Feb. 22, 2026, 5:05 a.m. ET
American families living in half the country — 25 states — need to earn about $30 an hour, or roughly $53,000 per year after taxes, to make ends meet, according to an analysis from all-in-one finance app platform MoneyLion.
Hawaii requires the highest hourly wage of $69.43 to live, MoneyLion found after calculating each state’s costs of “necessities,” including housing, groceries, utilities, healthcare and transportation, using data from the 2024 Consumer Expenditure Survey. In zero states can a family of four get by earning less than $20 an hour, it said. A family of four is defined as a married couple with children, the oldest child age 6 to 17, it said.
The numbers contrast with the federal hourly minimum wage, which remains stuck at the 2009 rate of $7.25, and the highest state minimum wage this year of $17.95 in Washington D.C., technically not a state at all, according to Federal Reserve data.
“These numbers highlight just how challenging it can be for families earning at or near the minimum wage in their state,” MoneyLion said.
Which states require the highest hourly wage to get by?
Hawaii tops the list with $69.43 an hour, or $110,782 after taxes for the year, to cover annual grocery costs of $12,505, housing costs of $62,903 andhealthcare costsof $10,321, MoneyLion said.
It’s followed by:
- Massachusetts at $54.25 per hour, or $89,725 after taxes annually, to pay yearly for $9,812 for groceries, $49,063 for housing and $10,788 for healthcare.
- Californians need to earn $46.22 hourly, or $79,367 after taxes each year, to afford annual groceries of $10,301, $38,298 for housing and $8,387 for healthcare.
What states require the lowest hourly wage to live on?
Families of four in Mississippi and Oklahoma require the smallest living wage. Those are the only two states with an hourly wage requirement in the $25 range.
- Mississippians need $25.35 an hour, or $45,424 after taxes annually, to pay for annual grocery costs of $9,036, housing costs of $14,788 and healthcare costs of $7,541
- Oklahomans must earn $25.65 hourly, or $45,620 after taxes annually, to afford $9,074 for groceries for the year, $14,304 for housing and $7,501 for healthcare.
How can people save when living costs are above wages?
People faced with wages lower than what’s required to cover necessities will need to budget tightly, experts said.
Start with small steps, they said.
“Pick only one overspent category and reduce it by 20% this month,” said Dmitry Savransky, chief executive of personal finance and budgeting app PocketGuard. “Next month, tackle another one.”
Try eliminating unnecessary subscriptions, reducing restaurant expenses and cutting frivolous spending, said Certified Financial Health Counselor Rudri Bhatt Patel, in a MoneyLion blog. Earmark and automate that money for savings, she said.
It’s also important to review your budget every month to detect patterns in spending and saving so you can adjust accordingly, Savransky said. “Those who see their progress are the ones who keep going,” he said.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.