The American Middle Class Is Poorer Than You Think
Most Americans don’t understand how low the average income is. Many workers earn less than $50,000 a year. This figure is far below what many might expect. Only about 1% of people are millionaires. Wealth is more concentrated than most realize. The gap between the rich and everyone else is widening. Many Americans live paycheck to paycheck, making it hard to save. Understanding these facts highlights an important economic reality.
When looking at the numbers below keep these numbers in mind…
Full Time Employment Is 2,080 Hours A Year
$7.25 x 2,080 =$15,080
Take Home Pay
Massachusetts: $13,402
West Virgina: $13,558
$15.00 x 2080 = $31,200
Take Home Pay
Massachusetts: $25,813
West Virgina: $26,231
$25.00 x 2080 = $52,000
Take Home Pay
Massachusetts: $41,486
West Virgina: $42,123
$40.00 x 2080 = $83,200
Take Home Pay
Massachusetts: $62,851
West Virgina: $63,552
If you’re thinking of living on your own, you’ll need to make about $45,000 per year in most states just to get by.
That’s roughly the median income needed to cover basic expenses, according to a new analysis by SmartAsset, which looked at estimates for housing, transportation, health care, taxes and other common expenses, as tracked by the MIT Living Wage calculator.
However, the amount of money you need to make ends meet can vary significantly depending on where you live. That is largely due to housing prices and taxes, which vary the most out of the basic expenses examined. In states such as Massachusetts, California and Hawaii, estimated housing costs are more than double that of states with the lowest basic cost of living.
You would need to earn about $28 per hour over a 40-hour work week to bring in the $58,009 annual income required to get by in Massachusetts. In contrast, you would only need to earn about $19 per hour in West Virginia, which has the lowest annual income needed to get by at $39,386.
However, in many states, the minimum wage is still only $7.25 per hour. That is just about a third of what people need to get by in most states. To cover basic expenses, minimum wage workers are often reliant on tips, or are forced to cut costs in other ways. Even in states where the minimum wage is higher than $7.25, it is often still not commensurate with the estimated living wage.
The salary a single person needs to make ends meet in every U.S. state
Alabama
-
Annual living wage for a single person: $41,911
Colorado
-
Annual living wage for a single person: $51,644
Hawaii
-
Annual living wage for a single person: $56,841
Kentucky
-
Annual living wage for a single person: $40,355
Michigan
-
Annual living wage for a single person: $42,187
Nebraska
-
Annual living wage for a single person: $41,849
New York
-
Annual living wage for a single person: $55,878
Pennsylvania
-
Annual living wage for a single person: $45,661
Tennessee
-
Annual living wage for a single person: $43,196
Washington
-
Annual living wage for a single person: $53,242
Alaska
-
Annual living wage for a single person: $48,375
Connecticut
-
Annual living wage for a single person: $50,194
Illinois
-
Annual living wage for a single person: $47,559
Louisiana
-
Annual living wage for a single person: $41,233
Minnesota
-
Annual living wage for a single person: $44,626
Nevada
-
Annual living wage for a single person: $46,727
North Dakota
-
Annual living wage for a single person: $40,262
Rhode Island
-
Annual living wage for a single person: $50,418
Texas
-
Annual living wage for a single person: $43,508
West Virginia
-
Annual living wage for a single person: $39,386
Arizona
-
Annual living wage for a single person: $48,677
Delaware
-
Annual living wage for a single person: $47,064
Indiana
-
Annual living wage for a single person: $42,510
Maine
-
Annual living wage for a single person: $45,844
Mississippi
-
Annual living wage for a single person: $41,361
New Hampshire
-
Annual living wage for a single person: $49,045
Ohio
-
Annual living wage for a single person: $40,359
South Carolina
-
Annual living wage for a single person: $44,152
Utah
-
Annual living wage for a single person: $46,850
Wisconsin
-
Annual living wage for a single person: $42,062
Arkansas
-
Annual living wage for a single person: $39,724
Florida
-
Annual living wage for a single person: $46,645
Iowa
-
Annual living wage for a single person: $41,678
Maryland
-
Annual living wage for a single person: $51,460
Missouri
-
Annual living wage for a single person: $42,024
New Jersey
-
Annual living wage for a single person: $51,504
Oklahoma
-
Annual living wage for a single person: $40,211
North Carolina
-
Annual living wage for a single person: $44,848
Vermont
-
Annual living wage for a single person: $47,892
Wyoming
-
Annual living wage for a single person: $43,823
California
-
Annual living wage for a single person: $56,825
Georgia
-
Annual living wage for a single person: $48,448
Kansas
-
Annual living wage for a single person: $42,337
Massachusetts
-
Annual living wage for a single person: $58,009
Montana
-
Annual living wage for a single person: $42,374
New Mexico
-
Annual living wage for a single person: $41,807
Oregon
-
Annual living wage for a single person: $50,553
South Dakota
-
Annual living wage for a single person: $40,718
Virginia
-
Annual living wage for a single person: $49,973
Idaho
-
Annual living wage for a single person: $44,366
The median income for US households in 2023 was $80,610, meaning that half of households reported less and half reported more.
