Quick Answer
120,000 is a strong salary in Boston, placing you above roughly 81% of earners. After taxes (~25.9% effective rate), your take-home is approximately $7,410/month. A 1-bedroom apartment averages $2,800/month (38% of net income).
If you're earning—or considering—a 120k salary in Boston, you need to understand the full financial picture. Rent, taxes, commuting costs, healthcare, and savings potential all factor into whether this salary delivers the lifestyle you're looking for.
Boston (pop. 4.9 million) is one of the most expensive compared to global metros, with a cost of living index of 92 (NYC = 100). Average 1-bedroom rent is $2,800/month and a monthly transit pass costs $110. It's considered a strong tech market with a tech score of 8/10.
The cost of living in Boston plays a significant role in determining salary adequacy. Housing alone can account for 30-50% of after-tax income in expensive neighborhoods, while more affordable areas might bring that down to 20-25%. Transportation, groceries, and daily expenses also vary considerably from national averages, which directly impacts your purchasing power and how much you can save each month.
When evaluating a 120k salary, it's essential to consider the local job market dynamics. Boston's economy has unique characteristics that influence compensation norms across different industries and experience levels. Some sectors cluster in specific neighborhoods, creating micro-economies where salaries reflect local demand rather than national averages.
Tax considerations in United States also affect your take-home pay significantly. After accounting for income taxes, social contributions, and any local levies, your net income may look quite different from the gross figure. Many professionals are surprised to learn that effective tax rates in United States can range from 20% to over 40% depending on income level and filing status.
Housing market conditions in Boston have a direct bearing on salary adequacy. Whether you rent or buy, the share of income going toward housing is often the single biggest factor in financial comfort. Understanding typical rents for 1-bedroom and 2-bedroom apartments in different neighborhoods helps you build a realistic budget around a 120k salary.
Beyond the monthly budget, long-term financial planning is crucial. At 120k in Boston, you should evaluate your ability to build an emergency fund, contribute to retirement accounts, and potentially invest. The gap between earning well and building wealth often comes down to how much discretionary income remains after essential expenses.
Is 120k a good salary in Boston in 2026?
120k is a very strong salary, placing you in the top 19% of earners in Boston. The local median salary is $78,000, so earning $120,000 puts you at the 81th percentile. After accounting for housing (average $2,800/month for a 1-bedroom), taxes, and daily costs, this salary allows for meaningful monthly savings.
How much tax will I pay on 120k in Boston?
On a gross salary of $120,000 in United States, you can expect an effective tax rate of approximately 25.9%. This means roughly $31,077 per year goes to taxes, leaving you with a net income of about $88,923 per year ($7,410 per month). The exact amount may vary based on deductions, filing status, and local levies.
What is the average rent in Boston in 2026?
As of 2026, the average rent for a 1-bedroom apartment in central Boston is approximately $2,800 per month, while a 2-bedroom averages around $3,800 per month. On a 120k salary, a 1-bedroom rent would consume about 38% of your after-tax income, which is a significant portion of income.
How does 120k in Boston compare to other cities?
Purchasing power varies by city, so 120k in Boston is not equivalent elsewhere. Adjusted for cost of living, the same standard of living would require approximately: New York ($130,800), London ($110,870), San Francisco ($136,957). Boston has a purchasing power index of 98 (NYC = 100), meaning your money goes somewhat less far than in New York.
What is the cost of living in Boston in 2026?
Boston has a cost of living index of 92 (where New York = 100), making it one of the most expensive cities globally. Key monthly costs include: rent ($2,800 for 1BR), groceries (~$428), transport ($110), and utilities (~$138). Total monthly expenses for a single professional average around $3,706 before discretionary spending.
Can I save money on 120k in Boston?
On 120k in Boston, your estimated monthly take-home pay is $7,410 after taxes. With typical expenses of $3,706/month (rent, groceries, transport, utilities, and leisure), you could potentially save around $3,704 per month ($44,448/year). This provides solid room for building an emergency fund and investing.
Last updated: 2026-02-19 | Data sources: Numbeo, OECD, Glassdoor, and local government statistics.
Disclaimer: This page uses market data and cost-of-living sources for guidance. All figures and advice are estimates, not guarantees. Local conditions and personal circumstances may vary.
