What it costs to live and work in Massachusetts: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.
| Massachusetts | Source | |
|---|---|---|
| Minimum wage | $15.00 an hour | US Department of Labor, State Minimum Wage Laws (updated July 1, 2026) |
| State income tax | 5 % to 9 % | Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 |
| State sales tax | 6.25 % | Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026) |
| Median gross rent | $1,848 a month (2024) | US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent |
Massachusetts' minimum wage is $15.00 an hour.
Massachusetts taxes income at 5 %, plus a 4 % surtax on income above $1,083,150 (9 % in total).
The state sales tax is 6.25 %, with no local sales taxes.
What income does rent in Massachusetts take?
A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,848 a month, that means a household income of about $73,900 a year before tax.
Good to know
- The 9 % rate is 5 % plus a 4 % surtax that applies only to income above $1,083,150.
Sources
- US Department of Labor, State Minimum Wage Laws (updated July 1, 2026) (2026-07-01)
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (2026-02-19)
- Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026) (2026-07-06)
- US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent (2025-09)