New Study Shows the Income Needed to Live Comfortably in Each US State

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Published On: June 6th, 2025

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🏡 Here’s the Salary It Takes to Live Comfortably in Each U.S. State – 2025 Study

With inflation and living costs rising across the country, many Americans are wondering: how much income does it really take to live comfortably in 2025?

A new study from SmartAsset, using data from the MIT Living Wage Calculator, provides a clear answer. It breaks down how much pre-tax income single adults and families of four need in each state to afford basic needs, discretionary spending, and long-term financial goals — all while following the popular 50/30/20 budgeting rule.

💰 What Is the 50/30/20 Budget Rule?

The 50/30/20 rule is a simple framework that allocates:

50% of income to necessities (housing, groceries, transportation, healthcare)
30% to wants (entertainment, travel, hobbies)
20% to savings or debt repayment

By applying this model to cost-of-living data, the study estimates the income needed to maintain a financially comfortable lifestyle — not just surviving, but thriving.

📈 National Highlights from the 2025 Data

The average salary needed to live comfortably in the U.S. rose by $5,844 for single adults and $9,360 for families compared to last year.
Hawaii remains the most expensive state for individuals, with a required salary of $124,467.
Massachusetts tops the list for families, where a family of four needs $313,747 to live comfortably.
West Virginia and Mississippi are the most affordable, with required incomes under $87,000 for single adults.
Montana and Vermont saw the sharpest increases, with income needs rising by over 9% for single adults and up to 15% for families.

🌴 Top 10 States Where You Need the Highest Salary to Live Comfortably (Single Adults)

Rank	State	Salary Needed (2025)
1	Hawaii	$124,467
2	Massachusetts	$120,141
3	California	$119,475
4	New York	$114,691
5	Washington	$109,658
6	New Jersey	$108,992
7	Maryland	$108,867
8	Virginia	$106,704
9	Colorado	$105,955
10	Connecticut	$105,165

These states reflect strong economies but come with steep housing and tax costs. Coastal regions, in particular, continue to lead in affordability challenges.

🏠 Top 10 States Where It’s Cheapest to Live Comfortably (Single Adults)

Rank	State	Salary Needed (2025)
50	West Virginia	$80,829
49	Arkansas	$81,078
48	South Dakota	$82,160
47	North Dakota	$82,285
46	Kentucky	$83,574
45	Oklahoma	$84,282
44	Ohio	$84,781
43	Alabama	$85,280
42	Louisiana	$85,322
41	Mississippi	$86,320

Midwestern and Southern states dominate the affordability rankings, offering significantly lower income thresholds for comfort — particularly important for remote workers and retirees.

👨‍👩‍👧‍👦 What About Families of Four?

For households with two working adults and two children, these are the most expensive states to live comfortably:

Rank	State	Family Salary Needed (2025)
1	Massachusetts	$313,747
2	Hawaii	$294,362
3	Connecticut	$290,368
4	California	$287,456
5	Vermont	$286,790
6	New Jersey	$282,714
7	Washington	$277,888
8	New York	$276,973
9	Colorado	$273,728
10	Rhode Island	$256,672

In contrast, the cheapest states for a family of four are:

Rank	State	Family Salary Needed (2025)
50	Mississippi	$186,618
49	Kentucky	$192,941
48	Arkansas	$193,773
47	Alabama	$194,522
46	West Virginia	$195,354
45	South Dakota	$197,933
44	Louisiana	$199,597
43	Tennessee	$200,678
42	Kansas	$200,678
41	Iowa	$202,675

📊 Full State-by-State Salary Table

👉 For the complete breakdown, SmartAsset provides an interactive visualization of the income needed in all 50 states:

📈 What’s Driving These Increases?

Several factors have led to the rising income requirements across the country:

Persistent inflation in housing, healthcare, food, and fuel.
Stagnant wage growth in many regions, especially for low- and middle-income earners.
High mortgage and rent costs amid limited housing supply.
Childcare and education expenses disproportionately affecting families.

These changes have made financial comfort a moving target — and budgeting more important than ever.

🧠 What This Means for Renters, Homebuyers, and Property Investors

Whether you’re deciding where to relocate, trying to budget for a move, or evaluating the ROI on a turnkey investment property, this data provides a critical benchmark for:

Cost of living comparisons across states
Salary negotiation benchmarks
Planning for retirement or relocation
Determining real estate affordability by market

For property investors, focussing on regional markets with a relatively low cost of living, stable jobs market, and affordable housing is a great strategy to identify profitable investment opportunities. House prices tend to appreciate where there is demand, and demand for housing is strongest where it is most affordable.

🧾 Methodology

SmartAsset used MIT’s Living Wage Calculator (updated February 2025) to estimate necessary spending on essential expenses for single adults and families. They then applied the 50/30/20 budgeting rule to determine the total gross income needed for a “comfortable” life.

💡 Final Thoughts

Living comfortably in America is getting more expensive — and where you live matters more than ever. From the beaches of Hawaii to the hills of West Virginia, income needs can vary by over $40,000 per year.

Use this data to make informed financial decisions, whether you’re choosing where to move, how much to save, or when to invest. And remember, budgeting and planning can make a bigger difference than income alone.

📍Want help understanding how your budget stacks up in your state? Talk to a local real estate expert or financial planner to make sure you’re on the right path.

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