Boston is one of the oldest cities in the U.S., dating back to the 1600s and bearing witness to numerous major events in American history. Nowadays, it serves as the capital of Massachusetts and is the most populous city in the state. It’s also known for its world-class universities — including Harvard and MIT — as well as its booming economy and as a hub of scientific research, innovation and entrepreneurship.
During its rich history, the city has witnessed many changes and, in recent years, gentrification has seen the cost of living in Boston increase. In fact, the metro ranks among the most expensive places in the U.S. However, as a global city boasting the 8th-largest economy in the country, a wide range of high-paying job opportunities can be found here in sectors such as tech, research and education.
If you’re planning to move to Boston, it’s important to understand how much things cost in order to create an accurate budget in advance. So, in this guide, we’ll take a look at the costs of everything from housing to taxes to entertainment.
Housing
In recent years, gentrification has pushed house prices up across the city of Boston, as well as the greater metropolitan area. In fact, Boston is one of the most expensive U.S. urban centers for owning property, as well as for renting.
What Is the Average Home Price in Boston?
The price of a single-family home in Boston is around $750,000, while Boston condos are slightly less expensive, with a price tag of $713,000. Surprisingly, detached properties are costlier in the metro Boston region than in the city proper (selling for about $830,000), while condos are more affordable (at $655,000). All in all, these figures are far higher than state averages, which hover around $607,000 and $530,000, respectively.
The average price per square foot is about $1,100 downtown, compared to $600 outside the city center.
Meanwhile, if you’re planning to take out a mortgage to buy property in Boston, expect an interest rate of 5% for a typical 20-year, fixed-rate mortgage. Housing costs are at $1,800 per month in Boston, and this figure incorporates mortgage payments, utilities, home association fees and any other housing-related expenses.
How Much Is the Average Rent in Boston?
Renting an apartment in Boston costs around $3,800 per month. This is based on an average apartment size of about 810 square feet. Of course, prices differ depending on location and actual square footage, although you can expect to pay at least $1,500 each month. Moreover, the vast majority of rentals (97%) cost more than $2,000 per month, while just 3% cost between $1,500 and $2,000.
Specifically, the average rent for a studio apartment in Boston is between $1,000 and $21,400, while a one-bedroom apartment in Boston is between $1,100 and $12,100. You can also find two-bed rentals in Boston ranging from $1,100 to $21,400 per month and three-bed options cost between $1,600 and $21,400.
Different areas in Boston demand different rents, with some of the most affordable neighborhoods including:
- Hyde Park ($2,100 per month)
- Mattapan ($2,200 per month)
- West Roxbury ($2,400 per month)
The most expensive neighborhoods in Boston are the following:
- Chinatown-Leather District ($4,300 per month)
- North End Boston ($4,300 per month)
- Bay Village ($4,300 per month)
How Much Are Utilities in Boston?
In Boston, expect to pay $150 per month on basic utilities, such as heating, water, electricity and garbage disposal for a 480-square-foot studio apartment. For two people in a 900-square-foot flat, the figure rises slightly to $210 per month.
Meanwhile, a monthly internet connection should be around $60 on average, and a basic, prepaid, local mobile tariff will typically cost just $0.23 per minute.
Incomes & Taxes
Jobs across a wide spectrum of industries can be found in Boston, with an increasing number of tech companies setting up shop in the city. Public sector jobs are also common here, particularly in healthcare, government and NGOs.
Known for innovation, Boston is also home to a number of entrepreneurs and boasts many startups and small, independent businesses. Here, the median base pay of $62,000 exceeds the national average of $54,200, while more specialized roles and experienced workers can earn considerably more.
Taxes in Boston are fairly reasonable. And, with flat rates in terms of income, sales and property taxes, they’re easy to calculate as well.
What Is the Average Salary in Boston?
In Boston, workers earn a monthly net salary of about $5,700 after taxes. This is considerably higher than the national figure ($3,700) and helps cover the higher-than-average housing costs. Meanwhile, the household income in Boston hovers around $113,000 per year.
Around 46,000 people have management jobs in Boston, making it the most common occupation in the city. The typical annual salary for these roles is approximately $140,000. Office and administrative support occupations are the second-most common, with a yearly wage of $51,000. A standard tech or IT job will generally pay around $110,000.
How Much Is the Income Tax in Boston?
Income taxes in Boston are easy to calculate since Massachusetts has a flat rate of 5.00%. As such, you pay the same amount of tax no matter how much you earn. However, this can be a disadvantage to lower earners who can find themselves paying more income tax than those who live in states that use a progressive tax system.
Additionally, taxpayers can deduct various costs from their taxable income, including childcare, commuter costs, 50% of rent payments up to $3,000 and college tuition. Personal exemptions can also be claimed to lower income tax payments.
