Is $150,000 a Good Salary in Boston?

Assessing a $150,000 salary in Boston involves navigating a complex landscape of expenses and income. This figure, while substantial in many areas, must be viewed through the lens of one of the nation’s most expensive urban environments. Understanding what this salary affords requires examining the city’s high cost of living and the impact of tax deductions on take-home pay.

Boston’s Major Living Expenses

Housing is the most significant expense in Boston, with rental costs demanding a substantial portion of income. A one-bedroom apartment in the city center can range from $2,900 to $3,600 per month, while properties outside the immediate city may offer rates around $2,100. For homeownership, the median home sale price in Boston reached $846,179 in 2025, reflecting a competitive real estate market.

Transportation costs also present a considerable financial outlay, whether relying on public transit or personal vehicles. A monthly pass for the Massachusetts Bay Transportation Authority (MBTA), often referred to as “the T,” costs around $90. Owning a car incurs additional expenses such as gas, averaging about $4.00 per gallon, and monthly parking fees from $200 to $500 depending on location.

Food expenses contribute significantly to the monthly budget, with Boston’s grocery costs being higher than the national average. A single person might spend between $300 and $600 monthly on groceries. Dining out, a common activity in the city, can quickly escalate costs, with a single meal at a mid-range restaurant typically falling between $20 and $35 per person.

Utilities add another layer of expense. Basic utilities, encompassing electricity, heating, cooling, water, and garbage services, can average $230 to $265 monthly. Internet service adds another $60 to $100. Health insurance premiums for an individual, if not fully covered by an employer, can range from $400 to $480 per month.

Understanding Your Take-Home Pay

A gross annual salary of $150,000 is subject to several mandatory deductions before it becomes take-home pay. For a single filer in 2024, after accounting for the standard deduction of $14,600, federal income tax would be approximately $25,538.

Massachusetts levies a flat income tax rate of 5.0% on earned income for tax year 2024. For a $150,000 salary, this translates to an approximate state tax liability of $7,100.

Federal Insurance Contributions Act (FICA) taxes, which fund Social Security and Medicare, also reduce gross pay. In 2024, Social Security tax is 6.2% on earnings up to $168,600, resulting in $9,300 for a $150,000 salary. Medicare tax is 1.45% on all earnings, amounting to $2,175 for the same salary.

After federal income tax, state income tax, and FICA taxes, the estimated annual net income would be around $105,887. This translates to roughly $8,824 per month available for living expenses and discretionary spending.

Financial Comfort and Lifestyle Considerations

With an estimated monthly take-home pay of approximately $8,824, a $150,000 salary in Boston offers a certain level of financial comfort, though it requires careful budgeting. Living alone in a central neighborhood, given the high rental costs, would consume a substantial part of this income. Opting for a smaller apartment or choosing to live with roommates could provide more financial flexibility.

Discretionary spending on entertainment, dining out, and leisure activities would need to be managed consciously. While Boston offers abundant cultural and social opportunities, frequent participation in higher-cost activities could quickly strain the budget after essential expenses are covered.

Achieving significant savings goals, such as accumulating a down payment for a home or aggressively contributing to retirement accounts, can be challenging. The high cost of living means that a larger percentage of income is dedicated to necessities, limiting the surplus available for long-term financial objectives. Consistent saving would likely require a disciplined approach to discretionary spending.

Whether a $150,000 salary is deemed “good” in Boston depends on individual lifestyle choices and financial priorities. While it allows for a comfortable existence, particularly for a single person, it may not afford the luxurious lifestyle that the same salary might in a less expensive city. A 2024 SmartAsset study indicated that a single adult needs about $124,966 annually to live in “sustainable comfort” in Boston, suggesting that $150,000 puts one above this threshold.

$150k in Context: Local Income Comparisons

The median household income in Boston was $94,755 in 2023, indicating that a $150,000 salary is significantly higher than what a typical household earns. For the wider Boston metropolitan area, average household expenditures were reported at $101,247 per year in 2022–23.

The median individual income in Boston was $48,176 in 2023, while the average individual gross salary was approximately $106,906 annually. A $150,000 salary therefore places an individual well above both the median and average individual earnings in the city. This suggests a higher earning potential compared to a substantial portion of the local workforce.

While a $150,000 salary is considerably above the average for Boston, it is important to recognize that what constitutes a high salary can vary by specific industry or profession within the city. Earning $150,000 positions an individual in a strong financial standing relative to the general population in this expensive urban market.