Cost of Living In Watertown, MA

Set along the Charles River, Watertown blends converted brick mills, tree-shaded neighborhoods, and the aroma of fresh pita drifting from family-run markets.

Living here costs more than in many corners of Massachusetts, yet the trade-off is quick access to Cambridge labs, Boston offices, and a steady calendar of things to do in Watertown that keeps weekends lively. 

This guide breaks down every major expense from housing, utilities, groceries, and more, so you can decide if the town’s mix of urban energy and small-town familiarity suits your budget.

Buying in Watertown means bidding on everything from 19th-century colonials with deep front porches to sleek condo lofts carved out of former factories. 

Mid-2025 data pins the median sale around $865,000, higher than the U.S. norm but still shy of price tags in nearby Cambridge or Newton. Scroll through homes for sale in Watertown and you’ll notice that many listings sit on quiet, tree-lined streets yet remain minutes from Boston-bound bus lines.

Sticker shock eases when you factor in square footage and yard space. A townhouse here often delivers an extra bedroom or bonus room compared with similarly priced units inside the city, and single-family lots fit a small garden or patio without stretching the commute.

For buyers who want elbow room without abandoning urban access, Watertown’s housing market strikes a workable middle ground.

Recent rental snapshots from July 2025 put a typical one-bedroom around $2,400 per month, give or take a couple of hundred dollars depending on the block and building age. 

Two-bedrooms cluster near $3,100, while larger townhome-style units can push above $3,600 if they sit close to Arsenal Yards or boast in-unit laundry and garage parking.

Prices swing a bit across the town’s three square miles. Older triple-deckers east of the riverbank often undercut sleek mid-rise complexes by a few hundred dollars, and you might snag a garden-level studio for under $2,000 if you keep an eye out.

Even so, most renters still pay less here than they would for a comparable layout in Cambridge or downtown Boston, making Watertown a workable middle ground for people who want city access without the steepest metro rents.

Massachusetts has a state sales tax of 6.25% on most tangible personal property and certain services. Groceries for home consumption are generally exempt, while prepared meals at restaurants are taxed. The statewide rate has not changed recently.

For personal income, Massachusetts taxes most wage and salary income at a 5% flat rate. A 4% surtax applies only to income above $1,083,150 for Tax Year 2025, so higher-income households should plan accordingly.

Watertown sets its tax rate annually.

For FY 2025, the residential property tax rate is $11.68 per $1,000 of assessed value, with a 24% residential exemption for owner-occupied homes. Bills also include a 2% Community Preservation Act (CPA) surcharge, which supports local open space, affordable housing, and historic resources. Rates and exemptions are adopted each year by the City Council after classification and state approval.

To translate that into a rough annual bill: a home assessed at $900,000 would show a base levy near $10,512 before the residential exemption and CPA surcharge. Your actual bill will reflect your certified assessment, any exemptions, and the CPA line item set at 2%.

Electricity supply rates in Eastern Massachusetts change seasonally.

As of August 1, 2025, Eversource’s Basic Service supply rate for residential customers rose to about 14.884 cents per kWh. On 500 kWh of monthly usage, that supply portion would be roughly $74 before distribution charges, customer charges, and any municipal aggregation adjustments. Delivery charges vary by usage tier, but the supply math offers a consistent way to estimate. 

Water and sewer are billed by the city. For FY 2025, Watertown’s water rate is $6.80 per 100 cubic feet (CCF, and the sewer rate is $10.71 per CCF. A two-person household using 6 CCF in a month would see about $41 for water and $64 for sewer, before fixed fees. Your total will scale with actual consumption and seasonal outdoor use.

Grocery costs track the Boston metro market and are not subject to Massachusetts sales tax when purchased for home consumption.

Households usually set monthly food budgets by size and eating habits, not by city line, but it helps to use a consistent yardstick. The MIT Living Wage Calculator provides a detailed expense model for Massachusetts and its counties, updated in 2025; its food-at-home estimates by household type offer a practical baseline you can adapt to your own shopping routine.

Shoppers in Watertown have access to both large chains and specialty grocers along Arsenal Street and Mt. Auburn Street, plus farmers market options nearby. Using a line-item budget and tracking a few months of receipts will quickly show whether your personal costs are trending higher or lower than the model.

MBTA bus service is the backbone for many residents. Routes 70, 71, and 73 connect Watertown Square and Coolidge Square with Harvard Square and Central Square, and city planning has prioritized bus priority improvements on Mt. Auburn Street to keep buses moving through peak congestion. For regular riders, the LinkPass that covers the subway and local bus is $90 per month in 2025. 

If you drive, fuel and excise are the big ongoing items. Massachusetts motorists paid an average $3.65 per gallon of regular gas on September 9, 2025, according to AAA.

Separately, all vehicles garaged in the city are billed a motor vehicle excise tax of $25 per $1,000 of taxable value each calendar year, with value set by a statutory schedule based on the manufacturer’s list price. 

Recent American Community Survey releases show that median household income in Watertown reached about $123,422 in 2023, reflecting strong employment across the Cambridge-Boston tech, education, and healthcare corridors. This is a municipal figure and helps frame affordability alongside local housing costs. 

One common rule of thumb is to keep total housing costs at or under 30% of gross income. HUD defines households spending more than 30% on housing and utilities as cost-burdened.

Using Watertown’s typical rent of $2,995 per month as of September 2025, a renter aiming for the 30% threshold would target roughly $120,000 in gross annual income. Households with different expenses or savings goals may choose higher or lower ratios, but the benchmark is a consistent starting point. 

Housing is the biggest gap.

In July 2025, the U.S. median sale price was about $443,019, while Watertown’s was about $865,000.

On the rental side, the U.S. typical rent was approximately $2,072 in July 2025, compared with $2,995 in Watertown in early September. Those two comparisons explain most of the difference between the average cost of living in Watertown and the national average. 

Other everyday costs line up more closely with big-city peers. Transit riders can hold monthly costs to a predictable pass price, while drivers face Boston-area parking considerations and higher-than-average insurance common to dense urban markets.In short, living in Watertown feels pricier day-to-day, but the premium buys immediate access to Boston jobs, short commutes, and a neighborhood vibe that mixes condo lofts with riverside green space. 

Watertown is incorporated as a city, though it is often called Watertown town in federal datasets. The city sets property tax rates and exemptions annually following state classification; FY 2025 uses a residential rate of $11.68 per $1,000 with a 24% residential exemption. 

No. Most grocery items for home consumption are exempt from the state’s 6.25% sales tax. Prepared meals from restaurants or the restaurant section of a store are taxed.

MBTA bus routes 70, 71, and 73 connect Watertown to Red Line and Green Line transfer points, with bus priority installed on parts of Mt. Auburn Street to improve reliability.

Frequent riders typically use the MBTA LinkPass for bus and subway travel, priced at $90 per month in 2025. 

Eversource’s Basic Service supply rate resets seasonally through state-regulated procurement, so you will see different cents-per-kWh rates in winter and summer. The current residential supply rate is about 14.884 cents per kWh effective August 1, 2025. 

Yes. Massachusetts assesses a motor vehicle excise tax annually through your city or town at $25 per $1,000 of taxable value, with value determined by a statewide schedule.

They are higher. The city’s July 2025 median sale price was roughly $865,000 versus $443,019 nationally, and typical rent was around $2,995 locally versus $2,072 nationally in late summer 2025.