Note that Boston residents are required to take out health insurance coverage, which is paid through their tax return. Failure to do so can result in penalties of around $120 per month.
Here, capital gains are taxed at two different rates. The majority of long-term capital gains are incorporated into your taxable income and taxed at 5.00%, along with the rest of your income. Short-term capital gains realized in less than 12 months are subject to a 12% tax, and long-term capital gains from the sale of collectibles are also taxed at 12%.
What Is the Sales Tax in Boston?
Unlike many states, Massachusetts levies a state-wide sales tax with no local, county or city brackets. Therefore, the state’s sales tax is 6.25% and is applied to most purchasable goods, with some exceptions. Specifically, healthcare products, clothing of up to $175, food from grocery stores, admission tickets, newspapers and professional or personal services are generally exempt from sales tax.
What Is the Property Tax in Boston?
Property tax on residential properties in Boston is calculated at $10.88 per $1,000 of the total assessed value, or an effective tax rate of just over 1%. This is fairly low compared to many other major cities in the U.S., although with high property prices, tax bills typically amount to several thousand dollars. Property taxes are billed quarterly, with the fiscal year starting on July 1 in Boston. There is also a residential exemption for homeowners whose primary residence is in the city.
Transportation
People living and working in Boston have an average commute time of 31 minutes. Dubbed the “Walking City,” Boston is great for pedestrian travel, with more than 33% of commuters walking to work, while around 47% use public transportation provided by the Massachusetts Bay Transportation Authority (MBTA).
What Is the Cost of Owning a Car in Boston?
If you plan to purchase a private vehicle in Boston, expect to pay around $25,000 for a Volkswagen Golf 1.4 90 KW Trendline (or equivalent), or $22,000 for a Toyota Corolla Sedan 1.6l 97kW Comfort (or equivalent). Once you’re up and running, a gallon of gasoline will typically cost $5.
Street parking is available throughout Boston. While you can occasionally find free parking, prices typically range between $10 and $20 per hour. Regarding garages, you can park for free at many MBTA stations as long as you’re a paying customer. Otherwise, expect hourly fees of anywhere between $17 and $40.
What Is the Cost of Public Transportation in Boston?
The MBTA operates the oldest subway system in the nation and remains the fourth-busiest to this day. What’s more, Boston also has bus routes, commuter rail services and water shuttles running throughout the city.
A standard local bus fare costs $1.70 and a one-way subway ticket is $2.40, while commuter rail services cost between $2.40 and $13.25. For regular subway and local bus users, various passes can be purchased to help save a lot of money. A one-day pass costs $11 and offers unlimited travel for 24 hours, whereas a seven-day pass costs $22.50 and a monthly pass is just $90. Monthly passes for all commuter services cost between $90 and $426, depending on the distance you need to travel.
On average, a taxi in Boston will start at $3, plus $3 per mile.
Healthcare & Childcare
Boston is home to several renowned healthcare centers, many of which are associated with local universities, including the prestigious Harvard Medical School. Healthcare costs and medicine are not subject to sales tax, making Boston more affordable in this respect than in much of the country.
Conversely, Boston’s childcare costs are notoriously high, with Massachusetts ranking as the most expensive U.S. state for single parents.
How Much Is a Visit to the Doctor in Boston?
A typical 15-minute visit to the doctor will cost around $180 on average. The dentist is less expensive at $110, while a visit to an optometrist hovers around $100. Medicine costs $12 for a pack of antibiotics (12 doses), while six-days’ worth of cold medicine such as Coldrex or Frenadol is $9 on average.
What Is the Average Cost of Childcare in Boston?
The average cost of infant daycare in Massachusetts is $21,000 — around 23% of a family’s income and 64% more than the average college tuition. It also exceeds monthly rent by 31%. Fees do reduce as children get older; however, do expect to pay more than $15,100 per year, even for a four-year-old. For families with two children (one infant and one four-year-old), costs hover around $36,000.
Fortunately, there are some options to help low-income families afford childcare, such as Child Care Choices of Boston, which provides vouchers and works alongside multiple daycare centers in the city. You can also find several free or low-cost preschools and kindergartens in Boston for families that meet the required criteria.
Finally, the cost of private primary school averages out to $38,000 per year.
Food
Boston has a thriving food scene and is home to many restaurants, cafes, food trucks and independent bakeries. Being on the coast, seafood plays a large role here, with fried clams among the city’s most iconic dishes. Locals frequent numerous secret spots to grab anything from bagels to doughnuts or mouth-watering burgers.
If you prefer to cook at home, you’ll find all the usual grocery stores and supermarkets, as well as several farmers’ markets. Seafood fans will also adore the fish and seafood markets around the harbor.
