Families in the top five most expensive U.S. states require an annual income exceeding $270,000 to live comfortably.
This visualization, via Visual Capitalist's Bruno Venditti, illustrates the income necessary for two working adults with two children to maintain a comfortable lifestyle in each state.
“Comfortable” is defined as the income needed to cover a 50/30/20 budget, with 50% allocated to necessities like housing and utilities, 30% to discretionary spending, and 20% to savings or investments.
The calculations for family income needed in each state were done by SmartAsset, using the cost of necessities sourced from the MIT Living Wage Calculator, last updated on Feb. 14, 2024.
Massachusetts Tops the List
Massachusetts is the most expensive state to live comfortably in, requiring a total family income of about $301,184. Hawaii ($294,611) comes in second, followed by Connecticut ($279,885).
Housing is one main reason Massachusetts is an expensive state to live in, particularly in the Boston area. In addition, the state also has a high cost of living, including expenses such as healthcare and utilities.
| Rank | State | Income for 2 working adults raising 2 children |
|---|---|---|
| 1 | Massachusetts | $301,184 |
| 2 | Hawaii | $294,611 |
| 3 | Connecticut | $279,885 |
| 4 | New York | $278,970 |
| 5 | California | $276,723 |
| 6 | Colorado | $264,992 |
| 7 | Washington | $257,421 |
| 8 | Oregon | $257,338 |
| 9 | New Jersey | $251,181 |
| 10 | Rhode Island | $249,267 |
| 11 | Vermont | $248,352 |
| 12 | Minnesota | $244,774 |
| 13 | New Hampshire | $244,109 |
| 14 | Alaska | $242,611 |
| 15 | Maryland | $239,450 |
| 16 | Nevada | $237,286 |
| 17 | Virginia | $235,206 |
| 18 | Illinois | $231,962 |
| 19 | Arizona | $230,630 |
| 20 | Pennsylvania | $230,464 |
| 21 | Maine | $229,549 |
| 22 | Delaware | $228,966 |
| 23 | Wisconsin | $225,056 |
| 24 | Utah | $218,483 |
| 25 | Michigan | $214,490 |
| 26 | Nebraska | $213,075 |
| 27 | Georgia | $212,826 |
| 28 | Montana | $211,411 |
| 28 | Iowa | $211,411 |
| 30 | Idaho | $211,245 |
| 31 | North Carolina | $209,331 |
| 31 | Ohio | $209,331 |
| 33 | Florida | $209,082 |
| 34 | Indiana | $206,003 |
| 35 | New Mexico | $203,923 |
| 36 | Wyoming | $203,424 |
| 37 | Missouri | $202,259 |
| 38 | North Dakota | $202,176 |
| 39 | Texas | $201,344 |
| 40 | South Carolina | $200,762 |
| 41 | Kansas | $196,768 |
| 42 | Tennessee | $195,770 |
| 43 | Oklahoma | $194,106 |
| 44 | Alabama | $193,606 |
| 45 | South Dakota | $192,608 |
| 46 | Kentucky | $190,112 |
| 47 | Louisiana | $189,613 |
| 48 | West Virginia | $189,363 |
| 49 | Arkansas | $180,794 |
| 50 | Mississippi | $177,798 |
Meanwhile, Mississippi is the least expensive state for a family to live comfortably, requiring $177,798 per year. Arkansas ($180,794) comes in second, followed by West Virginia ($189,363). In common, all these states share low prices of housing.
If you enjoyed this post, be sure to check out this graphic, which ranks the median down payment for a house by U.S. state.
