The Reality of Six-Figure Salaries in Massachusetts
Earning a six-figure salary has long been associated with financial success. However, in Massachusetts, particularly in the Greater Boston area, this perception is increasingly detached from reality. A recent analysis indicates that to be considered upper class in Massachusetts, a household needs to earn approximately $180,000 to $190,000 annually, one of the highest thresholds in the nation.
This elevated income requirement is largely due to Massachusetts’ high cost of living. Housing costs are a significant contributor, with the average home price around $400,000—nearly twice the national average. Renters face similar challenges; for instance, the average monthly rent for a one-bedroom apartment in Boston is approximately $3,040.
Beyond housing, Massachusetts residents encounter additional financial burdens. The state imposes an estate tax on estates valued over $2 million, with rates reaching up to 16%. Additionally, the recently implemented Millionaire’s Tax adds a 4% surtax on annual taxable income exceeding $1 million, impacting high earners and their estate planning strategies.
These financial pressures mean that even households earning $200,000 annually may find themselves merely maintaining a middle-class lifestyle. In fact, Massachusetts has the highest income threshold in the country for rising above the middle-class bracket, underscoring the state’s challenging economic landscape.
In summary, while a six-figure salary might suggest affluence elsewhere, in Massachusetts, it’s often just enough to get by. The state’s high cost of living and substantial tax obligations necessitate careful financial planning to achieve and maintain economic stability.
For a more detailed overview, check out the full article here:
đź”— People making six-figure salaries used to be considered rich—now they feel broke
Want to learn how to protect your assets and avoid unnecessary estate taxes? Join us for one of our free Estate Planning Essentials seminars, where we break down what every Massachusetts family needs to know.
Spots are limited! Click here to reserve your seat today and take the first step toward securing your financial future.