How Much Is Dining Out in Boston?
You can expect to pay around $90 for a three-course meal for two in a mid-range Boston restaurant, while a typical meal in a neighborhood joint will generally cost about $20.
A combo meal in a fast-food place should be about $10. A regular coffee in a cafe or restaurant will average out at around $5, while a small bottle of water should be approximately $2.
What Is the Cost of Food in Boston, at the Grocery Store?
Grocery prices are rather affordable in Boston, although market prices might be slightly higher than standard grocery stores. In general, expect to pay around $3 for a loaf of fresh white bread, $3 for a dozen eggs, $7 for a pound of chicken fillets and about $4 for a gallon of milk.
A pound of common fruit and vegetables — such as onions, potatoes, apples, bananas and tomatoes — will typically cost between $1 and $3. Finally, a 1.5-liter bottle of water is around $2 on average.
Shopping
Compared to many other major U.S. cities, shopping in Boston is pretty affordable with relatively low sales taxes. This is good news as there are plenty of places to get your shopping fix. In particular, Boston is home to many large malls — both in the city proper and throughout the suburbs — and has a variety of exciting shopping districts dotted throughout town.
For instance, Newbury Street is a top pick for boutiques, and you’ll find a plethora of local goods to peruse here. Faneuil Marketplace is another great choice and home to local arts and crafts, food vendors, clothing stores and budget buys.
What Is the Average Cost of Clothes in Boston?
In Boston, expect to pay about $50 for a new pair of jeans or $40 for a new summer dress. Running shoes and sneakers typically cost around $90, while a pair of leather business shoes should be around $110.
How Much Do Personal Care Products Cost in Boston?
Staying fresh is relatively affordable in Boston. For example, a shampoo bottle and a roll-on deodorant should cost about $5 each. Meanwhile, expect to pay $4 for four toilet paper rolls and $2 for a tube of toothpaste. A trip to the barber shop in Boston will hover around $30 for a standard men’s haircut.
Leisure
Boston is home to various entertainment venues — from historic opera houses and concert halls to modern galleries and museums. There’s plenty to take in outside, as well, with a well-loved park system that includes the oldest public park in the U.S., Boston Common. You can also find trails for walking or cycling, a zoo, freshwater lakes and outdoor concert venues. Sports also play a large role in the city’s culture, with Fenway Park — or “America’s Most Beloved Ballpark” — home to the Boston Red Sox.
What Are Entertainment Costs in Boston?
If you’re looking to catch a play, musical or live music in Boston, expect two tickets to cost $350 for the best seats in the house. Alternatively, two tickets to the movies should cost around $30. Suppose you want to take in some of Boston’s top attractions. In that case, it’s well worth checking out the Museum of Science, Boston, where you can discover more than 700 hands-on exhibits, including the planetarium and the butterfly garden. Tickets cost $29 for adults and $24 for kids.
There are also plenty of free things to do in Boston. One of the best ways to discover the city is to walk the Freedom Trail, a three-mile walk that takes in a wealth of historical sights and neighborhoods. Just follow the red bricks on the sidewalk and you can’t go wrong. Beacon Hill is another historic street that’s worth checking out.
Finally, a walk around Harvard University is a must. You can even enjoy a free tour guided by a current student who will share the university’s history and lifestyle. Harvard Yard is also a great place to relax, while the art museums adjacent to it showcase a veritable treasure trove of paintings, sculptures and crafts. The art museum costs $20 for adults and is free for those under 18 and Harvard students.
How Much Is a Gym Membership in Boston?
On average, expect to pay around $80 per month for a gym membership in Boston. Tennis is another popular pastime, with several courts dotted throughout the city. It generally costs around $40 to rent a court for an hour. Or, if you prefer to exercise for free, there are several free outdoor workouts to enjoy throughout the summer months. These are typically held in public parks and include everything from yoga to circuit training and much more.
Methodology
The information on this page was compiled using data from the following sources:
- Greater Boston Real Estate Board & Massachusetts Association of Realtors for homes prices
- RENTCafé for rent stats
- Point2 Boston Demographics page for housing costs and household incomes
- Numbeo and Expatistan for utility costs, transportation costs, healthcare and childcare spending, food, shopping and leisure expenses, home prices, mortgage interest rates and wages
- Data USA for job and commute information
- The Economic Policy Institute for childcare costs
- NerdWallet for healthcare costs
- Parkopedia for parking costs
- SmartAsset for tax information
- MIT Living Wage Calculator for wage ranges — Glasmeier, Amy K. Living Wage Calculator. 2020. Massachusetts Institute of Technology. livingwage.mit.edu