Top 1%
To be in the top 1% of earners in the US, you’d need to earn nearly $788,000
Top 5%
To be in the top 5% of earners in the US, you’d need to earn at least $290,000
Top 20%
To be in the top 20% of income earners in the US, you’d need to earn an average of $130,545 per year.
$100,000+
Only 18% of individual Americans make more than $100,000 a year.
$19 a hour
You can Survive in West Virginia as a single person.
$38 an hour
Is what a single person needs to earn to live comfortably in West Virginia.
$1,820.62 A week
What a family of 4 needs to make end meat in West Virginia… That is $46 an hour for 1 person.
$3,641.60 A Week
The amounted needed for a family of 4 to live comfortably in West Virginia
Cost of Living For A Single Person: All 50 States
Alabama
- Annual living wage for a single person: $41,911
Alaska
- Annual living wage for a single person: $48,375
Arizona
- Annual living wage for a single person: $48,677
Arkansas
- Annual living wage for a single person: $39,724
California
- Annual living wage for a single person: $56,825
Colorado
- Annual living wage for a single person: $51,644
Connecticut
- Annual living wage for a single person: $50,194
Delaware
- Annual living wage for a single person: $47,064
Florida
- Annual living wage for a single person: $46,645
Georgia
- Annual living wage for a single person: $48,448
Hawaii
- Annual living wage for a single person: $56,841
Idaho
- Annual living wage for a single person: $44,366
Illinois
- Annual living wage for a single person: $47,559
Indiana
- Annual living wage for a single person: $42,510
Iowa
- Annual living wage for a single person: $41,678
Kansas
- Annual living wage for a single person: $42,337
Kentucky
- Annual living wage for a single person: $40,355
Louisiana
- Annual living wage for a single person: $41,233
Maine
- Annual living wage for a single person: $45,844
Maryland
- Annual living wage for a single person: $51,460
Massachusetts
- Annual living wage for a single person: $58,009
Michigan
- Annual living wage for a single person: $42,187
Minnesota
- Annual living wage for a single person: $44,626
Mississippi
- Annual living wage for a single person: $41,361
Missouri
- Annual living wage for a single person: $42,024
Montana
- Annual living wage for a single person: $42,374
Nebraska
- Annual living wage for a single person: $41,849
Nevada
- Annual living wage for a single person: $46,727
New Hampshire
- Annual living wage for a single person: $49,045
New Jersey
- Annual living wage for a single person: $51,504
New Mexico
- Annual living wage for a single person: $41,807
New York
- Annual living wage for a single person: $55,878
North Carolina
- Annual living wage for a single person: $44,848
North Dakota
- Annual living wage for a single person: $40,262
Ohio
- Annual living wage for a single person: $40,359
Oklahoma
- Annual living wage for a single person: $40,211
Oregon
- Annual living wage for a single person: $50,553
Pennsylvania
- Annual living wage for a single person: $45,661
Rhode Island
- Annual living wage for a single person: $50,418
South Carolina
- Annual living wage for a single person: $44,152
South Dakota
- Annual living wage for a single person: $40,718
Tennessee
- Annual living wage for a single person: $43,196
Texas
- Annual living wage for a single person: $43,508
Utah
- Annual living wage for a single person: $46,850
Vermont
- Annual living wage for a single person: $47,892
Virginia
- Annual living wage for a single person: $49,973
Washington
- Annual living wage for a single person: $53,242
West Virginia
- Annual living wage for a single person: $39,386
Wisconsin
- Annual living wage for a single person: $42,062
Wyoming
- Annual living wage for a single person: $43,823
Alabama
- Annual income needed to live comfortably: $83,824
Alaska
