A family of four requires more than 0,000 annually to live comfortably in this state—it’s not Hawaii or California.
As economic conditions continue to evolve in the United States, a growing number of families are facing increasing challenges in managing the rising cost of living across various states. Recent research highlights that despite a rise in the median household income, which exceeded ,000 in 2023 according to the most recent Census Bureau data, it remains insufficient for many families to live comfortably.
A recent study published by SmartAsset on June 4, 2025, indicates that a family of four living in Mississippi, the most affordable state in the country, requires at least 6,618 annually to maintain a comfortable lifestyle. This figure is reflective of fundamental household budgeting principles, where expenditures are divided into three categories: 50% for needs, 30% for wants, and 20% dedicated to savings and debt repayment, following the widely adopted 50/30/20 rule.
In stark contrast, Massachusetts emerges as the most expensive state to reside in, with annual income needs for a family of four soaring above 0,000. Notably, the cost of living in Massachusetts saw an increase of over 4% from the previous year, marginally outpacing the national average increase of 3.87%. A significant factor in this elevated cost is the expensive upbringing of children in metropolitan areas like Boston, which ranks as the most costly city for raising a child, with associated costs reaching approximately ,221 annually, mainly driven by childcare expenses.
The disparities in living costs across states reflect broader economic trends that are shaping family budgets. While some states like Vermont, New Jersey, and Montana are experiencing rapid increases in living costs—often reaching double-digit growth—others, including Hawaii, New York, and Iowa, have witnessed decreases in living expenses over the same period.
To assess the annual costs necessary for families to sustain themselves across different states, SmartAsset utilized the Massachusetts Institute of Technology (MIT) Living Wage Calculator. This tool provides comprehensive estimates that include expenditure on essentials such as housing, food, and childcare for families composed of two working adults and two children.
The data underscores the necessity for policymakers and communities to address the growing income disparity and rising living costs, which pose substantial challenges for families striving to achieve financial stability. As families navigate these economic pressures, understanding the cost of living across states and planning accordingly becomes vital for maintaining a balanced and sustainable lifestyle. The implications of these findings call for an urgent assessment of wage structures, housing policies, and childcare support systems to foster economic resilience among American families.
