A family of four needs at least $186,618 a year to live comfortably in Mississippi in 2025, the country’s most affordable state, according to a study published on June 4. In Massachusetts, the most expensive state in the U.S., a family of four needs more than $300,000 per year to meet that threshold. “Living comfortably” means having enough income to dedicate 50% to necessary costs, 30% to discretionary wants, and 20% to debt payments and saving, also known as following the 50/30/20 budget.
Costs of living grew by over 4% in Massachusetts from 2024, slightly more than the national average of 3.87%, according to SmartAsset’s analysis. Boston has the highest cost of raising a child in the country, with much of that total cost coming from child care.
Living costs set to rise
Raising a child in Boston costs an estimated $39,221 per year, including $23,800 just for child care. The cost of living for families in other states may not be quite as high as in Massachusetts, but three states—Vermont, New Jersey, and Montana—are on track to rapidly catch up, with double-digit growth rates from 2024, according to SmartAsset’s report. On the flip side, overall costs of living actually shrank from 2024 in six states: Hawaii, New York, Georgia, Delaware, Michigan, and Iowa.
SmartAsset used the Massachusetts Institute of Technology’s Living Wage Calculator to estimate the annual cost of essentials in each state. MIT calculates family living costs for two working adults and two children, covering essentials like housing and food as well as child care. Here’s the income it takes for a family of four to live comfortably in all 50 states in 2025:
Mississippi: $186,618
Massachusetts: Over $300,000
Vermont, New Jersey, Montana: Rapid growth rates in living costs
Hawaii, New York, Georgia, Delaware, Michigan, Iowa: Decrease in living costs
Each of these figures indicates significant variations in the income required to maintain a comfortable living standard, underscoring the importance of financial planning and budgeting for families across different states.