Cost of Living Analysis: How Much Do You Need to Live Comfortably in Each State?
Earning a comfortable living can vary greatly depending on where you reside. SmartAsset recently analyzed data from the MIT Living Wage Calculator and applied the 50/30/20 budgeting rule to determine the pre-tax salary needed for Americans to live comfortably. This rule allocates 50% of the budget to needs, 30% to wants, and 20% to debt, saving, or investing. The analysis focused on the income required for a family of four, consisting of two working adults and two children, to live comfortably across the United States.
Massachusetts emerged as the most expensive state, with a family needing over $313,000 to achieve a comfortable lifestyle. Hawaii followed closely behind, requiring nearly $294,400. However, there are states where a family can afford to live comfortably on less than $200,000. Mississippi topped the list, with a family of four needing less than $186,700 based on the 50/30/20 rule.
The most affordable states for a family to live comfortably were primarily located east of the Mississippi River. Louisiana, for instance, required an income of about $199,600 for a family of four. Some states have seen a decrease in the cost of living comfortably since SmartAsset's 2024 report. Iowa experienced the largest drop, with the necessary salary decreasing from $211,400 to about $202,700, marking a 4% decrease.
On the other hand, Vermont, New Jersey, and Montana saw significant increases in the income needed for a family to live comfortably. Vermont saw a 15.5% increase, requiring an income of $286,800, while New Jersey and Montana had increases of 12.5% and 11.1%, respectively. Nationally, the median salary required for a family of four to live comfortably was approximately $223,100.
For more detailed information, you can refer to SmartAsset's full report.