A six-figure salary no longer guarantees comfort in half of the United States
SmartAsset analysis shows the annual income required to meet basic needs and save for retirement has risen in 44 states, with the cost for a family of four reaching nearly $330,000 in Massachusetts.
By Lucia Orlov ·
A six-figure salary no longer guarantees financial comfort in half of the country.
According to a new analysis by SmartAsset, a single adult now needs at least $80,000 a year to live comfortably in every state. In nearly half of the states, the threshold exceeds $100,000. For a family of four, the required income reaches as high as $329,000.
The study relied on data from the MIT Living Wage Calculator, which was last updated in February 2026. Researchers adjusted the base living wage figures using the 50/30/20 budgeting rule. This framework allocates 50% of income to necessities such as housing and utilities, 30% to discretionary spending, and 20% to savings for retirement and emergencies. The resulting estimate represents the annual, pre-tax income needed to cover these categories.
Massachusetts and Hawaii emerged as the most expensive states for residents. In Massachusetts, a family of four requires an income of $329,555. Hawaii ranks as the most expensive state for single adults, who need $129,002. At the other end of the spectrum, Mississippi is the least expensive state for a family of four, requiring $187,533. West Virginia is the least expensive state for single adults, with a required income of $81,245.
Montana recorded the largest increase in the income needed to live comfortably. For a single adult, that threshold rose by 8.6% from 2025. New York followed with an 8.4% increase, requiring $124,342 for a single adult. Maine saw a 6.5% increase, and California saw a 6.1% increase, with single adults there needing $126,797.
Most states experienced rising costs. In 40 states, a family of two working adults and two children needs at least $200,000 a year to live comfortably. Only six states saw a decline in the required income since 2025. Those states are Tennessee, Maryland, Louisiana, North Carolina, Mississippi, and Texas. In each of these locations, a single adult needs less income in 2026 than they did in 2025. Tennessee had the largest drop, with the requirement falling by 1.7% to $89,898.
The data indicates that earning a salary above $100,000 is now a baseline requirement for many workers to maintain their standard of living. The analysis covers all 50 states and distinguishes between households with children and single adults. The figures account for pre-tax income necessary to meet the 50/30/20 budget criteria. SmartAsset produced the story, which was reviewed and distributed by Stacker.
Source: WBTV
