Massachusetts · Population 34,085 · Updated March 2026
How far your income goes in Lexington
State-level tax rates that affect your costs
Lexington has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 268 (where 100 equals the national median), Lexington residents can expect to pay median rent of $2,816/month while earning a median household income of $219,402/year.
The median home value in Lexington, MA is $1,147,900, with typical monthly owner costs around $3,508 including mortgage, insurance, and taxes. The median rent-to-income ratio of 15.4% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Massachusetts's top income tax rate of 9.0% is among the highest in the nation, adding to the overall cost burden. Combined with a 6.25% sales tax rate and 1.15% effective property tax rate, the overall tax environment is a factor in the total cost of living in Lexington.
Common questions about living costs in Lexington