Average salary in Boston: The complete guide (2024)

Find out the average salaries in Boston, the median and average household incomes in Boston, and the highest-paying jobs in Massachusetts.

Ivandzhelin

4 minute read
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19 Jun 2024
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Are you considering moving to Boston to pursue the career of your dreams? With an average salary of $8,909 monthly and a median income of $6,481, working in Boston is a good choice. Yet, before you start packing it’s good to learn more about the average income in Boston, how it compares to the cost of living, and what factors influence your salary in Boston.

In this article we will break down the average salary in Boston by age, location, field and gender. We will tell you all about the median and average household income in Boston, and what’s a good salary.

Average salary in Boston

The average monthly salary in Boston is $8,909 gross, or $106,906 annually. After taxes, the average annual salary in Boston is $77,928 (or $6,494 monthly). The amount drops significantly as Boston residents have to pay income taxes at the federal and state levels.

The Boston area's average salary is higher than Massachusetts’ state average of $101,187. This is an interesting number for people who move to Boston, as the state of Massachusetts has the highest average salaries in the US.

Average household income in Boston

With a 10.15% increase year on year, the average household income in Boston is $133,207. The median household income in Boston is $86,331. Comparatively, Boston has a lower median household income than the state of Massachusetts, which is $94,488.

This figure is particularly interesting for households with share costs. It provides insight into the average income earned by all household members. This typically includes three members in Boston, three of whom are earners.

Median salary in Boston

The median salary in Boston is $77,771 annually (or $6,481 monthly). Median salaries represent the exact medium of earnings in Boston, where half of the participants earn more and half earn less than the median. As the highest and lowest earners don’t offset median salaries, they show a more accurate representation of the earnings and income distribution in Boston.

What is a good salary in Boston?

Generally, a good annual salary in Boston is between $80,000 and $100,000 (or between $6,666 and $8,333 monthly) for a single person. With an average monthly cost of living in Boston of $3,997, earning such a salary is good as you’ll be able to cover your basic costs and have some savings.

The amount varies depending on the size of your household. Earning between $75,000 and $80,000 annually is good if you live with roommates. But if you want to live independently, you need at least $100,000 annually to be comfortable. Families with children need between $200,000 and $250,000 in household income to support themselves.

Factors influencing your average salary in Boston

1. Field of work

The main factor influencing your salary in Boston is the field you’re working in. Generally, positions in demand or requiring professional training have higher salaries. In Boston and in the state of Massachusetts, the highest-paying jobs are in the fields of medicine, law, finance, architecture and engineering, marketing, and computer science.

According to the US Bureau of Labor Statistics, some of the best-paying jobs in Massachusetts are:

  • Dermatologists: $414,270
  • Cardiologists: $362,510
  • Lawyers: $196,230
  • Nurse anesthetists: $204,690
  • Financial managers: $177,990
  • Computer and information systems managers: $176,820
  • Architectural and engineering managers: $173,740
  • Marketing managers: $165,380
  • Sales managers: $158,850
  • Economics teachers: $152,400

2. Age and experience level

Age and level of experience influence your earnings significantly. Based on household income data, residents aged 25-44 have a median income of $108,259 annually, and those between 45-64 earn $86,012. With an annual householder income of $38,912 and $49,092, people younger than 25 and older than 65 earn significantly less.

When it comes to experience, the higher your position is, the more you earn. Mid-level positions have higher average wages than entry-level jobs but lower salaries than senior-level positions. Your salary grows depending on any additional skills your work might require, e.g., specific machinery skills for mechanical engineers.

3. Location

Location also affects how much you earn and your household's income. Boston’s central and waterfront areas have a higher median income than the city’s suburbs. According to the most recent American Community Survey, these are Boston’s neighborhoods ranked by household income:

  • Back Bay, Beacon Hill, Charlestown, East Boston, Central and South End: $141,185
  • Hyde Park, Jamaica Plain, Roslindale, West Roxbury: $130,104
  • Dorchester and South Boston: $122,891
  • Allston, Brighton and Fenway: $87,504
  • Mattapan and Roxbury: $64,848

4. Income taxes in Boston

As part of Massachusetts, Boston residents pay a progressive income tax on the state and federal levels. The marginal federal state tax rate is 24%, and the tax rate of the state of Massachusetts is 5%. As the rate is progressive, the rate you’re taxed is determined by how much you earn.

So, if your annual income is $84,861, you’re taxed 18.22% income tax, resulting in net annual earnings of $69,401.

Additionally, Boston residents can choose to pay their contribution to the Federal Insurance Contribution Act (FICA), which covers social security contributions and Medicare. That is taxed at a flat rate of 7.65% per earner in a household.

With FICA, your annual income drops to $63,636 as you pay $6,492 in social security contributions. If you plan on contributing to FICA, you can use SmartAssets’ tax calculator to see how that affects your income.

5. Gender

While decreasing, a gender pay gap of $0.21 in earnings between men and women continues to exist. This means that women in Boston make $0.79 for every $1 men make. Translated into annual salaries, men made $114,368, whereas women earned only $90,302 on average.

Everyone considering a career in Boston needs to be aware of the financial landscape in the city. This way, you can make a sound decision when the time comes to accept the job offer. Now that you know how much you need to earn for a good salary in Boston, you're ready to search for homes for rent in Boston that will fit into your budget.

This article is for informational purposes only.

Please reach out to content@housinganywhere.com if you have any suggestions or questions about the content on this page.

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