- Annual income needed to live comfortably: $96,762
Arizona
- Annual income needed to live comfortably: $97,344
Arkansas
- Annual income needed to live comfortably: $79,456
California
- Annual income needed to live comfortably: $113,651
Colorado
- Annual income needed to live comfortably: $103,292
Connecticut
- Annual income needed to live comfortably: $100,381
Delaware
- Annual income needed to live comfortably: $94,141
Florida
- Annual income needed to live comfortably: $93,309
Georgia
- Annual income needed to live comfortably: $96,886
Hawaii
- Annual income needed to live comfortably: $113,693
Idaho
- Annual income needed to live comfortably: $88,733
Illinois
- Annual income needed to live comfortably: $95,098
Indiana
- Annual income needed to live comfortably: $85,030
Iowa
- Annual income needed to live comfortably: $83,366
Kansas
- Annual income needed to live comfortably: $84,656
Kentucky
- Annual income needed to live comfortably: $80,704
Louisiana
- Annual income needed to live comfortably: $82,451
Maine
- Annual income needed to live comfortably: $91,686
Maryland
- Annual income needed to live comfortably: $102,918
Massachusetts
- Annual income needed to live comfortably: $116,022
Michigan
- Annual income needed to live comfortably: $84,365
Minnesota
- Annual income needed to live comfortably: $89,232
Mississippi
- Annual income needed to live comfortably: $82,742
Missouri
- Annual income needed to live comfortably: $84,032
Montana
- Annual income needed to live comfortably: $84,739
Nebraska
- Annual income needed to live comfortably: $83,699
Nevada
- Annual income needed to live comfortably: $93,434
New Hampshire
- Annual income needed to live comfortably: $98,094
New Jersey
- Annual income needed to live comfortably: $103,002
New Mexico
- Annual income needed to live comfortably: $83,616
New York
- Annual income needed to live comfortably: $111,738
North Carolina
- Annual income needed to live comfortably: $89,690
North Dakota
- Annual income needed to live comfortably: $52,807
Ohio
- Annual income needed to live comfortably: $80,704
Oklahoma
- Annual income needed to live comfortably: $80,413
Oregon
- Annual income needed to live comfortably: $101,088
Pennsylvania
- Annual income needed to live comfortably: $91,312
Rhode Island
- Annual income needed to live comfortably: $100,838
South Carolina
- Annual income needed to live comfortably: $88,317
South Dakota
- Annual income needed to live comfortably: $81,453
Tennessee
- Annual income needed to live comfortably: $86,403
Texas
- Annual income needed to live comfortably: $87,027
Utah
- Annual income needed to live comfortably: $93,683
Vermont
- Annual income needed to live comfortably: $95,763
Virginia
- Annual income needed to live comfortably: $99,965
Washington
- Annual income needed to live comfortably: $106,496
West Virginia
- Annual income needed to live comfortably: $78,790
Wisconsin
- Annual income needed to live comfortably: $84,115
Wyoming
- Annual income needed to live comfortably: $87,651
Cost Of Living For A Family Of Four: All 50 States
Alabama
- Annual income needed for a family of four: $96,805
Alaska
- Annual income needed for a family of four: $121,295
Arizona
- Annual income needed for a family of four: $115,314
Arkansas
- Annual income needed for a family of four: $90,394
California
- Annual income needed for a family of four: $138,357
Colorado
- Annual income needed for a family of four: $132,486
Connecticut
- Annual income needed for a family of four: $139,924
Delaware
- Annual income needed for a family of four: $114,467
Florida
- Annual income needed for a family of four: $104,524
Georgia
- Annual income needed for a family of four: $106,414
Hawaii
- Annual income needed for a family of four: $147,319
Idaho
- Annual income needed for a family of four: $105,611
