What Income Your Family of Four Actually Needs To Live in 2025: A State-by-State Breakdown

Planning your household budget for 2025? Here’s a sobering reality: in half of America, you’ll need to earn over $100,000 annually to provide a comfortable lifestyle for your family of four. The cost of living for a family of 4 varies dramatically depending on where you settle, ranging from about $82,000 in the most affordable states to nearly $259,000 in the priciest ones.

How Much Does a Family of Four Really Need?

Recent research analyzed spending patterns across all 50 states using 2023 data from the Bureau of Labor Statistics. The study applied the popular 50-30-20 budget framework—allocating 50% of income toward necessities (housing, food, utilities, healthcare, transportation), 30% for discretionary purchases, and 20% for savings. By doubling the necessities portion, researchers calculated the true living wage needed for each state.

The Affordable South and Midwest: Where Your Dollar Stretches Further

The most budget-friendly regions cluster in the South and Midwest. West Virginia tops the list of most affordable states, where a family of four needs approximately $82,338 annually. Housing costs just $13,454 per year, while groceries run $5,731.

Close behind are Mississippi ($87,564), Alabama ($87,607), and Kansas ($87,944). These states offer significantly lower housing expenses—typically in the $15,000-$16,000 range annually—making them attractive for cost-conscious families. Grocery bills hover around $6,600-$7,000 per year in this tier.

The middle-affordable tier includes states like Arkansas ($88,312), Oklahoma ($90,659), Iowa ($91,667), and Missouri ($91,669). Still under $92,000, these regions provide reasonable living costs for a family of four without major financial strain.

The Mid-Range Reality: Most Americans Live Here

Moving up the spectrum, states like Tennessee ($92,179), Kentucky ($93,349), Indiana ($93,544), and Michigan ($93,807) require incomes approaching $94,000. Housing becomes slightly more expensive at $17,000-$18,000 annually, while healthcare costs creep higher.

Georgia ($94,682), Texas ($95,763), and Minnesota ($96,640) fall into the $95,000-$97,000 range. These growing regions show moderate housing inflation, with annual housing costs between $17,600-$18,000 for families.

The transition zone includes Pennsylvania ($98,427), Maryland ($98,585), and Ohio ($99,453)—states where the income requirement for a family of four edges toward six figures but hasn’t quite crossed the threshold.

The High-Cost Transition: Breaking the Six-Figure Barrier

South Dakota ($100,000) marks the precise threshold where a family of four needs exactly six figures. Beyond this point, Illinois ($100,332) and Wyoming ($100,750) require sustained six-figure incomes, with housing costs reaching $19,000-$19,700 annually.

North Carolina ($104,582) and Delaware ($107,042) enter definitively six-figure territory, where the cost of living for a family of 4 becomes substantially higher. Housing expenses jump to $20,000-$21,000 per year.

Premium Living Zones: The Expensive Coast

The Northeast and Western states demand significantly higher incomes. Virginia ($111,303), Florida ($112,401), and Colorado ($112,828) require families to earn $111,000-$113,000. Housing costs exceed $23,500 annually in these desirable regions.

Rhode Island ($123,298) and New Hampshire ($123,863) push past $123,000—over 50% more than affordable Southern states. Housing becomes truly expensive at $25,000-$25,500 per year.

Connecticut ($126,753) and Utah ($128,484) require nearly $130,000 for a family of four, with Utah’s housing particularly steep at $28,465 annually.

The Ultra-Expensive Markets: West Coast Realities

Western states show the highest living costs. Washington ($131,024), Arizona ($131,102), Oregon ($131,824), and Vermont ($131,996) all require families to earn over $131,000.

New Jersey ($134,990) and Maine ($135,943) approach $136,000, with housing dominating budgets at nearly $30,000 per year.

Alaska ($136,990) requires similar six-figure-plus incomes, though housing costs ($25,854) are slightly lower than continental Western states, offset by higher grocery expenses ($11,013) and healthcare ($11,290).

The Extreme Cases: East and West Coasts

The most expensive markets demonstrate how dramatically the cost of living for a family of 4 escalates:

• New York demands $155,738 annually, with housing costs reaching $37,354—driven by New York City’s dominance
• California requires $188,269, with housing consuming $45,891 per year
• Massachusetts needs $199,671, the second-highest in the nation
• Hawaii tops all states at $258,918, where housing alone costs $66,412 annually and groceries reach $28,290

Key Takeaways for Your Family Budget

The gap between the cheapest and most expensive states is staggering—a family of four needs more than three times the income in Hawaii compared to West Virginia. More than half of American states now require six-figure household incomes to maintain a comfortable budget with proper savings.

The cost of living for a family of 4 breaks down most heavily into housing and food costs. In affordable regions, these two categories consume less of the budget, leaving room for discretionary spending and savings. In expensive markets, housing alone can consume a quarter of annual income.

Understanding your state’s true living wage helps families make informed decisions about location, career moves, and long-term financial planning. Whether you’re earning $82,000 or $259,000, aligning your income with your state’s actual cost of living requirements is essential for building financial stability.