Kenneth Glad
New data highlights the widening gap between earnings and everyday expenses across the country. Depending on where you live, the same salary can deliver vastly different standards of living.
A six-figure salary once signaled financial security in much of the United States.
Today, in several regions, even households near the top of the income ladder face mounting pressure from housing costs and borrowing rates, writes LadBible.
The starkest example is Washington, DC. A 2025 SmartAsset study found that households need to earn about $635,000 annually to rank among the top 10 percent of earners in the District. The rankings are based on IRS adjusted gross income filings by state, allowing comparisons across local tax data.
It reflects how expensive life in the American capital has become. Mortgage rates, which climbed sharply following Federal Reserve tightening cycles, have compounded the burden by raising monthly payments even for affluent buyers.
At a 7 percent rate, an $800,000 mortgage can mean monthly principal and interest payments of roughly $5,300 before taxes and insurance.
Federal Reserve data show that national home prices surged more than 40 percent between 2019 and 2023, far outpacing median wage growth over the same period. That means higher incomes haven’t kept pace with rising purchase prices and financing costs. In some cities, even $200,000 barely moves the needle.
Coasts and contrasts
On the West Coast and in parts of the Northeast, similar dynamics are at play. States such as California, New Jersey and Massachusetts require top-tier incomes well above $300,000 to enter the highest earning bracket, according to SmartAsset’s analysis.
Hannah Jones, senior economic research at Realtor.com, told the New York Post: “In the nation’s most expensive housing markets, Hawaii, New York, California, and Massachusetts, a $200,000 income would make only about 50% to 55% of homes affordable.”
By contrast, in states such as Kentucky and Oklahoma, the income needed to reach the top 10 percent is far lower. Home prices are cheaper. Property taxes also tend to be more moderate. Wage growth in many Southern and Midwestern states, however, has lagged behind coastal technology and finance hubs.
Lawrence Yun, chief economist at the National Association of Realtors, has pointed to tight housing supply as a key driver of sustained price growth, warning that limited inventory continues to keep prices elevated even as sales volumes fluctuate.
Redefining middle class
SmartAsset also examined 2023 U.S. Census Bureau data to define middle-class households as those earning between double and two-thirds their state’s median income.
Under that formula, middle-class earnings in New York range from $54,725 to $164,190. In Texas, the span runs from $50,515 to $151,560. In Maryland, it reaches from $65,779 to $197,356.
Surveys suggest many families feel squeezed despite these benchmarks. Forbes reported in 2023 that “over half” of Americans earning more than $100,000 were living “paycheck to paycheck.”
A 2024 survey by the National True Cost of Living Coalition found that two-thirds of middle-class Americans said they were struggling financially.
Housing construction has yet to fully close the gap. US housing starts in 2023 remained below pre-2008 averages, according to federal data, underscoring the supply constraints economists say are keeping prices elevated. Without a meaningful jump in new building or a drop in borrowing costs, the affordability crunch is likely to remain a defining economic issue for millions of households.
Full List: Middle-Class Income Ranges by State – based on 2023 Census data and SmartAsset methodology defining middle class as two-thirds to double median income)
Mississippi: $36,132 to $108,406
West Virginia: $37,295 to $111,896
Louisiana: $38,815 to $116,458
Arkansas: $39,129 to $117,400
Kentucky: $40,741 to $122,236
Oklahoma: $41,421 to $124,276
Alabama: $41,471 to $124,424
New Mexico: $41,508 to $124,536
Ohio: $45,175 to $135,538
Tennessee: $45,083 to $135,262
Missouri: $45,692 to $137,090
South Carolina: $45,198 to $135,608
Michigan: $46,117 to $138,366
Indiana: $46,313 to $138,954
Kansas: $46,884 to $140,666
Montana: $47,198 to $141,608
North Carolina: $47,198 to $141,608
Iowa: $47,617 to $142,866
South Dakota: $47,869 to $143,620
Wyoming: $48,272 to $144,830
Florida: $48,869 to $146,622
Maine: $49,150 to $147,466
Pennsylvania: $49,211 to $147,648
Wisconsin: $49,749 to $149,262
Georgia: $49,750 to $149,264
Idaho: $49,956 to $149,884
Texas: $50,515 to $151,560
Nevada: $50,904 to $152,728
North Dakota: $51,012 to $153,050
Arizona: $51,538 to $154,630
Illinois: $53,532 to $160,612
Oregon: $53,435 to $160,320
Vermont: $54,135 to $162,422
Delaware: $54,235 to $162,722
New York: $54,725 to $164,190
Rhode Island: $56,642 to $169,944
Minnesota: $56,718 to $170,172
Alaska: $57,748 to $173,262
Virginia: $59,948 to $179,862
Connecticut: $61,104 to $183,330
Colorado: $61,934 to $185,822
Utah: $62,274 to $186,842
Washington: $63,064 to $189,210
Hawaii: $63,542 to $190,644
California: $63,674 to $191,042
New Hampshire: $64,552 to $193,676
Maryland: $65,779 to $197,356
New Jersey: $66,514 to $199,562
Massachusetts: $66,565 to $199,716
Sources: SmartAsset; LadBible; Forbes; The New York Post
