As the cost of living continues to rise in the U.S., a family of four needs to earn more than ever to live “comfortably,” according to a new report by GOBankingRates.
Using data from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center’s 2024 Cost of Living data series, GOBankingRates researchers analyzed annual living expenses for a family of four in all 50 states. For the report, a “living wage” is defined as the income required to cover 50% of necessities, 30% for discretionary spending, and 20% placed into savings.
The data tells an expensive story.
Every state’s living wage was at least $82,000 a year. In 26 states, a family of four has to earn at least $100,000 a year to be considered “financially secure,” while in four states, a family of four would need to earn $150,000 to have a living wage: Hawaii ($259K), Massachusetts ($200K), California ($188K), and New York ($155K).
Related: Millions of Americans Are Getting a Pay Bump This Year. Here’s Where.
States once considered “affordable,” according to the report, (Florida, Virginia, Wisconsin, and North Carolina) now require a family of four to earn more than $100,000 to be “comfortable.”
Here are the most and least expensive states with living wages needed for a family of four.
Least expensive:
1. West Virginia
Living wage for a family of four: $82,338Annual cost of housing: $13,454Annual cost of groceries: $5,731Annual cost of healthcare: $7,465
2. Mississippi
Living wage for a family of four: $87,564Annual cost of housing: $15,846Annual cost of groceries: $6,750Annual cost of healthcare: $7,373
3. Alabama
Living wage for a family of four: $87,607Annual cost of housing: $15,670Annual cost of groceries: $6,675Annual cost of healthcare: $6,949
4. Kansas
Living wage for a family of four: $87,944Annual cost of housing: $15,517Annual cost of groceries: $6,610Annual cost of healthcare: $7,141
5. Arkansas
Living wage for a family of four: $88,312Annual cost of housing: $16,504Annual cost of groceries: $7,030Annual cost of healthcare: $6,617
Related: Young People Earning More Than $200,000 a Year Are Fleeing 1 U.S. State — and Flocking to 2 Others
Most expensive:
46. Alaska
Living wage for a family of four: $136,990Annual cost of housing: $25,854Annual cost of groceries: $11,013Annual cost of healthcare: $11,290
47. New York
Living wage for a family of four: $155,738Annual cost of housing: $37,354Annual cost of groceries: $15,912Annual cost of healthcare: $8,607
48. California
Living wage for a family of four: $188,269Annual cost of housing: $45,891Annual cost of groceries: $19,549Annual cost of healthcare: $8,213
49. Massachusetts
Living wage for a family of four: $199,671Annual cost of housing: $49,600Annual cost of groceries: $21,129Annual cost of healthcare: $10,033
50. Hawaii
Living wage for a family of four: $258,918Annual cost of housing: $66,412Annual cost of groceries: $28,290Annual cost of healthcare: $9,540
Read the full report to see where all 50 states rank, click here.
