Massachusetts, known for its rich history, top-tier education, and thriving economy, presents a compelling picture when it comes to family income. Understanding the Massachusetts Median Family Income is crucial for grasping the economic well-being of families in the state. This article delves into the latest data, providing a comprehensive overview of family income in Massachusetts, comparing it with other income metrics, and exploring the factors that contribute to these figures.
According to the most current data from the US Census Bureau, the median family income for Massachusetts stands at $128,134. This figure represents the midpoint of family incomes in the state, meaning half of Massachusetts families earn more than this amount, and half earn less. It’s a significant indicator of the financial status of families, which are defined as households with two or more people related by birth, marriage, or adoption.
To put this number into perspective, it’s helpful to compare it with other income statistics available for Massachusetts:
- Average Family Income: The average family income in Massachusetts is higher, at $170,075. The average is skewed upwards by very high earners, making the median a more representative measure for typical families.
- Median Household Income: For all households (including single-person households), the median income in Massachusetts is $78,387. This is lower than the median family income because it includes individuals living alone, who often have lower incomes.
- Per Capita Income: The per capita income in Massachusetts is $56,284. This is calculated by dividing the total income by the total population, including children and non-working individuals, making it generally lower than household or family income figures.
Understanding the difference between median and average income is crucial for interpreting economic data. The median is the midpoint, less affected by outliers, while the average is the sum divided by the count, influenced by extreme values.
Factors Influencing Massachusetts Family Income
Several factors contribute to Massachusetts’s robust median family income. The state boasts a strong and diverse economy, driven by sectors like technology, healthcare, education, and finance. This economic landscape supports a wide range of high-paying jobs, contributing to higher family incomes.
Education plays a pivotal role as well. Massachusetts is home to numerous prestigious universities and colleges, fostering a highly educated workforce. Higher educational attainment is strongly correlated with increased earning potential, thus boosting family income levels.
However, it’s important to acknowledge the high cost of living in Massachusetts, particularly in housing. While incomes are generally high, expenses, especially for housing, childcare, and education, also tend to be elevated. This cost of living factor influences the real purchasing power of the median family income in the state.
Massachusetts Family Income Distribution
Examining the income distribution provides a more detailed picture of family finances across different income brackets. The following table illustrates the distribution of households across various income levels in Massachusetts:
| Income Range | Households | Percentage |
|---|---|---|
| Less than $10,000 | 119,101 | 4% |
| $10,000 to $14,999 | 97,443 | 4% |
| $15,000 to $19,999 | 77,973 | 3% |
| $20,000 to $24,999 | 77,544 | 3% |
| $25,000 to $29,999 | 73,019 | 3% |
| $30,000 to $34,999 | 68,402 | 2% |
| $35,000 to $39,999 | 71,220 | 3% |
| $40,000 to $44,999 | 70,760 | 3% |
| $45,000 to $49,999 | 70,319 | 3% |
| $50,000 to $59,999 | 133,222 | 5% |
| $60,000 to $74,999 | 202,761 | 7% |
| $75,000 to $99,999 | 303,224 | 11% |
| $100,000 to $124,999 | 266,007 | 10% |
| $125,000 to $149,999 | 222,468 | 8% |
| $150,000 to $199,999 | 326,064 | 12% |
| $200,000 or more | 582,543 | 21% |
This distribution highlights that a significant portion of Massachusetts households, 21%, earn $200,000 or more, indicating a considerable upper-income segment. However, it also shows that there are families across all income levels, emphasizing the diversity of economic experiences within the state.
Family Income by Age Group
Median family income also varies across different age groups of householders, reflecting career progression and life stages:
| Age of Householder | Median Household Income |
|---|---|
| Under 25 years | $55,122 |
| 25 to 44 years | $116,186 |
| 45 to 64 years | $124,618 |
| 65 years and over | $64,818 |
As anticipated, median income is lower for younger householders under 25, typically at the beginning of their careers. Income peaks for those in the 45 to 64 age range, representing peak earning years. It then decreases for householders aged 65 and over, as many transition into retirement and rely on retirement income sources.
