The income a family of 4 needs to live comfortably in every state
The most expensive state to raise a family of four isn’t New York, California or Hawaii — it’s Massachusetts, according to a recent SmartAsset study.
To live comfortably in Massachusetts, a family of two working adults and two kids would need to earn $301,184 annually.
“Comfortable” is defined as the income needed to cover a 50/30/20 budget for a family of four. The budget allocates 50% of your earnings for necessities such as housing and utility costs, 30% for discretionary spending and 20% for savings or investments.
SmartAsset extrapolated the income needed for a 50/30/20 budget based on the cost of necessities, using data from the MIT Living Wage Calculator.
Here’s a look at how much income a family of four needs to live comfortably in the five most-expensive states:
- Massachusetts: $301,184
- Hawaii: $294,611
- Connecticut: $279,885
- New York: $278,970
- California: $276,723
While most of these states are known for high housing costs, Massachusetts also has higher total costs for other categories, such as child care, food and medical expenses, according to the MIT Living Wage Calculator.
In contrast to these states, Mississippi is the least-expensive state to raise a family, requiring only $177,798 per year in annual income. The median for the U.S. as a whole is $213,782.
As a general trend, more rural U.S. states have lower costs compared with states home to numerous large cities, such as California and New York — especially when it comes to housing.
But rural states tend to have lower wages, too. The median annual wage for workers in Mississippi is $37,500, compared with $56,840 in New York, for example, according to Bureau of Labor Statistics data.
As a result, some of the higher costs of living in urban states are offset through higher wages.
Here’s a look at the income needed for a family of four to live comfortably in each state, listed in alphabetical order.
Alabama
- Annual income needed to live comfortably: $193,606
Alaska
- Annual income needed to live comfortably: $242,611
Arizona
- Annual income needed to live comfortably: $230,630
Arkansas
- Annual income needed to live comfortably: $180,794
California
- Annual income needed to live comfortably: $276,723
Colorado
- Annual income needed to live comfortably: $264,992
Connecticut
- Annual income needed to live comfortably: $279,885
Delaware
- Annual income needed to live comfortably: $228,966
Florida
- Annual income needed to live comfortably: $209,082
Georgia
- Annual income needed to live comfortably: $212,826
Hawaii
- Annual income needed to live comfortably: $294,611
Idaho
- Annual income needed to live comfortably: $211,245
Illinois
- Annual income needed to live comfortably: $231,962
Indiana
- Annual income needed to live comfortably: $206,003
Iowa
- Annual income needed to live comfortably: $211,411
Kansas
- Annual income needed to live comfortably: $196,768
Kentucky
- Annual income needed to live comfortably: $190,112
Louisiana
- Annual income needed to live comfortably: $189,613
Maine
- Annual income needed to live comfortably: $229,549
Maryland
- Annual income needed to live comfortably: $239,450
Massachusetts
- Annual income needed to live comfortably: $301,184
Michigan
- Annual income needed to live comfortably: $214,490
Minnesota
- Annual income needed to live comfortably: $244,774
Mississippi
- Annual income needed to live comfortably: $177,798
Missouri
- Annual income needed to live comfortably: $202,259
Montana
- Annual income needed to live comfortably: $211,411
Nebraska
- Annual income needed to live comfortably: $213,075
Nevada
- Annual income needed to live comfortably: $237,286
New Hampshire
- Annual income needed to live comfortably: $244,109
New Jersey
- Annual income needed to live comfortably: $251,181
New Mexico
- Annual income needed to live comfortably: $203,923
New York
- Annual income needed to live comfortably: $278,970
North Carolina
- Annual income needed to live comfortably: $209,331
North Dakota
- Annual income needed to live comfortably: $202,176
Ohio
- Annual income needed to live comfortably: $209,331
Oklahoma
- Annual income needed to live comfortably: $194,106
Oregon
- Annual income needed to live comfortably: $257,338
Pennsylvania
- Annual income needed to live comfortably: $230,464
Rhode Island
- Annual income needed to live comfortably: $249,267
South Carolina
- Annual income needed to live comfortably: $200,762
South Dakota
- Annual income needed to live comfortably: $192,608
Tennessee
- Annual income needed to live comfortably: $195,770
Texas
- Annual income needed to live comfortably: $201,344
Utah
- Annual income needed to live comfortably: $218,483
Vermont
- Annual income needed to live comfortably: $248,352
Virginia
- Annual income needed to live comfortably: $235,206
Washington
- Annual income needed to live comfortably: $257,421
West Virginia
- Annual income needed to live comfortably: $189,363
Wisconsin
- Annual income needed to live comfortably: $225,056