A recent study has revealed the incomes needed for families to live comfortably across the United States - and the stark contrast in the cost of living between states is startling.
The study revealed that in the most expensive states, families need nearly $300,000 to simply live 'comfortably.'
The least expensive state requires about half that salary - still over $100,000.
Meanwhile, the average annual salary in the US is $59,428, or $28.34 per hour,as of May 2024.
The number one most expensive state to live comfortably in isMassachusetts, where a family with two working parents and two children needs a total family income of $301,184.
In contrast, Mississippiis the least expensive, where a family requires $177,798 to cover their expenses and maintain a satisfactory quality of life.
Scroll your mouse or hold your finger over the states below to see the income needed to live there comfortably.
Surprisingly, the number one most expensive state to live comfortably in is Massachusetts , where a family with two working parents and two children needs a total family income of about $301,184
In contrast, Mississippi stands out as the least expensive state, where a family requires an income of $177,798 to cover their expenses and maintain a satisfactory quality of life
The lower cost of housing and overall expenses contribute to Mississippi's affordability relative to other states.
The study utilized 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. This approach allocated 50 percent of earnings to cover necessities such as housing, utilities, and groceries, ensuring that families could meet their basic needs without financial strain.
Another 30 percent went towards discretionary spending, including flexibility in lifestyle choices and leisure activities. And the remaining 20 percent was used towards savings or investments, promoting financial security and long-term stability.
The analysis further revealed that to live comfortably in the top five states, families need to earn over $270,000 per year, as reported by Visual Capitalist.
Following closely behind Massachusetts is Hawaii, where families require a substantial income of $294,611 to enjoy a comfortable lifestyle.
The high cost of living in the tropical paradise poses a considerable financial challenge for residents.
Connecticut ranked third on the list, with a comfortable living income requirement 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 drives up living expenses for residents across the Empire State.
Rounding out the top five is California, where a family requires an income of $276,723 to cover their expenses comfortably.
After Mississippi, Arkansas made the second spot as the least expensive state, where family needs an income of $180,794 to cover their expenses comfortably.
Then comes West Virginia, where families require an income of $189,363 to maintain a comfortable lifestyle.
Following closely behind is Louisiana with a comfortable living income requirement of $189,613.
Rounding out the list as the top 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 US cities, where the cost of living is particularly high, an annual $100,000 income is only enough to qualify as 'lower middle class'.
A six-figure salary may once have been considered the benchmark of a comfortable lifestyle in the US.
A February report suggested a $100,000 income 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.' Workers need to 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, which was a decrease from 3.4 percent in December but still 0.2 percent higher than expected
Those earning six figures in these areas means they are among the poorest 40 percent - failing to meet the definition of middle class.
In three of the priciest cities - Arlington, San Francisco and San Jose - earning $150,000 a year is not even enough to move from 'lower middle class' and be considered fully middle class. See definitions in box below.
The findings, from personal finance website GoBankingRates, lay bare how much rampant inflation is stretching even high-income families.
Crippling rises to the cost of groceries, housing, childcare and transport have hit the whole of America, and some areas more than others.
Arlington in Virginia came out as the most expensive city, with households need at least $91,591 to be considered 'lower middle class'. Not until they reach $152,652 would they qualify as middle class.
