Cheapest for family of 4
Arkansas
Approx $82,555 pre-tax
2026 Edition | Updated October 2026
Cost of Living by State for a Family of Four 2026
For a household of 2 adults plus 2 children, the pre-tax income required to cover the MIT Living Wage basket of housing, childcare, food, healthcare, transportation, and other necessities ranges from roughly $85,000 (Mississippi, West Virginia) to roughly $170,000 (Hawaii). Below: the full 50-state list, anchored to MIT Living Wage and the each state's BEA all-items price parity.
Most expensive for family of 4
California
Approx $105,165 pre-tax
US average
~$95,000
Pre-tax, MIT Living Wage anchor
Full state list
Required pre-tax income, family of four, by state
| State | Required pre-tax income | COL composite | Housing index | Median income |
|---|---|---|---|---|
| Arkansas | $82,555 | 86.9 | 58.2 | $62,106 |
| Mississippi | $82,650 | 87.0 | 56.5 | $59,127 |
| Iowa | $83,410 | 87.8 | 65.3 | $75,501 |
| Oklahoma | $83,410 | 87.8 | 62.8 | $66,148 |
| Louisiana | $83,790 | 88.2 | 63.1 | $60,986 |
| South Dakota | $84,170 | 88.6 | 67.6 | $76,881 |
| Alabama | $84,360 | 88.8 | 61.8 | $66,659 |
| North Dakota | $84,550 | 89.0 | 71.4 | $77,871 |
| West Virginia | $85,025 | 89.5 | 54.2 | $60,798 |
| Kansas | $85,595 | 90.1 | 71.2 | $75,514 |
| Nebraska | $85,595 | 90.1 | 75.2 | $76,376 |
| Kentucky | $85,690 | 90.2 | 64.3 | $64,526 |
| Missouri | $86,260 | 90.8 | 69.9 | $71,589 |
| Tennessee | $87,305 | 91.9 | 79.1 | $71,997 |
| New Mexico | $87,590 | 92.2 | 73.6 | $67,816 |
| Wyoming | $88,065 | 92.7 | 71.1 | $75,532 |
| Ohio | $88,160 | 92.8 | 73.0 | $72,212 |
| Indiana | $88,635 | 93.3 | 73.9 | $71,959 |
| South Carolina | $89,015 | 93.7 | 80.5 | $72,350 |
| Wisconsin | $89,395 | 94.1 | 79.3 | $77,488 |
| North Carolina | $89,585 | 94.3 | 81.4 | $73,958 |
| Montana | $89,870 | 94.6 | 84.6 | $75,340 |
| Idaho | $90,725 | 95.5 | 90.0 | $81,166 |
| Michigan | $91,390 | 96.2 | 82.3 | $72,389 |
| Georgia | $91,485 | 96.3 | 88.7 | $79,991 |
| Maine | $92,245 | 97.1 | 78.9 | $76,442 |
| Texas | $92,245 | 97.1 | 96.5 | $79,721 |
| Pennsylvania | $92,720 | 97.6 | 85.1 | $77,545 |
| Vermont | $93,100 | 98.0 | 86.5 | $82,730 |
| Minnesota | $93,670 | 98.6 | 91.3 | $87,117 |
| Utah | $93,955 | 98.9 | 107.8 | $96,658 |
| Delaware | $94,810 | 99.8 | 102.0 | $87,534 |
| Illinois | $95,000 | 100.0 | 93.9 | $83,211 |
| Nevada | $95,000 | 100.0 | 114.1 | $81,134 |
| Arizona | $95,665 | 100.7 | 106.8 | $81,486 |
| Virginia | $96,045 | 101.1 | 106.8 | $92,090 |
| Rhode Island | $97,185 | 102.3 | 105.6 | $83,504 |
| Alaska | $97,280 | 102.4 | 93.8 | $95,665 |
| Colorado | $97,945 | 103.1 | 127.4 | $97,113 |
| Florida | $98,230 | 103.4 | 122.1 | $77,735 |
| Oregon | $98,230 | 103.4 | 108.6 | $85,220 |
| Connecticut | $98,420 | 103.6 | 117.0 | $96,049 |
| New Hampshire | $98,990 | 104.2 | 114.9 | $99,782 |
| Maryland | $99,750 | 105.0 | 121.1 | $102,905 |
| Massachusetts | $100,510 | 105.8 | 128.1 | $104,828 |
| Washington | $101,650 | 107.0 | 126.0 | $99,389 |
| New York | $102,505 | 107.9 | 122.2 | $85,820 |
| New Jersey | $103,360 | 108.8 | 134.3 | $104,294 |
| Hawaii | $104,500 | 110.0 | 125.3 | $100,745 |
| California | $105,165 | 110.7 | 154.3 | $100,149 |
Sources: MIT Living Wage Calculator 2024 vintage (state-level anchors), BEA Regional Price Parities by state (2024 reference year), US Census ACS 2024 1-year, Child Care Aware of America 2024 childcare cost report, USDA Food Plans (food at home, moderate-cost plan), BLS Consumer Expenditure Survey. Estimates here are anchors; specific county-level required income from the MIT Living Wage Calculator. See methodology.
