A recent study revealed the income families in the United States need to live comfortably – and the stark contrast in the cost of living between states is startling.
The survey shows that families in the most expensive states need nearly $300,000 to simply live “comfortably.”
The least expensive state requires about half that salary — still more than $100,000.
Meanwhile, the average annual salary in the US is $59,428, or $28.34 per hour, as of May 2024.
The most expensive state to live comfortably in is Massachusetts, where a family with two working parents and two children needs a total household income of $301,184.
In contrast, the least expensive is Mississippi, where a family needs $177,798 to cover their expenses and maintain a satisfactory quality of life.
Scroll or hold your finger over the states below to see the income needed to live there comfortably.
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Surprisingly, the most expensive state to live comfortably in is Massachusetts, where a family with two working parents and two children needs a total household income of about $301,184.
In contrast, Mississippi stands out as the least expensive state, where a family needs an income of $177,798 to cover its expenses and maintain a satisfactory quality of life.
The lower cost of housing and overall expenses contribute to Mississippi’s affordability compared to other states.
The study used data from the MIT Living Wage Calculator, last updated on February 14.
To determine the income needed for a comfortable lifestyle, researchers used a balanced budgeting strategy. Under this approach, 50 percent of income was spent on necessities such as housing, utilities and groceries, so that families could meet their basic needs without financial pressure.
Another 30 percent went to discretionary spending, including flexibility in lifestyle choices and leisure activities. And the remaining 20 percent was used for savings or investments, which promoted long-term financial security and stability.
The analysis further found that to live comfortably in the top five states, families must earn more than $270,000 per year, as reported by Visual Capitalist.
Just behind Massachusetts is Hawaii, where families need a substantial income of $294,611 to enjoy a comfortable lifestyle.
The high cost of living in the tropical paradise poses a significant financial challenge for residents.
Connecticut ranks third on the list, with a comfortable lifetime income of $279,885.
Then, of course, New York claimed the fourth spot, with families needing an annual income of $278,970 to maintain a comfortable lifestyle.
The competitive housing market is driving up the cost of living for residents throughout the Empire State.
Rounding out the top five is California, where a family needs an income of $276,723 to comfortably cover its expenses.
After Mississippi, Arkansas is the second least expensive state, with families needing an income of $180,794 to comfortably cover their expenses.
Then comes West Virginia, where families need an income of $189,363 to maintain a comfortable lifestyle.
Closely followed by Louisiana, with a comfortable lifetime income of $189,613.
Rounding out the list as the fifth least expensive state to live comfortably in is Kentucky, where a family needs an annual income of $190,112 to cover their expenses.
In February, a report suggested that in 15 major U.S. cities, where the cost of living is particularly high, an annual income of $100,000 is only enough to qualify as “lower middle class.”
A six-figure salary could one day be considered the benchmark for a comfortable lifestyle in the US.
A February report suggested that an income of $100,000 is only enough to qualify as ‘lower middle class’ in 15 major US cities
San Jose, CA, requires the third highest salary to qualify as “lower middle class.” Employees must earn between $90,673 and $151,122
San Francisco, CA, families need between $91,126 and $151,877 to be considered lower middle class
Annual inflation was 3.1 percent in January, down from 3.4 percent in December but still 0.2 percent higher than expected
Those earning six figures in these areas mean they are in the poorest 40 percent and do not meet the definition of middle class.
In three of the most expensive cities—Arlington, San Francisco, and San Jose—an income of $150,000 a year isn’t even enough to step out of the “lower middle class” and be considered fully middle class. See the definitions in the box below.
The findings from personal finance website GoBankingRates expose how much rampant inflation is putting pressure on even high-income families.
Crippling increases in the costs of groceries, housing, childcare and transportation have hit all of America, and some areas more than others.
Arlington, Virginia emerged as the most expensive city, with households needing at least $91,591 to be considered “lower middle class.” Only when they reach $152,652 would they qualify as middle class.