The Gap Between Minimum Wage and the Cost of Living in Every State
“Minimum wage” and “living wage” aren’t just different concepts. They are also often very far apart.
In all 50 U.S. states and the District of Columbia, state minimum-wage income falls short of the average cost of living. In many cases, far short. That’s according to a new GOBankingRates study comparing the two.
In the states where a minimum wage job will get you closest to paying your bills, you’ll still come up about $14,000 short each year. In another state, the gap is $73,000 and you would have to work 2 1/2 minimum wage jobs, just to match the average cost of living.
Multiple states don’t have minimum wage laws and default to the national minimum wage. Of the 50 states and the District of Columbia, 20 match the $7.25-an-hour minimum prescribed by federal law.
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The national minimum wage hasn’t increased since July 24, 2009 — nearly 25 years. Efforts to boost the rate to $15.00 an hour have been introduced in each session of Congress since 2017 but so far have failed to pass.
Two states have different minimum wages depending on circumstances. Minnesota differentiates between large employers and small employers. The state of New York has different minimums for inside and outside of New York City.
Minimum wage laws at city and other levels may also apply. The city of Tukwila, Washington — a Seattle suburb — had the highest minimum wage in the nation as of January ($20.29 per hour for large employers and $18.29 for mid-sized employers.) Seattle was close behind at $19.97 an hour for companies with more than 500 employees.
Here’s a look at each state’s minimum wage, monthly average total cost of living, monthly income for minimum wage and average monthly gap; plus each state’s annual average total cost of living, annual income for minimum wage and average annual gap.
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Alabama
State minimum wage: $7.25
Monthly average total cost of living: $3,233
Minimum wage monthly income: $1,257
Average monthly gap: -$1,977
Annual average total cost of living: $38,799
Minimum wage annual income: $15,080
Average annual gap: -$23,719
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Alaska
State minimum wage: $11.73
Monthly average total cost of living: $4,923
Minimum wage monthly income: $2,033
Average monthly gap: -$2,890
Annual average total cost of living: $59,073
Minimum wage annual income: $24,398
Average annual gap: -$34,675
Arizona
State minimum wage: $14.35
Monthly average total cost of living: $4,661
Minimum wage monthly income: $2,487
Average monthly gap: -$2,174
Annual average total cost of living: $55,937
Minimum wage annual income: $29,848
Average annual gap: -$26,089
Arkansas
State minimum wage: $11.00
Monthly average total cost of living: $3,067
Minimum wage monthly income: $1,907
Average monthly gap: -$1,161
Annual average total cost of living: $36,807
Minimum wage annual income: $22,880
Average annual gap: -$13,927
California
State minimum wage: $16.00
Monthly average total cost of living: $7,168
Minimum wage monthly income: $2,773
Average monthly gap: -$4,395
Annual average total cost of living: $86,017
Minimum wage annual income: $33,280
Average annual gap: -$52,737
Colorado
State minimum wage: $14.42
Monthly average total cost of living: $5,384
Minimum wage monthly income: $2,499
Average monthly gap: -$2,884
Annual average total cost of living: $64,604
Minimum wage annual income: $29,994
Average annual gap: -$34,610
Connecticut
State minimum wage: $15.69
Monthly average total cost of living: $4,767
Minimum wage monthly income: $2,720
Average monthly gap: -$2,047
Annual average total cost of living: $57,204
Minimum wage annual income: $32,635
Average annual gap: -$24,569
Delaware
State minimum wage: $13.25
Monthly average total cost of living: $4,344
Minimum wage monthly income: $2,297
Average monthly gap: -$2,048
Annual average total cost of living: $52,134
Minimum wage annual income: $27,560
Average annual gap: -$24,574
District of Columbia
District minimum wage: $17.50
Monthly average total cost of living: $6,530
Minimum wage monthly income: $3,033
Average monthly gap: -$3,497
Annual average total cost of living: $78,360
Minimum wage annual income: $36,400
Average annual gap: -$41,960
Florida
State minimum wage: $12.00
Monthly average total cost of living: $4,462
Minimum wage monthly income: $2,080
Average monthly gap: -$2,382
Annual average total cost of living: $53,545
Minimum wage annual income: $24,960
Average annual gap: -$28,585
Georgia
State minimum wage: $7.25
Monthly average total cost of living: $3,903
Minimum wage monthly income: $1,257
Average monthly gap: -$2,646
Annual average total cost of living: $46,831
Minimum wage annual income: $15,080
Average annual gap: -$31,751
Hawaii
State minimum wage: $14.00
