthly maximum of $2,347 should be spent by homeowners on all housing related costs. Renters have a median income of $40,766. This indicates that renters should have a maximum of $951 used for their rent related monthly costs.

Massachusetts Sales Tax

State	General Sales Tax	With Max Surtax
Massachusetts	6.25%	6.25%

Massachusetts Income Tax

State	Income Tax (Low)	Income Tax (High)
Massachusetts	5.1%	5.1%

One thing to keep in mind when considering the cost of living in Boston, MA is the Massachusetts sales tax and Massachusetts income tax rates. Sales taxes are taxes that are collected on most goods or services sold. Sales taxes can vary by state and can be as high as 7% and as low as 0% as not every state imposes a sales tax. The Massachusetts sales tax rate is 6.25% and the maximum surtax that can be charged is 6.25%. Income tax is the tax imposed on income by both the federal and state government. The income tax rates varies by individual state and will also be higher or lower depending on the applicable tax bracket. The rates of state income tax can vary from 0% to more than 9%. The Massachusetts income tax rates range from 5.1% to 5.1%.

Goods & Services

Item	Boston	National avg.	Difference
Haircut	$21.98	$16.09	36.7%
Beauty Salon	$51.87	$37.33	38.9%
Toothpaste	$2.26	$2.45	7.8%
Shampoo	$1.05	$1.00	4.6%
Movie	$13.47	$10.28	31.0%
Bowling	$8.95	$4.93	81.4%

Groceries

Item	Boston	National avg.	Difference
Ground Beef	$3.72	$3.80	2.3%
Fried Chicken	$1.56	$1.40	11.9%
Milk	$1.98	$2.01	1.5%
Potatoes	$3.73	$3.01	23.9%
Pizza	$10.62	$9.89	7.5%
Beer	$9.97	$8.90	12.0%

Health Care

Item	Boston	National avg.	Difference
Optometrist	$105.58	$102.16	3.4%
Doctor	$190.52	$108.36	75.8%
Dentist	$126.73	$92.53	37.0%
Ibuprofen	$9.19	$9.28	1.0%
Lipitor	$419.01	$425.82	1.6%

Housing

Item	Boston	National avg.	Difference
Home Price	$423,200.00	$184,700.00	129.1%
Avg. Mortgage Payment	$2,207.99	$1,202.44	83.6%
Apartment Rent	$1,369.00	$949.00	44.3%

Transportation

Item	Boston	National avg.	Difference
Gasoline	$2.25	$2.24	0.1%
Tire Balancing	$61.72	$46.29	33.3%

Utilities

Item	Boston	National avg.	Difference
All Electricity	$238.05	$165.96	43.4%
Phone	$39.99	$28.68	39.4%

Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

Nearby cities with low cost of living

City, State	Population	Cost of Living Index	National Avg.
Southfield, MA	0	125	25%
Lynn, MA	92,074	127	27%
Randolph, MA	33,526	130	30%
Chelsea, MA	38,244	130	30%
Salem, MA	42,804	134	34%
Boston, MA	658,279	148	48%

Cities with similar population

City, State	Population	Cost of Living Index	National Avg.
Washington, DC	659,009	152	52%
Memphis, TN	655,857	82	-18%
Denver, CO	663,303	115	15%
Seattle, WA	668,849	159	59%
Nashville, TN	643,771	98	-2%
Boston, MA	658,279	148	48%

Source: The Boston, MA cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for 2017.

Boston, MA Cost of Living