Watertown, MA

Very High · 191

Massachusetts · Population 35,270 · Updated March 2026

$2,357
Median Rent / Month
$123,422
Median Income
$737,600
Median Home Value
$2,420
Owner Costs / Month

Affordability

How far your income goes in Watertown

22.9%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

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

$28,284
Annual Rent
$11,108
State Income Tax
$8,482
Property Tax (est.)

Cost of Living Overview

Watertown has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 191 (where 100 equals the national median), Watertown residents can expect to pay median rent of $2,357/month while earning a median household income of $123,422/year.

The median home value in Watertown, MA is $737,600, with typical monthly owner costs around $2,420 including mortgage, insurance, and taxes. The median rent-to-income ratio of 22.9% 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 Watertown.

Frequently Asked Questions

Common questions about living costs in Watertown

What is the cost of living in Watertown, MA?
The cost of living index in Watertown, MA is 191 (US average = 100). Median monthly rent is $2,357, median household income is $123,422/year, and the median home value is $737,600.
Is Watertown, MA affordable?
No, Watertown is more expensive than the national average with a cost index of 191. The rent-to-income ratio is 22.9%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Watertown, MA?
The median gross rent in Watertown, MA is $2,357 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $28,284.
What is the median household income in Watertown?
The median household income in Watertown, MA is $123,422 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%.