Massachusetts Cost of Living
Can you afford to live in the Bay State?
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Relocating to Massachusetts means becoming part of a region known for its rich history, vibrant cities and renowned educational institutions. For families and individuals weighing a move, understanding how far your paycheck will go is crucial. High demand for housing, particularly around Boston, drives up prices, and everyday costs are often more than the national average.
To determine the cost of living in Massachusetts, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Massachusetts spend $69,101 each year on goods and services, on average.
Jump to insightThe median rent in Massachusetts is $2,560, versus the national median rent of $1,639.
Jump to insightResidents in Massachusetts spend $271.98 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $3.06 in Massachusetts.
Jump to insightRecent data shows that employees in Massachusetts pay $2,018 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Massachusetts
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Massachusetts was $69,101 in 2023. This amount covers the essentials Massachusetts residents need — including housing, health care, food, energy and other day-to-day purchases.
Here’s a breakdown of the largest spending categories in Massachusetts:
| Category | Annual per-capita cost in Massachusetts |
|---|---|
| Housing and utilities | $12,470 |
| Health care | $11,354 |
| Food and beverages for off-premises consumption | $4,870 |
| Gasoline and other energy goods | $1,019 |
| All other personal consumption expenditures | $39,388 |
| Total cost | $69,101 |
Housing costs in Massachusetts
Housing is often the single largest expense for Massachusetts families. Based on 2025 Apartments.com data, the average rent in Massachusetts is $2,560, which is significantly higher than the national average rent of $1,639. Where you choose to live and your home’s size will affect your monthly payment. The U.S. Census Bureau’s 2023 American Community Survey details average monthly rents in Massachusetts:
- One-bedroom rent: $1,459
- Two-bedroom rent: $1,882
- Three-bedroom rent: $1,935
- Four-bedroom rent: $2,308
For those considering homeownership, the median home price in Massachusetts is $692,000, which is much higher than the U.S. median of $446,638.
Property taxes are another important factor. Massachusetts has some of the highest effective tax rates in the nation (ranking number 18), with an average rate of 0.97%.
» COMPARE: Best moving companies in Massachusetts
Food costs in Massachusetts
Grocery shopping in Massachusetts averages $271.98 per week, according to the latest U.S. Census data, compared with the national average of $270.21.
Your food expenses can change depending on your shopping habits and how often you dine out. Urban areas — especially Boston — tend to have higher prices for groceries and restaurants, while smaller towns may offer more reasonable options.
Families who cook at home and seek out local markets or bulk discounts may be able to keep their food costs in check, but regularly eating out in the city will push the budget higher.
Transportation costs in Massachusetts
The average price for a gallon of regular gasoline in Massachusetts is $3.06, compared with the U.S. average of $3.13.
Auto insurance premiums — which include liability, collision and comprehensive coverage — average $1,251.16 in Massachusetts, while the national average is $1,258.
Health care costs in Massachusetts
Employees in Massachusetts with employer-sponsored health insurance pay an average of $2,018 per year out of pocket, while employers cover the remaining $7,494 of the $9,513 total premium.
Nationally, employees paid $1,640 out of a total premium of $8,182.
Utility costs in Massachusetts
The typical monthly electric bill in Massachusetts is $165.55, compared with $136.84 across the U.S.
For heating and cooking, natural gas in Massachusetts costs $25.90 per thousand cubic feet. The U.S. average is $12.92.
FAQ
Does Massachusetts have a high cost of living?
Yes, Massachusetts has a higher cost of living than the national average. Housing and utilities are noticeably more expensive than in most other states, and health care costs are much higher as well. However, residents benefit from some of the lowest gas prices in the nation, which can help offset transportation expenses.
Is Massachusetts a good place to live?
Yes, Massachusetts is a good place to live if you value access to exceptional schools, historic cities and a variety of career opportunities. While not many people have been moving to Massachusetts in recent years, the state’s strong economy and vibrant communities are significant draws for many families and professionals.
» RELATED: Best moving companies
Is Massachusetts good for renters?
No, Massachusetts is not good for renters. While tenant protections are stronger than in many places, the high cost and scarcity of rental housing can make it difficult for renters to find a suitable home.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
