The cost of living in Massachusetts is the second highest in the United States. The state scored 148.5 on the 2025 national cost-of-living index, which means everyday life here costs about 48.5% more than the U.S. average. Only Hawaii is more expensive. Housing is the main reason: the Massachusetts housing index sits at 221, more than double the national average.
But that headline number hides a big difference between towns. Living in downtown Boston is very different from living in Salem, Beverly, Swampscott or Peabody on the North Shore. The same paycheck can buy a very different home depending on which side of the Mystic River you choose.
This guide breaks down the real 2026 numbers: home prices, rent, taxes, utilities, groceries, transportation and child care. It compares Boston with the North Shore and shows sample monthly budgets. It is written by The Proper Nest, a North Shore real estate team based in Marblehead. We help buyers, sellers and renters across Boston and the North Shore every week, and we see these costs up close in every deal we work on.
What Is the Average Cost of Living in Massachusetts?
The average cost of living in Massachusetts for one adult with no children is about $60,000 to $70,000 a year before taxes, depending on the county. That is the "living wage", the income a person needs to cover basic needs without help.
According to the MIT Living Wage Calculator (updated February 2026), a single adult needs:
$30.58 per hour statewide
$29.10 per hour in Essex County (the North Shore), or about $60,518 a year
$33.60 per hour in Suffolk County (Boston), or about $69,891 a year
For a family of four with two working parents and two children, the numbers jump:
Essex County: about $162,446 a year before taxes (each parent earning about $39 per hour)
Suffolk County (Boston): about $184,368 a year before taxes (each parent earning about $44 per hour)
That is a gap of almost $22,000 a year for the same family, just by living on the North Shore instead of in Boston. For many of the families we work with, that difference is exactly what makes buying a home possible.
Housing Costs: The Biggest Part of the Massachusetts Cost of Living
Housing is where Massachusetts really stands out. It is the largest single expense for almost every household, and it is the area where your choice of town matters most.
Home prices across Massachusetts
The statewide median single-family home price was $638,000 in 2025. In 2026, prices have stayed steady, reaching about $665,000 in May. The market is calmer than it was a few years ago, but low inventory still keeps prices firm, especially for well-kept homes in good school districts.
What a mortgage really costs
Let's use Salem as an example. On a 690,000homewith20%down(138,000), the loan would be $552,000. At a 6.5% interest rate, the monthly principal and interest payment is about $3,489. At 6.0%, it is about $3,310.
On top of that, you will pay property taxes, homeowners insurance and, for some homes, flood insurance or condo fees. Together these can add several hundred to over a thousand dollars a month, depending on the town and the property.
Before you start looking, run your own numbers with our mortgage calculator and affordability calculator. Then talk to one of our agents. We can show you exactly what your budget buys in each North Shore town.
Property taxes
Massachusetts has no county property tax. Each city or town sets its own residential tax rate every year, per $1,000 of assessed value. Rates and bills vary a lot from town to town, so a lower home price does not always mean a lower yearly cost.
Before you make an offer, always check the current tax rate and the last tax bill for that exact home. Our agents pull this for every home our clients consider, so there are no surprises after closing.
Salem, Massachusetts Cost of Living
The Salem, Massachusetts cost of living is lower than Boston's but still above the national average. Salem gives you city life, a walkable downtown, restaurants, the waterfront and a commuter rail station, at a much lower price than Boston.
Here is what living in Salem costs in 2026:
Median single-family home: about $690,000 (2026 year-to-date)
Typical 1-bedroom rent: about $2,160 per month
Typical 2-bedroom rent: about $2,560 per month
Living wage for one adult (Essex County): about $60,500 a year
Salem has a wide mix of homes. You will find condos in converted historic buildings downtown, single-family homes in North Salem and near Salem Willows, and two- and three-family homes that let owners rent out a unit to help pay the mortgage. For first-time buyers, a multi-family home in Salem can be one of the best ways to lower the cost of living.
