New York families require an annual income of nearly $300,000 to live comfortably, positioning the state as the fourth most expensive in the U.S., according to an August report by financial technology company SmartAsset. New Jersey followed closely in fifth place.
The study determined the income needed to cover essential costs such as housing, groceries, and transportation, alongside leisure spending and savings, adhering to the 50/30/20 budgeting rule. Researchers utilized MIT's 2026 Living Wage Calculator to establish the salary required for a full-time worker to afford basic needs.
In New York, a single individual needs to earn $124,342 annually, while a family of four requires $291,533. For New Jersey, a single person needs $113,776 per year, and a family of four must earn $295,110.
The report indicates that a six-figure salary no longer guarantees financial comfort in many parts of the U.S. due to increasing costs. In New York, the income requirement for a single resident rose by 8.4% in the past year, the second-highest increase nationwide. The income needed for single individuals in New Jersey increased by 4.4%.
Only six states—Tennessee, Maryland, Louisiana, North Carolina, Mississippi, and Texas—saw a decrease in the minimum income required for an unmarried person since 2025. Hawaii, Massachusetts, and California were the only states ranked more expensive than New York.
High housing and food costs, alongside rising transportation expenses, have contributed to New York's high cost of living. Rents in New York City have reportedly exceeded $6,600 per month.