| Index | Reading | Massachusetts | National |
| Cost of living | 161 | 131 | 100 |
| Groceries | 108 | 109 | 100 |
| Health care | 116 | 116 | 100 |
| Housing | 274 | 169 | 100 |
| Transportation | 112 | 115 | 100 |
| Utilities | 115 | 117 | 100 |
| Lifestyle & Entertainment | 116 | 115 | 100 |
| Household Items | 107 | 109 | 100 |
| Education & Childcare | 122 | 127 | 100 |
Understanding the cost of living in Reading can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Reading cost of living index is 161, which is 61% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.
If you're in pursuit of an economical living environment, Reading may not fit the bill, as it ranks among the most expensive places to reside in the United States. Just a minority of regions exhibit a cost of living that is more than 20% higher than the national average, and, unfortunately, Reading falls within this bracket.
When it comes to the cost of living in Reading, housing costs are a real heavyweight, often hogging a significant chunk of your earnings. Sadly, in this area, housing expenses for both buying and renting were 174.4% more expensive compared to your average city. That means you'll be shelling out more for homes, rents, mortgage rates and insurance.
Wondering if Reading is affordable? It's a question that often comes up when you're thinking about a new city since affordability can really shape your decisions. The cost of living index (covered earlier), housing expenses and income levels all play a part in the affordability equation. In Reading, for example, the median home price is 230.4% higher than what folks pay nationally, and monthly rent is 43.6% higher than the usual rates. Plus, income levels matter too, with Reading boasting a median household income of $195,234, which is 140% higher than the national average.
Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Reading comes in at 15.3% higher than the national average.
Subsidies: Certain cities or states may implement government subsidies or assistance programs with the goal of alleviating the cost of living pressures on their residents. These programs encompass a broad spectrum of support mechanisms, including Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas offering fewer subsidies may experience a rise in their cost of living.
Taxes: Cities that impose higher taxes, including sales and income taxes, can contribute to an escalated cost of living. The added expense of taxes on everyday goods like clothing and food naturally results in higher overall costs. Similarly, a higher income tax rate can further elevate the cost of living. In Reading, the general sales tax rate starts at 6.25%, and income tax rates begin at 5%.
The Reading cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.
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| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $222,812 | $18,568 | $5,199 | $6,685 |
| Renters | $61,311 | $5,109 | $1,430 | $1,840 |
| State | General Sales Tax | With Max Surtax |
| Massachusetts | 6.25% | 6.25% |
| State | Income Tax (Low) | Income Tax (High) |
| Massachusetts | 5% | 9% |
| City | Population | Cost of Living Index | National Avg. |
| Lawrence, MA | 82,025 | 125 | 25.4% |
| Lowell, MA | 114,170 | 126 | 25.9% |
| Methuen Town, MA | 51,590 | 131 | 30.9% |
| Lynn, MA | 97,235 | 134 | 34.4% |
| Salem, MA | 44,881 | 135 | 35.3% |
| Reading, MA | 26,111 | 161 | 61.5% |
| City | Population | Cost of Living Index | National Avg. |
| Austin, MN | 26,125 | 91 | 8.7% |
| Zanesville, OH | 26,125 | 83 | 16.5% |
| Coral Terrace, FL | 26,129 | 127 | 27.4% |
| Dedham, MA | 26,137 | 152 | 51.6% |
| Watertown, NY | 26,084 | 100 | 0.4% |
| Reading, MA | 26,111 | 161 | 61.5% |
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