Salem is also only about 30 minutes from Boston by commuter rail, which helps many residents avoid the cost of a second car or daily parking in the city.
Cost of Living in Boston, Massachusetts
The cost of living in Boston, Massachusetts is among the highest of any U.S. city. Boston has world-class hospitals, universities and jobs, and many people are happy to pay for that access. But it is important to see the full picture before you move.
Living wage for one adult: $33.60 per hour, or about $69,900 a year (Suffolk County)
Living wage for a family of four (two working parents): about $184,400 a year
2-bedroom rent in Back Bay / South End: about $4,170 per month
Child care for a family of four: about $50,400 a year in Suffolk County
Boston is a great place to live, but many people find that moving 15 to 25 miles north gives them more space, a yard, quieter streets and a lower monthly cost, while still letting them work in the city. That is why so many of our clients come to us from Boston, Cambridge and Somerville.
Taxes in Massachusetts
Taxes are an important part of the Massachusetts cost of living. Here is what you need to know in 2026:
State income tax: a flat 5% on most income, including wages, interest and dividends.
Millionaire's surtax: an extra 4% on income above $1,107,750 for tax year 2026. Most households are not affected.
Sales tax: 6.25% statewide. Most groceries and most clothing items up to $175 are not taxed.
Meals tax: 6.25% state tax on restaurant meals, and some cities and towns add a small local tax.
Property tax: set by each town every year (see the property tax section above).
Compared with many states, Massachusetts has a simple, flat income tax. The bigger tax cost for homeowners is usually property tax, which is why choosing the right town matters so much.
Utilities: Electricity, Heating and Internet
Utilities in Massachusetts cost more than in most of the country. The average electricity rate is about 36 cents per kWh as of October 2026, roughly 72% higher than the national average. A typical household using about 1,000 kWh a month can spend around $374 a month on electricity alone.
Heating is the other big utility cost. Winters on the North Shore are cold, and older homes can use a lot of oil or gas. Here are a few ways to keep utility costs down:
Ask for the last 12 months of utility bills before you buy a home. Our agents request these for our clients as part of every purchase.
Look at the heating system. A newer gas furnace or heat pump can cost much less to run than an old oil boiler.
Check insulation and windows. Older homes often need upgrades, and state programs can help pay for energy audits and insulation.
Compare electricity suppliers. Many towns offer community electricity programs that can lower your supply rate.
Groceries, Health Care and Everyday Costs
Everyday costs in Massachusetts are higher than average, but not as high as housing.
According to the MIT Living Wage Calculator, a single adult in Massachusetts spends about:
Food: $4,944 a year (about $412 a month)
Medical care: $4,097 a year (about $341 a month)
Other needs (clothing, personal care, phone and more): $4,715 a year (about $393 a month)
For a family of four, food costs rise to about $14,469 a year and medical costs to about $12,039 a year.
Health insurance premiums in Massachusetts have also been rising fast. A 2025 business report found premiums rose nearly 20% in recent years. If you are moving for a job, ask your employer about health coverage early, because it can change your monthly budget a lot.
Transportation Costs
Transportation is the third biggest cost for most households. MIT estimates a single adult in Massachusetts spends about $8,178 a year on transportation, and a family of four with two working parents spends about $13,717 a year.
The average commute in Massachusetts is 29.9 minutes, the longest in New England. Where you live has a big effect on both time and money:
Boston: you may not need a car, but parking can cost hundreds of dollars a month.
North Shore: towns like Salem, Beverly, Swampscott and Lynn have commuter rail stations, so many residents ride the train to Boston instead of driving.
Marblehead, Peabody and Danvers: most households rely on a car, but driving to Route 128, Route 1 and I-95 is easy.
When our clients compare homes, we always look at the commute together. A home that is a little more expensive but close to a train station can save you money every month.
Child Care: The Hidden Cost for Families
Child care is one of the biggest surprises for families moving to Massachusetts. The state has the highest median infant child care cost in the country, over $23,000 a year.