5 cheapest spotlight
Where a family of four needs the least income
#1
Arkansas
Required pre-tax: $82,555Median home $215,600Arkansas has a BEA housing parity of 58.2, well below the US average. Median 2-bedroom rent of $934/month and median home value of $215,600 keep the housing line of a family-of-four budget manageable. Childcare costs in Arkansas are also among the cheapest in the country (annual infant care typically $7,000-9,000 per child). The trade-off: median household income in Arkansas is $62,106, below the US median, so career options and wage growth can be limited compared with higher-cost states.
#2
Mississippi
Required pre-tax: $82,650Median home $186,500Mississippi has a BEA housing parity of 56.5, well below the US average. Median 2-bedroom rent of $963/month and median home value of $186,500 keep the housing line of a family-of-four budget manageable. Childcare costs in Mississippi are also among the cheapest in the country (annual infant care typically $7,000-9,000 per child). The trade-off: median household income in Mississippi is $59,127, below the US median, so career options and wage growth can be limited compared with higher-cost states.
#3
Iowa
Required pre-tax: $83,410Median home $227,300Iowa has a BEA housing parity of 65.3, well below the US average. Median 2-bedroom rent of $1,003/month and median home value of $227,300 keep the housing line of a family-of-four budget manageable. Childcare costs in Iowa are also among the cheapest in the country (annual infant care typically $7,000-9,000 per child). The trade-off: median household income in Iowa is $75,501, below the US median, so career options and wage growth can be limited compared with higher-cost states.
#4
Oklahoma
Required pre-tax: $83,410Median home $222,100Oklahoma has a BEA housing parity of 62.8, well below the US average. Median 2-bedroom rent of $1,032/month and median home value of $222,100 keep the housing line of a family-of-four budget manageable. Childcare costs in Oklahoma are also among the cheapest in the country (annual infant care typically $7,000-9,000 per child). The trade-off: median household income in Oklahoma is $66,148, below the US median, so career options and wage growth can be limited compared with higher-cost states.
#5
Louisiana
Required pre-tax: $83,790Median home $223,200Louisiana has a BEA housing parity of 63.1, well below the US average. Median 2-bedroom rent of $1,041/month and median home value of $223,200 keep the housing line of a family-of-four budget manageable. Childcare costs in Louisiana are also among the cheapest in the country (annual infant care typically $7,000-9,000 per child). The trade-off: median household income in Louisiana is $60,986, below the US median, so career options and wage growth can be limited compared with higher-cost states.
5 most expensive spotlight
Where a family of four needs the most income
#1
California
Required pre-tax: $105,165Median home $759,500California has a BEA housing parity of 154.3, well above the US average. Median 2-bedroom rent of $2,179/month and median home value of $759,500 push the housing line of a family-of-four budget to 35-50 percent of pre-tax income. Childcare costs are among the highest in the country (annual infant care typically $18,000-28,000 per child). The offset: median household income in California is $100,149, above the US median of $81,604, and the wage growth in finance, tech, healthcare, and academia tends to be substantial.
#2
Hawaii
Required pre-tax: $104,500Median home $875,900Hawaii has a BEA housing parity of 125.3, well above the US average. Median 2-bedroom rent of $1,953/month and median home value of $875,900 push the housing line of a family-of-four budget to 35-50 percent of pre-tax income. Childcare costs are among the highest in the country (annual infant care typically $18,000-28,000 per child). The offset: median household income in Hawaii is $100,745, above the US median of $81,604, and the wage growth in finance, tech, healthcare, and academia tends to be substantial.
#3
New Jersey
Required pre-tax: $103,360Median home $496,000New Jersey has a BEA housing parity of 134.3, well above the US average. Median 2-bedroom rent of $1,885/month and median home value of $496,000 push the housing line of a family-of-four budget to 35-50 percent of pre-tax income. Childcare costs are among the highest in the country (annual infant care typically $18,000-28,000 per child). The offset: median household income in New Jersey is $104,294, above the US median of $81,604, and the wage growth in finance, tech, healthcare, and academia tends to be substantial.
#4
New York
Required pre-tax: $102,505Median home $449,800New York has a BEA housing parity of 122.2, well above the US average. Median 2-bedroom rent of $1,634/month and median home value of $449,800 push the housing line of a family-of-four budget to 35-50 percent of pre-tax income. Childcare costs are among the highest in the country (annual infant care typically $18,000-28,000 per child). The offset: median household income in New York is $85,820, above the US median of $81,604, and the wage growth in finance, tech, healthcare, and academia tends to be substantial.
#5
Washington
Required pre-tax: $101,650Median home $602,200Washington has a BEA housing parity of 126.0, well above the US average. Median 2-bedroom rent of $1,837/month and median home value of $602,200 push the housing line of a family-of-four budget to 35-50 percent of pre-tax income. Childcare costs are among the highest in the country (annual infant care typically $18,000-28,000 per child). The offset: median household income in Washington is $99,389, above the US median of $81,604, and the wage growth in finance, tech, healthcare, and academia tends to be substantial.
