Taxation and Cost of Services
Taxes significantly influence the overall cost of living. States like California and Massachusetts carry some of the country’s highest income tax and property tax burdens.
Property taxes vary widely by city and are often tied to the quality of schools, infrastructure, and public services. Communities with exceptional amenities frequently impose higher taxes to maintain them.
Sales taxes add another layer of daily cost. In dense urban areas, residents may encounter additional taxes on restaurant meals, hotel stays, parking, entertainment, and retail purchases.
Utility expenses also differ across regions. For example, Massachusetts has some of the highest electricity rates in the country, raising monthly bills for homeowners and renters.
Municipal fees — such as parking permits, business licenses, and service charges — tend to be more expensive in large cities, contributing to the cumulative cost of living.