For a family with two young children, MIT estimates child care costs of:
$41,712 a year statewide
$42,930 a year in Essex County
$50,372 a year in Suffolk County (Boston)
This is one more reason families choose the North Shore. Lower housing costs and slightly lower child care costs can add up to thousands of dollars of savings every year, plus access to highly rated public schools in many towns.
Why the North Shore Gives You More for Your Money?
When we compare costs for our clients, the North Shore often wins for people who want space, good schools and access to Boston without paying Boston prices. Here is why:
Lower home prices. Many North Shore towns have median prices well below Boston's inner neighborhoods.
Lower rents. A two-bedroom in Salem or Beverly can cost $1,500 or more less per month than in central Boston.
Lower living wage. A family of four needs about $22,000 less per year in Essex County than in Suffolk County.
Easy commute. Commuter rail stations in Salem, Beverly, Swampscott and Lynn connect directly to Boston's North Station.
Coastal lifestyle. Beaches, harbors, parks and historic downtowns are part of everyday life.
Every town has its own feel and price range. Salem offers city energy and multi-family options. Beverly has a mix of downtown condos, family neighborhoods and oceanfront homes. Swampscott and Marblehead offer seaside living with strong schools. Peabody, Danvers and Lynn offer more home for the money. Explore each town on our Communities page.
How The Proper Nest Helps You Lower Your Cost of Living?
The Proper Nest is a local real estate team based in Marblehead, serving buyers, sellers and renters across Boston and the North Shore. We know these towns street by street, and we use that knowledge to help you get the most home for your money.
For buyers, we:
Show you exactly what your budget buys in each North Shore town
Set up instant listing alerts so you see new homes first
Pull tax bills, utility history and flood zone details on every home you consider
Help you write a strong offer that wins without overpaying
For sellers, we:
Give you a free, accurate home value based on local sales
Price, market and photograph your home to attract strong offers
Guide you from listing to closing
For renters, we:
Help you find the right apartment or home on the North Shore
Help you plan your move from renting to owning
Start with our Buying, Selling or Renting pages, or check what your home is worth with our home sale calculator.
Ready to Find a Home That Fits Your Budget?
The cost of living in Massachusetts is high, but the right home in the right town can make it work for you. Whether you want to buy your first home, move up to a bigger house, sell, or find a rental, The Proper Nest is here to help.
Contact The Proper Nest today to talk with a local North Shore agent, browse current listings, and find out exactly what your budget can buy.
Frequently Asked Questions
What is the cost of living in Massachusetts in 2026?
Massachusetts has the second highest cost of living in the U.S., about 48.5% above the national average. A single adult needs about $60,000 to $70,000 a year before taxes, and a family of four with two working parents needs about $162,000 to $184,000, depending on the county.
What is the average cost of living in Massachusetts per month?
A single adult renting on the North Shore can expect to spend about $4,000 to $4,500 a month on basic needs. A family of four that owns a home and pays for child care can spend $12,000 to $14,000 a month or more.
Is Salem, Massachusetts expensive to live in?
Salem is more expensive than the national average but much more affordable than Boston. The 2026 median single-family price is about $690,000, and a typical one-bedroom rents for about $2,160 a month, compared with about $3,510 in Boston's Back Bay.
How much do you need to live comfortably in Boston, Massachusetts?
A single adult in Boston needs about $69,900 a year before taxes just to cover basic needs. To live comfortably, with savings and some extras, most people need much more. A family of four needs about $184,000 a year for basic needs.
Why is Massachusetts so expensive?
The main reason is housing. The state's housing costs are more than twice the national average because there are not enough homes for sale and demand from strong job markets is high. Electricity, child care and health care costs are also higher than average.
Where is the most affordable place to live near Boston?
Many North Shore towns, such as Lynn, Peabody and Salem, offer lower home prices and rents than Boston while still giving you an easy commute. The Proper Nest can help you compare towns based on your budget and lifestyle.
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