The childcare wedge
Why childcare is the swing factor for families
For families with children under age 5, childcare is typically the second-largest line item after housing, and in some states it can rival housing. Per the Child Care Aware of America 2024 report, annual infant care cost ranges from roughly $7,000 (Mississippi, Alabama, South Dakota) to roughly $28,000 (Massachusetts, California, New York). For a family with two children under age 5 in full-time daycare, the total childcare cost can exceed $40,000 per year in the most expensive states.
The childcare cost differential between states is much larger than the housing differential in percentage terms. A family relocating from California to Mississippi can see housing cost drop by 70 percent and childcare cost drop by 75 percent. This is one reason that the early-career family relocation pattern (young families moving from coastal HCOL states to the Southeast and Midwest) is so common.
Once children reach school age (typically 5-6), the childcare wedge collapses dramatically. Public school replaces full-time daycare, dropping the cost to roughly the cost of after-school care and summer programs ($2,000-5,000 per child per year in most states). Families often re-evaluate location after the youngest child enters kindergarten, when the high-childcare-cost states become more tenable.
Universal pre-kindergarten programs are expanding in some states (notably Vermont, New York, Massachusetts, Oklahoma, Florida) which reduces the childcare burden for families with 4-year-olds. The expansion is uneven and quality varies; check the specific district before relying on it for cost planning.
Frequently Asked
Family of four cost of living, answered
What is a family of four's cost of living anchored to?
The MIT Living Wage Calculator publishes an hourly wage threshold for each US state and county that covers a fixed basket of housing, food, childcare, healthcare, transportation, and other necessities. For a family of 2 adults and 2 children with both adults working, the 2024 vintage of the MIT Living Wage required pre-tax household income ranges roughly from $80,000 (Mississippi, Kansas, West Virginia) to $170,000 (Hawaii). The figures on this page take the national anchor and rescale it by each state's BEA all-items price parity, 2024 reference year. They do not reproduce MIT's own per-state basket.
What is the cheapest state for a family of four?
Arkansas at approximately $82,555 pre-tax required household income. Mississippi ($82,650), Iowa ($83,410), Oklahoma ($83,410), and Louisiana ($83,790) round out the bottom 5. These are anchors; actual required income varies by specific county and lifestyle. The MIT Living Wage Calculator allows county-level lookups.
What is childcare cost by state for a family with two young children?
Childcare is the second-largest line item after housing for many families with under-school-age children. The Child Care Aware of America 2024 report shows annual infant care cost ranging from roughly $7,000 (Mississippi, Alabama) to roughly $28,000 (Massachusetts, California, New York). For two children under age 5, the cost can exceed $40,000 per year in the most expensive states. Once children reach school age (5-6), the cost drops substantially as public school replaces full-time daycare. Our estimates assume one child in childcare and one in school for the anchor calculation.
How does the MIT Living Wage differ from a price parity?
They answer different questions. The MIT Living Wage Calculator prices a specific basket of basic-needs items (housing, childcare, food, healthcare, transportation, other) and works out the hourly wage needed to cover it at county level. A BEA regional price parity is not a budget at all: it says how much a dollar buys in one state relative to the nation, across everything households consume. For family-of-four planning MIT is the more useful anchor, which is why this page uses MIT for the level and BEA only for the state-to-state adjustment.
How much does housing cost matter for a family of four?
Housing is roughly 30-40 percent of a family-of-four budget in most states, rising to 45-50 percent in expensive metros and falling to 25-30 percent in cheaper states. The income needed to carry a median-home mortgage scales with the median home itself, which runs from $170,800 in West Virginia to $875,900 in Hawaii (Census ACS 2024 1-year). For renters the absolute cost is lower: keeping the state's median 2-bedroom gross rent at 28 percent of household income takes roughly $39,000 a year in West Virginia ($906 a month) and roughly $93,000 in California ($2,179 a month).
Does this account for state taxes?
The estimates here are pre-tax required household income. After-tax disposable income depends on state income tax structure, property tax, sales tax, and federal tax. A $100,000 household in a no-state-income-tax state (TX, FL, TN, WA) has roughly $5,000-8,000 more disposable income than the same household in a high-tax state (CA, NY, NJ). For families budgeting around a specific salary, layer the income tax estimate on top of the pre-tax requirement. See our taxes page for state-by-state detail.
What about families with more children or single-parent households?
MIT Living Wage publishes estimates for 1-adult and 2-adult households with 0, 1, 2, or 3 children. A 2-adult, 3-child household typically needs 15-25 percent more pre-tax income than a 2-adult, 2-child household, primarily because of additional childcare and housing-space requirements. A 1-adult, 2-child household typically needs roughly 80 percent of a 2-adult, 2-child household income because there is only one earner but childcare needs are similar. The MIT calculator lets you select the household structure for an exact county-level estimate.