Salem, MA

Very High · 140

Massachusetts · Population 44,241 · Updated March 2026

$1,800
Median Rent / Month
$85,137
Median Income
$497,400
Median Home Value
$1,949
Owner Costs / Month

Affordability

How far your income goes in Salem

25.4%
Rent-to-Income Ratio
Moderate
Rent takes 25-35% of median income — moderate affordability.

Tax Burden in Massachusetts

State-level tax rates that affect your costs

9.0%
Income Tax (Top Rate)
6.25%
Sales Tax
1.15%
Property Tax Rate

Estimated Annual Costs

$21,600
Annual Rent
$7,662
State Income Tax
$5,720
Property Tax (est.)

Cost of Living Overview

Salem has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 140 (where 100 equals the national median), Salem residents can expect to pay median rent of $1,800/month while earning a median household income of $85,137/year.

The median home value in Salem, MA is $497,400, with typical monthly owner costs around $1,949 including mortgage, insurance, and taxes. With a rent-to-income ratio of 25.4%, Salem falls within the generally affordable range, though it's approaching the 30% burden threshold.

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 Salem.

Frequently Asked Questions

Common questions about living costs in Salem

What is the cost of living in Salem, MA?
The cost of living index in Salem, MA is 140 (US average = 100). Median monthly rent is $1,800, median household income is $85,137/year, and the median home value is $497,400.
Is Salem, MA affordable?
No, Salem is more expensive than the national average with a cost index of 140. The rent-to-income ratio is 25.4%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Salem, MA?
The median gross rent in Salem, MA is $1,800 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $21,600.
What is the median household income in Salem?
The median household income in Salem, MA is $85,137 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Massachusetts?
Massachusetts has a top income tax rate of 9.0%, a sales tax of 6.25%, and an effective property tax rate of 1.15%.