In 2025, a six-figure income will be necessary for raising a family of four in 26 states across America. This means that in more than half of the country, an annual income of $100,000 or more will be required to effectively budget for and comfortably support a family.
A recent study conducted by GOBankingRates analyzed the annual living expenses for a family of four in different states, using data from the 2023 Consumer Expenditure Survey and the Bureau of Labor Statistics for a married couple with children. The study defined a “living wage” as the income needed to cover 50% for necessities, 30% for discretionary spending, and 20% for savings. By following the 50-30-20 budget rule, the total annual expenditure on necessities was doubled to determine the living wage for a family of four in each state.
Listed below are the states ranked from lowest to highest earnings, along with the corresponding living wage required for families of four:
1. West Virginia
– Living wage for a family of four: $82,338
– Annual cost of housing: $13,454
– Annual cost of groceries: $5,731
– Annual cost of healthcare: $7,465
2. Mississippi
– Living wage for a family of four: $87,564
– Annual cost of housing: $15,846
– Annual cost of groceries: $6,750
– Annual cost of healthcare: $7,373
3. Alabama
– Living wage for a family of four: $87,607
– Annual cost of housing: $15,670
– Annual cost of groceries: $6,675
– Annual cost of healthcare: $6,949
4. Kansas
– Living wage for a family of four: $87,944
– Annual cost of housing: $15,517
– Annual cost of groceries: $6,610
– Annual cost of healthcare: $7,141
5. Arkansas
– Living wage for a family of four: $88,312
– Annual cost of housing: $16,504
– Annual cost of groceries: $7,030
– Annual cost of healthcare: $6,617
6. Oklahoma
– Living wage for a family of four: $90,659
– Annual cost of housing: $16,394
– Annual cost of groceries: $6,984
– Annual cost of healthcare: $7,658
7. Iowa
– Living wage for a family of four: $91,667
– Annual cost of housing: $16,548
– Annual cost of groceries: $7,049
– Annual cost of healthcare: $7,458
8. Missouri
– Living wage for a family of four: $91,669
– Annual cost of housing: $17,250
– Annual cost of groceries: $7,348
– Annual
Nebraska:
– Living wage for a family of four: $94,102
– Annual cost of housing: $17,448
– Annual cost of groceries: $7,432
– Annual cost of healthcare: $7,820
Georgia:
– Living wage for a family of four: $94,682
– Annual cost of housing: $17,382
– Annual cost of groceries: $7,404
– Annual cost of healthcare: $7,550
North Dakota:
– Living wage for a family of four: $94,752
– Annual cost of housing: $17,514
– Annual cost of groceries: $7,461
– Annual cost of healthcare: $8,152
Louisiana:
– Living wage for a family of four: $95,480
– Annual cost of housing: $18,523
– Annual cost of groceries: $7,891
– Annual cost of healthcare: $7,342
Texas:
– Living wage for a family of four: $95,763
– Annual cost of housing: $17,843
– Annual cost of groceries: $7,601
– Annual cost of healthcare: $7,319
New Mexico:
– Living wage for a family of four: $96,130
– Annual cost of housing: $18,633
– Annual cost of groceries: $7,937
– Annual cost of healthcare: $8,105
Minnesota:
– Living wage for a family of four: $96,640
– Annual cost of housing: $17,623
– Annual cost of groceries: $7,507
– Annual cost of healthcare: $8,090
Montana:
– Living wage for a family of four: $96,870
– Annual cost of housing: $18,567
– Annual cost of groceries: $7,909
– Annual cost of healthcare: $7,450
South Carolina:
– Living wage for a family of four: $98,082
– Annual cost of housing: $18,962
– Annual cost of groceries: $8,078
– Annual cost of healthcare: $7,203
Pennsylvania:
– Living wage for a family of four: $98,427
– Annual cost of housing: $18,326
– Annual cost of groceries: $7,806
– Annual cost of healthcare: $7,072
Maryland:
– Living wage for a family of four: $98,585
– Annual cost of housing: $18,040
– Annual cost of groceries: $7,685
– Annual cost of healthcare: $7,110
Ohio:
– Living wage for a family of four: $99,453
– Annual cost of housing: $19,226
– Annual cost of groceries: $8,190
– Annual cost of healthcare: $7,488
South Dakota:
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Wisconsin – Family of four living wage: $107,324. Annual housing cost: $21,618. Annual groceries cost: $9,209. Annual healthcare cost: $8,128.
Idaho – Family of four living wage: $107,412. Annual housing cost: $21,749. Annual groceries cost: $9,265. Annual healthcare cost: $7,820.
Virginia – Family of four living wage: $111,303. Annual housing cost: $22,781. Annual groceries cost: $9,704. Annual healthcare cost: $8,198.
Florida – Family of four living wage: $112,401. Annual housing cost: $23,637. Annual groceries cost: $10,069. Annual healthcare cost: $7,350.
Colorado – Family of four living wage: $112,828. Annual housing cost: $23,615. Annual groceries cost: $10,060. Annual healthcare cost: $7,982.
Nevada – Family of four living wage: $112,965. Annual housing cost: $23,439. Annual groceries cost: $9,985. Annual healthcare cost: $6,486.
Rhode Island – Family of four living wage: $123,298. Annual housing cost: $25,107. Annual groceries cost: $10,695. Annual healthcare cost: $8,260.
New Hampshire – Family of four living wage: $123,863. Annual housing cost: $25,502. Annual groceries cost: $10,864. Annual healthcare cost: $8,506.
Connecticut – Family of four living wage: $126,753. Annual housing cost: $25,722. Annual groceries cost: $10,957. Annual healthcare cost: $8,661.
Utah – Family of four living wage: $128,484. Annual housing cost: $28,465. Annual groceries cost: $12,126. Annual healthcare cost: $6,925.
Washington – Family of four living wage: $131,024. Annual housing cost: $27,807. Annual groceries cost: $11,845. Annual healthcare cost: $8,977.
Arizona – Family of four living wage: $131,102. Annual housing cost: $29,848. Annual groceries cost: $12,715. Annual healthcare cost: $6,918.
Oregon – Family of four living wage: $131,824. Annual housing cost: $28,904. Annual groceries cost: $12,313. Annual healthcare cost: $8,637.
Vermont – Family of four living wage: $131,996. Annual housing cost: $29,211. Annual groceries cost: $12,444. Annual healthcare cost: $8,738.
New Jersey – Family of four living wage: $134,990. Annual housing cost: $30,331. Annual groceries cost: $12
Living wage for a family of four in Massachusetts is $199,671, with an annual cost of housing at $49,600, groceries at $21,129, and healthcare at $10,033. The living wage for a family of four in Hawaii is $258,918, with housing costing $66,412, groceries at $28,290, and healthcare at $9,540. This data was collected using the 2023 Consumer Expenditure Survey for a married couple with children, with costs based on each state’s respective cost-of-living index. The living wage represents the income needed to cover 50% necessities, 30% discretionary spending, and 20% savings, following the 50-30-20 budget rule. Data is current as of Dec. 11, 2024.
