A study released Monday by personal finance website SmartAsset found that a single adult requires an annual income between $90,000 and $100,000 to "live comfortably" in most U.S. states. The analysis applied the 50/30/20 budgeting rule, which allocates 50% of income to necessities, 30% to optional spending, and 20% to savings, debt repayment, or investments.
The report utilized data from the MIT Living Wage Calculator to estimate the cost of necessities for various family sizes. According to the findings, the required income for sustainable comfort varies significantly by geography and household composition. While inflation slowed last month, the study noted that rising costs have previously impacted middle-class incomes across the country.
Hawaii ranked as the most expensive state for a single adult, requiring a salary of $129,002, a 3.6% increase from the previous year. For a family of four, Massachusetts was identified as the most expensive state, necessitating an income of nearly $330,000. Conversely, West Virginia was the most affordable for single adults at $81,200, while Mississippi required the lowest salary for a family of four at approximately $188,000.
The concrete day-to-day change for individuals is reflected in how much of their paycheck is consumed by mandatory bills versus long-term financial security. Residents in 44 states would notice that an income below $200,000 for a four-person household may preclude them from following the 50/30/20 rule, potentially forcing a reduction in the 20% portion typically reserved for retirement savings or debt reduction. These financial pressures coincide with a 0.6% dip in retail sales reported by the Commerce Department for July, the largest decline since May 2025.
The findings establish a benchmark for wage expectations and personal budgeting in an environment of shifting prices. While six states, including Tennessee, saw a decrease in the required comfort wage, others like Montana and New York saw requirements rise by more than 8% year-over-year. As government tax refunds fade and unemployment applications rise, these figures indicate the specific income levels necessary to maintain financial stability without depleting savings. The report does not state when these requirements might next be adjusted.