What’s the living wage a family of four needs in every US state? (2024)

FAQs

How much money does a family of 4 need to live comfortably in us? ›

The study revealed that in the most expensive states, families need nearly $300,000 to simply live 'comfortably. ' The least expensive state requires about half that salary - still over $100,000.

The average U.S. household income in 2022 was $105,555, while the median U.S. household income was $74,580. Adjusting for inflation, median household income dropped 2.2% from 2021 to 2022. Adjusting for inflation, the median household income has declined every year since 2019, when it was $78,250.

According to research from MIT, the living wage in the United States was $25.02 per hour ($104,077.70 per year) before taxes per year in 2022 for a family of four (two working adults with two children). That's an increase from $24.16 ($100,498.60 per year) in 2021.

Again, living expenses vary significantly by location, but we can use some average numbers. The average monthly living expenses for a single person in the USA are $3,189, which is $38,266 per year. The average cost for a family of four is $7,095 per month, which is $85,139 per year.

The U.S. Department of Health and Human Services uses the Census Bureau threshold to determine who is eligible for certain government assistance programs, like SNAP (food stamps). Under their guidelines, a family of four is considered impoverished if they earn $30,000 or less per year.

While people have different qualifications and different ideas of what constitutes a good salary, most would consider $75,000 per year to be good pay.

With the annual inflation rate for 2023 at 3.4% for the year — up from 3.1% previously — salaries aren't keeping up. A Smart Asset report based on MIT's Living Wage data found that the average salary required to live comfortably in the U.S. is $68,499 after taxes.

Mississippi: According to World Population Review, in 2023, Mississippi holds the title of the cheapest state to live in the United States. Its cost of living index is 85, and overall costs in the state are 17% lower than the national average.

Is $25 an hour a livable wage? ›

An analysis of the living wage (as calculated in December 2022 and reflecting a compensation being offered to an individual in 2023), compiling geographically specific expenditure data for food, childcare, health care, housing, transportation, and other necessities, finds that: The living wage in the United States is ...

The average monthly expenses for a single person will depend quite a bit on where you live, and if you're living alone for the first time, you might be surprised that most things cost more, not just your rent. The national average expenses for a single person living alone are around $3,500 per month.

Average Expenses for a Family of Four

According to the most recent data, U.S. households that consist of four people spent an average of $8,640 per month in 2022. In 2021, the average four-person household spent $7749 per month. This works out to average annual expenditures of $101,514 in 2022, up from $92,989 in 2021.

A family making that much would be considered above middle class nationally, according to the Pew Research Center's definition of the term: a household earning between two-thirds and double their area's median household income.

The rule of thumb for rent is that many people can afford a $1,250 apartment with a $50K salary, but it can't go far above that. If you specifically want to know, “What house can I afford on $50K a year?” it depends on your down payment, but the price generally would be somewhere around $200K.

Living cost in USA for international students can be calculated roughly based on the city you reside in. The estimated living cost for the US is around $10,000 to $18,000 per year, which averages around $1000 to $1500 per month.