Illinois
- Annual income needed for a family of four: $115,961
Indiana
- Annual income needed for a family of four: $102,985
Iowa
- Annual income needed for a family of four: $105,698
Kansas
- Annual income needed for a family of four: $98,369
Kentucky
- Annual income needed for a family of four: $95,043
Louisiana
- Annual income needed for a family of four: $94,791
Maine
- Annual income needed for a family of four: $114,784
Maryland
- Annual income needed for a family of four: $119,720
Massachusetts
- Annual income needed for a family of four: $150,578
Michigan
- Annual income needed for a family of four: $107,249
Minnesota
- Annual income needed for a family of four: $122,387
Mississippi
- Annual income needed for a family of four: $88,895
Missouri
- Annual income needed for a family of four: $101,142
Montana
- Annual income needed for a family of four: $105,689
Nebraska
- Annual income needed for a family of four: $106,557
Nevada
- Annual income needed for a family of four: $118,649
New Hampshire
- Annual income needed for a family of four: $122,072
New Jersey
- Annual income needed for a family of four: $125,609
New Mexico
- Annual income needed for a family of four: $101,959
New York
- Annual income needed for a family of four: $139,504
North Carolina
- Annual income needed for a family of four: $104,684
North Dakota
- Annual income needed for a family of four: $101,085
Ohio
- Annual income needed for a family of four: $104,658
Oklahoma
- Annual income needed for a family of four: $97,073
Oregon
- Annual income needed for a family of four: $128,652
Pennsylvania
- Annual income needed for a family of four: $115,218
Rhode Island
- Annual income needed for a family of four: $124,649
South Carolina
- Annual income needed for a family of four: $100,368
South Dakota
- Annual income needed for a family of four: $96,286
Tennessee
- Annual income needed for a family of four: $97,867
Texas
- Annual income needed for a family of four: $100,689
Utah
- Annual income needed for a family of four: $109,231
Vermont
- Annual income needed for a family of four: $124,190
Virginia
- Annual income needed for a family of four: $117,618
Washington
- Annual income needed for a family of four: $128,730
West Virginia
- Annual income needed for a family of four: $94,672
Wisconsin
- Annual income needed for a family of four: $112,529
Wyoming
- Annual income needed for a family of four: $101,693
Alabama
- Annual income needed to live comfortably: $193,606
Alaska
- Annual income needed to live comfortably: $242,611
Arizona
- Annual income needed to live comfortably: $230,630
Arkansas
- Annual income needed to live comfortably: $180,794
California
- Annual income needed to live comfortably: $276,723
Colorado
- Annual income needed to live comfortably: $264,992
Connecticut
- Annual income needed to live comfortably: $279,885
Delaware
- Annual income needed to live comfortably: $228,966
Florida
- Annual income needed to live comfortably: $209,082
Georgia
- Annual income needed to live comfortably: $212,826
Hawaii
- Annual income needed to live comfortably: $294,611
Idaho
- Annual income needed to live comfortably: $211,245
Illinois
- Annual income needed to live comfortably: $231,962
Indiana
- Annual income needed to live comfortably: $206,003
Iowa
- Annual income needed to live comfortably: $211,411
Kansas
- Annual income needed to live comfortably: $196,768
Kentucky
- Annual income needed to live comfortably: $190,112
Louisiana
- Annual income needed to live comfortably: $189,613
Maine
- Annual income needed to live comfortably: $229,549
Maryland
- Annual income needed to live comfortably: $239,450
Massachusetts
- Annual income needed to live comfortably: $301,184
Michigan
- Annual income needed to live comfortably: $214,490
Minnesota
