The Cambridge, MA Salary Guide: What $100,000 Actually Buys You

You cleared the six-figure hurdle. In most of America, that’s a ticket to the middle class. In Cambridge, Massachusetts? It’s the price of entry just to stay in the game. This guide breaks down the raw math of living in one of the most expensive tech and education hubs on the planet.

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The Verification Test ($100,000 Analysis)

Let’s kill the fantasy. When you sign an offer letter for $100,000, you are not pocketing $100,000. You are fighting a war of attrition against the IRS and the Commonwealth of Massachusetts.

The Sticker Price vs. Reality:

• Gross Salary: $100,000
• Total Deductions: $26,264
• Net Take Home: $73,736

The Breakdown:
The government takes a massive bite before your money ever hits your bank account.

1. Federal Tax ($13,614): The unavoidable federal levy.
2. FICA Tax ($7,650): That’s 7.65% of your gross going straight to Social Security and Medicare.
3. Massachusetts State Tax ($5,000): A flat 5% income tax. It’s efficient, but it hurts.

The Bottom Line:
You lose over 26% of your income to taxes immediately. Your "real" salary isn't $100k; it's $73,736. If you don't do this mental math first, you will feel poor in Cambridge.

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Smart Budget Breakdown (50/30/20 Rule)

With a monthly net of $6,145, you have to be disciplined. The 50/30/20 rule is the only way to survive without drowning in debt.

Needs ($3,072/mo)

This bucket covers the essentials: rent, utilities, groceries, and insurance.

• Can you afford rent? Yes, but with caveats.
• The Reality: The median rent for a one-bedroom in Cambridge often hovers between $2,600 and $3,200. You can fit a $2,800 rent into this category, leaving you only $272 for utilities, internet, and food. That is razor-thin.
• Purchasing Power: At this budget, you are priced out of homeownership. A median condo here costs roughly $700k+, requiring a monthly mortgage payment that is double your "Needs" budget.

Wants ($1,843/mo)

This is your lifestyle money. Dining out in Harvard Square, Celtics tickets, and drinks near Central Square.

• Cambridge is a foodie and drinker's paradise. $1,843 is a healthy "fun" budget, but it vanishes quickly if you treat this city like a playground. One nice dinner and a few drinks can easily burn $150.

Savings ($1,229/mo)

• Wealth Creation: This is the most critical number. $1,229/month is roughly $14,748 per year.
• The Verdict: This is enough to max out a Roth IRA ($7,000 limit) and contribute to a 401(k). However, it is not enough to aggressively save for a down payment on a Cambridge property while simultaneously investing for retirement. You have to pick one financial lane.

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Cambridge Taxes vs. The Competition

Is the tax burden worth the payoff? Let’s look at the landscape.

• Vs. New York City: NYC bleeds you dry. You’d pay roughly 4% city tax plus higher state taxes on top of federal/FICA. Cambridge is a tax haven compared to NYC.
• Vs. Austin, Texas: Austin has 0% state income tax. On a $100k salary, that’s a $5,000 difference in your pocket immediately. However, property taxes in Texas are punitive. Massachusetts has lower property taxes relative to home values, but the income tax is the trade-off.

The Strategy: If you hate state income tax, Massachusetts isn't for you. But if you want world-class healthcare systems and infrastructure funded by those tax dollars, the 5% is the cost of doing business.

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Frequently Asked Questions (FAQ)

What is the income tax rate in Cambridge?

Cambridge residents pay a flat 5% state income tax to Massachusetts. There is no additional local income tax.

Is $100k a good salary in Cambridge?

It is a survivable salary, but not a wealthy one. You will live comfortably but not lavishly. To feel "rich" in Cambridge (i.e., buying a home, driving a new car, and saving aggressively), you generally need a household income closer to $200,000+.

Does Cambridge have a local city tax?

No. As of the current tax year, Cambridge does not levy a local income tax on residents. You only pay the standard Massachusetts state rate.

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Disclaimer: This analysis utilizes 2026 IRS tax brackets and projections, Bureau of Labor Statistics (BLS) data for the Boston-Cambridge-Newton metropolitan area, and Massachusetts State Comptroller records. Tax situations vary by individual deductions and dependents.