If you want to live alone in Massachusetts, you’ll need to earn nearly $60,000 annually.
According to a recent SmartAsset analysis, this makes it the most expensive state in the US for basic living costs.Â
The figure includes estimates for housing, transportation, health care, taxes, and other common expenses, as tracked by the MIT Living Wage calculator.
Expenses vary widely by state, with housing, taxes, and food being significant factors.
The annual cost for a single-person household ranges from $58,009 in Massachusetts to $39,386 in West Virginia.
Based on a 40-hour work week, this translates to an hourly wage of about $28 in Massachusetts and about $19 in West Virginia, which is needed to cover basic expenses.
Here are the 15 US states with the highest cost of living, based on how much a single person needs to cover basic costs:
1. Massachusetts: $58,009
2. Hawaii: $56,841
3. California: $56,825
4. New York: $55,878
5. Washington: $53,242
6. Colorado: $51,644
7. New Jersey: $51,504
8. Maryland: $51,460
9. Oregon: $50,553
10. Rhode Island: $50,418
11. Connecticut: $50,194
12. Virginia: $49,973
13. New Hampshire: $49,045
14. Arizona: $48,677
15. Georgia: $48,448
Housing is the largest factor in most budgets.
With a median cost of $17,000, housing expenses in the 15 most expensive states are nearly double those in the 15 least expensive states.
Housing costs are higher in states with large cities like California and New York.
These cities attract people due to job opportunities, increasing the demand for homes and increasing prices.
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The cost of living differences between states also relates to food and tax costs, which can vary by as much as $2,000 and $1,500, respectively.
These expense estimates cover necessities, excluding discretionary spending like entertainment or investments.
Unfortunately, the minimum wage doesn’t cover basic expenses in any state, even those with wages far exceeding the federal minimum of $7.25 per hour.
For instance, according to MIT’s data, California’s newly enacted $20 per hour minimum wage for fast food workers doesn’t cover the $27.32 needed for a single full-time worker’s basic expenses.
MIT’s Living Wage calculator uses data from various federal agencies, adjusted for inflation as of December 2023.