- Annual income needed to live comfortably: $244,774
Mississippi
- Annual income needed to live comfortably: $177,798
Missouri
- Annual income needed to live comfortably: $202,259
Montana
- Annual income needed to live comfortably: $211,411
Nebraska
- Annual income needed to live comfortably: $213,075
Nevada
- Annual income needed to live comfortably: $237,286
New Hampshire
- Annual income needed to live comfortably: $244,109
New Jersey
- Annual income needed to live comfortably: $251,181
New Mexico
- Annual income needed to live comfortably: $203,923
New York
- Annual income needed to live comfortably: $278,970
North Carolina
- Annual income needed to live comfortably: $209,331
North Dakota
- Annual income needed to live comfortably: $202,176
Ohio
- Annual income needed to live comfortably: $209,331
Oklahoma
- Annual income needed to live comfortably: $194,106
Oregon
- Annual income needed to live comfortably: $257,338
Pennsylvania
- Annual income needed to live comfortably: $230,464
Rhode Island
- Annual income needed to live comfortably: $249,267
South Carolina
- Annual income needed to live comfortably: $200,762
South Dakota
- Annual income needed to live comfortably: $192,608
Tennessee
- Annual income needed to live comfortably: $195,770
Texas
- Annual income needed to live comfortably: $201,344
Utah
- Annual income needed to live comfortably: $218,483
Vermont
- Annual income needed to live comfortably: $248,352
Virginia
- Annual income needed to live comfortably: $235,206
Washington
- Annual income needed to live comfortably: $257,421
West Virginia
- Annual income needed to live comfortably: $189,363
Wisconsin
- Annual income needed to live comfortably: $225,056
Wyoming
- Annual income needed to live comfortably: $203,424
15 U.S. states where you can retire comfortably on less than $65,000 a year Published Tue, Oct 15 20242:58 PM EDT
Alabama
- Total expenditures: $50,980
- 20% comfort buffer: $10,196
- Cost of a comfortable retirement annually: $61,176
Arkansas
- Total expenditures: $51,211
- 20% comfort buffer: $10,242
- Cost of a comfortable retirement annually: $61,454
Georgia
- Total expenditures: $52,832
- 20% comfort buffer: $10,566
- Cost of a comfortable retirement annually: $63,398
Illinois
- Total expenditures: $53,989
- 20% comfort buffer: $10,798
- Cost of a comfortable retirement annually: $64,787
Iowa
- Total expenditures: $52,137
- 20% comfort buffer: $10,427
- Cost of a comfortable retirement annually: $62,565
Kansas
- Total expenditures: $50,517
- 20% comfort buffer: $10,103
- Cost of a comfortable retirement annually: $60,620
Kentucky
- Total expenditures: $53,584
- 20% comfort buffer: $10,717
- Cost of a comfortable retirement annually: $64,301
Louisiana
- Total expenditures: $53,295
- 20% comfort buffer: $10,659
- Cost of a comfortable retirement annually: $63,954
Mississippi
- Total expenditures: $51,096
- 20% comfort buffer: $10,219
- Cost of a comfortable retirement annually: $61,315
Missouri
- Total expenditures: $51,211
- 20% comfort buffer: $10,242
- Cost of a comfortable retirement annually: $61,454
Nebraska
- Total expenditures: $54,047
- 20% comfort buffer: $10,809
- Cost of a comfortable retirement annually: $64,856
New Mexico
- Total expenditures: $54,163
- 20% comfort buffer: $10,833
- Cost of a comfortable retirement annually: $64,995
Oklahoma
- Total expenditures: $49,996
- 20% comfort buffer: $9,999
- Cost of a comfortable retirement annually: $59,995
South Dakota
- Total expenditures: $54,047
- 20% comfort buffer: $10,809
- Cost of a comfortable retirement annually: $64,856
Tennessee
- Total expenditures: $52,253
- 20% comfort buffer: $10,451
- Cost of a comfortable retirement annually: $62,704
Texas
- Total expenditures: $53,468
- 20% comfort buffer: $10,694
- Cost of a comfortable retirement annually: $64,162