Massachusetts Mortgage Calculator

Mortgage Calculator in Massachusetts

The median home price in Massachusetts is $600,000, which is 43% above the national average of $420,000. Massachusetts's effective property tax rate of 1.15% is 0.05 percentage points higher than the national average of 1.1%.

Metric	Massachusetts (MA)	National Avg	vs National Average
Median Home Price	$600,000	$420,000	+43%
Property Tax Rate	1.15%	1.1%	+0.05%
Home Insurance (Annual)	$2,200	$2,300	-4%
State Sales Tax	6.25%	5%	+1.3%
FHA Loan Limit	$766,550	$472,030	Higher
Conforming Loan Limit	$766,550	$766,550	Standard

Homeownership in Massachusetts

Massachusetts has a median home price around $600,000 with Greater Boston neighborhoods averaging well above $700,000 -- making it one of the most expensive non-coastal-CA housing markets in the country. Despite a relatively high income tax of 9% on incomes above $1 million (the 'Millionaires Tax' passed in 2022), the state's educated workforce, strong university ecosystem, and life sciences economy maintain high demand. Property taxes are moderate at 1.15%, somewhat offset by the Chapter 59 assessment process.

Tips for Massachusetts Homebuyers and Homeowners

• Massachusetts communities set their own residential tax rates and many offer residential tax exemptions that reduce the assessed value for owner-occupants -- confirm with your town assessor whether an exemption applies.
• Boston has a residential exemption program that reduces assessed value by roughly $204,000 for owner-occupied homes -- worth over $2,000 per year in tax savings for eligible properties.
• Massachusetts has a 5% capital gains tax on short-term gains, which can affect house-flippers and investors; primary residence sales are sheltered by the federal $250,000/$500,000 exclusion.
• The Massachusetts income surtax of 4% applies to income above $1 million (cumulative across wages, capital gains, and other income) -- high earners should model this carefully before buying an expensive home.

Massachusetts Programs and Assistance

• MassHousing Mortgage -- competitive fixed-rate loans with down payment assistance, including MassHousing's Operation Welcome Home program for veterans and active duty service members.
• MassDREAMS Grant -- provides up to $50,000 in grant funding (not a loan -- free money) for first-generation homebuyers in Massachusetts disproportionately impacted by the pandemic.
• ONE Mortgage Program (Mass Housing Partnership) -- a true 3% down first mortgage with no private mortgage insurance, available to moderate-income first-time buyers.

Did you know? Massachusetts' ONE Mortgage program has been praised nationally as a model -- it charges no PMI and requires only 3% down from first-time buyers, saving borrowers $200-$400 per month versus conventional loans with PMI.