Which U.S. States are the Most and Least Affordable for Families?

Which states are the most and least affordable places for American families to live after paying taxes and their essential expenses?

The Common Sense Institute tallied up the numbers and ranked each state after subtracting federal and state taxes and also essential expenses like housing, utilities, groceries, auto and health insurance, fuel, and childcare in each state from the paychecks for a family of four with two adult breadwinners who work full time and earn the state’s median hourly income.

Visual Capitalist’s Dorothy Neufield then revisualized the results to focus on how much that of the modeled families’ income remained. Here’s her version of the Common Sense Institute’s map:

Here’s her analysis of the most and least affordable states:

In top-ranked states like Iowa, households keep nearly 35% of their income, about $2,900 per month. In Hawaii, that figure drops to just 9%. That’s a difference of more than $2,000 per month in disposable income.

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Midwestern states dominate the rankings, largely due to lower housing and childcare costs.

Iowa ranks first, with households keeping 34.7% of their income, followed by South Dakota (34.6%) and North Dakota (33.5%).

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In the least affordable states, families spend up to 91% of their income on essentials and taxes, leaving little room for savings or unexpected expenses.

Hawaii families are most strained, with 9% of income left, followed by California at 10.9%. Between 2019 and 2025, California households saw one of the largest declines in affordability across states.

Massachusetts, despite high incomes, ranks near the bottom. Childcare alone consumes 24% of household income, showing how a single cost category can erode income advantages.

The Common Sense Instutute also looks at how each state’s affordability has changed from 2019 to 2025. They find that Kansas, New Mexico, and Utah have seen their cost of living fall the most, while Rhode Island, Massachusetts, and California have seen the biggest escalation in living expenses over these years.

References

Dorothy Neufield. Mapped: Where Americans Keep Most of Their Paycheck. Visual Capitalist. [Online article]. 27 April 2026.