Cost of Living Analysis: Income Thresholds for Comfortable Living in Every U.S. State
A recent report by SmartAsset revealed that a single adult earning less than $80,000 per year would struggle to live comfortably in any U.S. state. Families of four, on the other hand, need to earn over $200,000 to maintain a comfortable lifestyle in most states. The report used data from the Massachusetts Institute of Technology’s Living Wage Calculator to determine the basic costs of living, including housing, transportation, taxes, and other expenses. By applying the 50/30/20 budgeting rule, which allocates income to necessities, discretionary spending, and savings, the report identified the income thresholds needed for a comfortable life.
According to the report, West Virginia is the most affordable state for single adults, where a salary of $80,829 is sufficient for a comfortable lifestyle. In 18 other states, individuals earning between $80,000 and $90,000 could afford a reasonable lifestyle, including states like Arkansas, Kentucky, Ohio, Indiana, Michigan, and New Mexico. However, the remaining 31 states require salaries above $90,000, with 15 of them, mostly coastal states, necessitating incomes exceeding $100,000. Hawaii emerged as the most expensive state, where a single adult would need an income of $124,467 to live comfortably, followed by Massachusetts, California, and New York.
For families of four with two working adults, Mississippi was identified as the most affordable state, requiring an income of $186,618 for a comfortable lifestyle. Only six other states had income thresholds below $200,000, including Kentucky, Arkansas, Alabama, West Virginia, South Dakota, and Louisiana. Conversely, Massachusetts was the most expensive state for a family of four, where an income of $313,747 was needed for a comfortable life, followed by Hawaii, Connecticut, and California. Overall, families in all states need to earn approximately $9,360 more than the previous year to maintain a comfortable budget.