According to a SmartAsset analysis, single individuals will need to earn over six figures to live comfortably in the most expensive U.S. states. “Comfortable” is defined as the monthly income needed to cover a 50/30/20 budget, with 50% for necessities, 30% for discretionary spending, and 20% for savings or investments. The analysis was based on data from the MIT Living Wage Calculator and revealed that the income needed for each state varies based on the cost of necessities. The five most expensive states for single workers are Massachusetts, Hawaii, California, New York, and Washington, where residents would need to earn well above the U.S. median income for single full-time workers, which is around $60,000.
Living alone in these states can come with added costs, often referred to as the “singles tax.” Apart from housing expenses, single individuals also incur extra costs for groceries, travel, transportation, and entertainment. This means that the national median income needed to live comfortably alone is $89,461, suggesting that the 50/30/20 budget might not be practical for most single individuals. To make ends meet, individuals may need to adjust their budget by living in a smaller apartment or reducing discretionary purchases like travel.
The analysis further details the annual income needed to live comfortably in each state, with figures ranging from $52,807 in North Dakota to $116,022 in Massachusetts. Those living in states like California, where the annual income needed is $113,651, or Hawaii at $113,693, would face significant challenges in meeting the expenses required to live comfortably. On the other end of the spectrum, states like West Virginia with an annual income needed of $78,790 may offer a more affordable living situation for single individuals.
The disparities in income needed across states highlight the varying cost of living in different parts of the country. While states like New York and California require six-figure incomes to live comfortably alone, others like Tennessee and Texas have lower income thresholds. These findings emphasize the importance of considering the cost of living when choosing where to reside, especially for single individuals who may face additional financial challenges due to the “singles tax.”
Overall, the SmartAsset analysis underscores the financial implications of living alone in the most expensive states in the U.S. Single individuals in these states would need to earn nearly double the national median income to cover the expenses associated with a comfortable lifestyle. By understanding the income needed to live comfortably in each state and considering factors such as the “singles tax,” individuals can make informed decisions about their living arrangements and budgeting strategies to ensure their financial well-being.