Richest Zip Codes in Massachusetts and Income
While median family income provides a statewide overview, income levels vary significantly geographically within Massachusetts. Some zip codes in Massachusetts are among the wealthiest in the nation. These areas often exhibit significantly higher household incomes, which indirectly reflect higher family incomes as well.
Here are the top 10 richest zip codes in Massachusetts based on mean household income:
| Rank | Zip Code | Population | Mean Income | Median Household Income |
|---|---|---|---|---|
| 1 | 02030 | 5,893 | $421,148 | $250,001 |
| 2 | 02493 | 11,443 | $418,972 | $250,001 |
| 3 | 02481 | 17,262 | $406,233 | $250,001 |
| 4 | 02468 | 5,901 | $382,381 | $250,001 |
| 5 | 02482 | 10,758 | $323,764 | $240,069 |
| 6 | 01741 | 5,209 | $323,531 | $250,001 |
| 7 | 02420 | 16,287 | $322,111 | $233,068 |
| 8 | 01770 | 4,404 | $318,043 | $247,500 |
| 9 | 01773 | 5,257 | $312,797 | $197,292 |
| 10 | 02459 | 18,604 | $305,451 | $214,941 |
These zip codes, located in areas like Dover, Weston, and Wellesley, demonstrate exceptionally high mean and median household incomes, suggesting that families in these regions experience a significantly higher level of affluence.
Data Source and Methodology
The data presented in this article is derived from the American Community Survey 2023 5-year estimates provided by the US Census Bureau. The income figures are inflation-adjusted to 2023 dollars, ensuring comparability. The statistics are based on a comprehensive dataset and represent the most current and reliable income information available for Massachusetts.
The following data tables from the US Census Bureau were utilized in the analysis:
- B01001 Sex By Age
- B11003 Family Type by Presence and Age of Own Children Under 18 Years
- B19001 Household Income in the Past 12 Months (in 2023 inflation adjusted dollars)
- B19013 Median Household Income in the Past 12 months (in 2023 inflation-adjusted dollars)
- B19019 Median Household Income in the Past 12 Months (in 2023 Inflation-Adjusted Dollars) by Household Size
- B19049 Median Household Income In The Past 12 Months (in 2023 Inflation-adjusted dollars) By Age Of Householder
- B19055 Social Security Income in the Past 12 Months for Households
- B19059 Retirement Income in the Past 12 Months for Households
- B19065 Aggregate Social Security Income in the Past 12 Months (in 2023 Inflation-Adjusted Dollars) for Households
- B19069 Aggregate Retirement Income in the Past 12 Months (in 2023 Inflation-Adjusted Dollars) for Households
- B19113 Median Family Income in the Past 12 Months (in 2023 Inflation-Adjusted Dollar
- B19127 Aggregate Family Income in the Past 12 Months (in 2023 Inflation-Adjusted Dollars)
- B19301 Per Capita Income in the Past 12 months (in 2023 inflation-adjusted dollars)
- B20003 Aggregate Earnings in the Past 12 Months (in 2023 Inflation-Adjusted Dollars) by Sex by Work Experience for the Population 16 Years and Over With Earnings
- B20005 Sex by Work Experience in the Past 12 Months by Earnings in the Past 12 Months (in 2023 Inflation-Adjusted Dollars) for the Population 16 Years and Over
- B20018 Median Earnings in the Past 12 Months (in 2023 Inflation-Adjusted Dollars) for the Population 16 Years and Over Who Worked Full-Time, Year-Round With Earnings in the Past 12 Months
- S1902 Mean Income in the Past 12 months (in 2023 inflation-adjusted dollars)
Conclusion
The Massachusetts median family income of $128,134 in 2024 reflects a relatively strong economic standing for families in the state. While influenced by a high cost of living, this figure, along with the detailed income distribution and variations across age groups and geographies, provides valuable insights into the financial landscape of Massachusetts families. Understanding these income dynamics is essential for policymakers, businesses, and families alike in navigating the economic environment of the state.
