A recent study by SmartAsset shows that in most states in the United States, a family of four needs to earn at least $106,903 annually to meet basic living expenses. However, there can be significant differences between states.
The research is based on estimates of the cost of housing, childcare, transportation, healthcare, taxes, and other common expenses using the MIT Living Wage Calculator. Discretionary expenses such as investments and entertainment or travel costs are not included.
In terms of basic living expenses for a family of four, Massachusetts is the most expensive, requiring as much as $150,578 annually; in contrast, living in Mississippi is the most affordable, with a yearly cost of only $88,895 to support a household.
The cost differences between states are primarily due to housing and taxes, especially if you reside in major cities like Los Angeles or New York, where housing and taxes can be more than three times higher. However, correspondingly, the median income in big cities tends to be higher as well.
According to data from consulting firm Motio Research, the median estimated household income for most families in the United States is $78,171, while the basic expenses for a family of four in each state exceed this figure.
Here are the minimum basic living expenses for a family of four in each state (listed in alphabetical order):
Alabama
Annual income required for a family of four: $96,805
Alaska
Annual income required for a family of four: $121,295
Arizona
Annual income required for a family of four: $115,314
Arkansas
Annual income required for a family of four: $90,394
California
Annual income required for a family of four: $138,357
Colorado
Annual income required for a family of four: $132,486
Connecticut
Annual income required for a family of four: $139,924
Delaware
Annual income required for a family of four: $114,467
Florida
Annual income required for a family of four: $104,524
Georgia
Annual income required for a family of four: $106,414
Hawaii
Annual income required for a family of four: $147,319
Idaho
Annual income required for a family of four: $105,611
Illinois
Annual income required for a family of four: $115,961
Indiana
Annual income required for a family of four: $102,985
Iowa
Annual income required for a family of four: $105,698
Kansas
Annual income required for a family of four: $98,369
Kentucky
Annual income required for a family of four: $95,043
Louisiana
Annual income required for a family of four: $94,791
Maine
Annual income required for a family of four: $114,784
Maryland
Annual income required for a family of four: $119,720
Massachusetts
Annual income required for a family of four: $150,578
Michigan
Annual income required for a family of four: $107,249
Minnesota
Annual income required for a family of four: $122,387
Mississippi
Annual income required for a family of four: $88,895
Missouri
Annual income required for a family of four: $101,142
Montana
Annual income required for a family of four: $105,689
Nebraska
Annual income required for a family of four: $106,557
Nevada
Annual income required for a family of four: $118,649
New Hampshire
Annual income required for a family of four: $122,072
New Jersey
Annual income required for a family of four: $125,609
New Mexico
Annual income required for a family of four: $101,959
New York
Annual income required for a family of four: $139,504
North Carolina
Annual income required for a family of four: $104,684
North Dakota
Annual income required for a family of four: $101,085
Ohio
Annual income required for a family of four: $104,658
Oklahoma
Annual income required for a family of four: $97,073
Oregon
Annual income required for a family of four: $128,652
Pennsylvania
Annual income required for a family of four: $115,218
Rhode Island
Annual income required for a family of four: $124,649
South Carolina
Annual income required for a family of four: $100,368
South Dakota
Annual income required for a family of four: $96,286
Tennessee
Annual income required for a family of four: $97,867
Texas
Annual income required for a family of four: $100,689
Utah
Annual income required for a family of four: $109,231
Vermont
Annual income required for a family of four: $124,190
Virginia
Annual income required for a family of four: $117,618
Washington
Annual income required for a family of four: $128,730
West Virginia
Annual income required for a family of four: $94,672
Wisconsin
Annual income required for a family of four: $112,529
Wyoming
Annual income required for a family of four: $101,693