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.