Monthly average total cost of living: $8,508
Minimum wage monthly income: $2,427
Average monthly gap: -$6,081
Annual average total cost of living: $102,098
Minimum wage annual income: x $29,120
Average annual gap: -$72,978
Idaho
State minimum wage: $7.25
Monthly average total cost of living: $4,719
Minimum wage monthly income: $1,257
Average monthly gap: -$3,462
Annual average total cost of living: $56,626
Minimum wage annual income: $15,080
Average annual gap: -$41,546
Illinois
State minimum wage: $14.00
Monthly average total cost of living: $3,555
Minimum wage monthly income: $2,427
Average monthly gap: -$1,128
Annual average total cost of living: $42,659
Minimum wage annual income: $29,120
Average annual gap: -$13,539
Indiana
State minimum wage: $7.25
Monthly average total cost of living: $3,433
Minimum wage monthly income: $1,257
Average monthly gap: -$2,177
Annual average total cost of living: $15,080
Minimum wage annual income: $41,200
Average annual gap: -$26,120
Iowa
State minimum wage: $7.25
Monthly average total cost of living: $3,301
Minimum wage monthly income: $1,257
Average monthly gap: -$2,044
Annual average total cost of living: $39,611
Minimum wage annual income: $15,080
Average annual gap: -$24,531
Kansas
State minimum wage: $7.25
Monthly average total cost of living: $3,312
Minimum wage monthly income: $1,257
Average monthly gap: -$2,055
Annual average total cost of living: $39,740
Minimum wage annual income: $15,080
Average annual gap: -$24,660
Kentucky
State minimum wage: $7.25
Monthly average total cost of living: $3,140
Minimum wage monthly income: $1,257
Average monthly gap: -$1,884
Annual average total cost of living: $37,682
Minimum wage annual income: $15,080
Average annual gap: -$22,602
Louisiana
State minimum wage: $7.25
Monthly average total cost of living: $3,097
Minimum wage monthly income: $1,257
Average monthly gap: -$1,840
Annual average total cost of living: $37,161
Minimum wage annual income: $15,080
Average annual gap: -$22,081
Maine
State minimum wage: $14.15
Monthly average total cost of living: $4,501
Minimum wage monthly income: $2,453
Average monthly gap: -$2,049
Annual average total cost of living: $54,017
Minimum wage annual income: $29,432
Average annual gap: -$24,585
Maryland
State minimum wage: $15.00
Monthly average total cost of living: $4,642
Minimum wage monthly income: $2,600
Average monthly gap: -$2,042
Annual average total cost of living: $55,705
Minimum wage annual income: $31,200
Average annual gap: -$24,505
Massachusetts
State minimum wage: $15.00
Monthly average total cost of living: $6,228
Minimum wage monthly income: $2,600
Average monthly gap: -$3,628
Annual average total cost of living: $74,738
Minimum wage annual income: $31,200
Average annual gap: -$43,538
Michigan
State minimum wage: $10.33
Monthly average total cost of living: $3,412
Minimum wage monthly income: $1,791
Average monthly gap: -$1,622
Annual average total cost of living: $40,949
Minimum wage annual income: $21,486
Average annual gap: -$19,463
Minnesota (small employers)
State minimum wage: $8.85
Monthly average total cost of living: $4,055
Minimum wage monthly income: $1,534
Average monthly gap: -$2,521
Annual average total cost of living: $48,657
Minimum wage annual income: $18,408
Average annual gap: -$30,249
Minnesota (large employers)
State minimum wage: $10.85
Monthly average total cost of living: $4,055
Minimum wage monthly income: $1,881
Average monthly gap: -$2,174
Annual average total cost of living: $48,657
Minimum wage annual income: $22,568
Average annual gap: -$26,089
Mississippi
State minimum wage: $7.25
Monthly average total cost of living: $2,924
Minimum wage monthly income: $1,257
Average monthly gap: -$1,667
Annual average total cost of living: $35,090
Minimum wage annual income: $15,080
Average annual gap: -$20,010
Missouri
State minimum wage: $12.30
Monthly average total cost of living: $3,355
Minimum wage monthly income: $2,132
Average monthly gap: -$1,223
Annual average total cost of living: $40,265
Minimum wage annual income: $25,584
Average annual gap: -$14,681
Montana
State minimum wage: $10.30
Monthly average total cost of living: $4,827
Minimum wage monthly income: $1,785
Average monthly gap: -$3,041
Annual average total cost of living: $57,921
Minimum wage annual income: $21,424
Average annual gap: -$36,497
Nebraska
State minimum wage: $12.00
Monthly average total cost of living: $3,497
Minimum wage monthly income: $2,080
Average monthly gap: -$1,417
Annual average total cost of living: $41,970
Minimum wage annual income: $24,960
Average annual gap: -$17,010
Nevada
State minimum wage: $12.00
Monthly average total cost of living: $4,787
Minimum wage monthly income: $2,080
Average monthly gap: -$2,707
Annual average total cost of living: $57,445
Minimum wage annual income: $24,960
Average annual gap: -$32,485
New Hampshire
State minimum wage: $7.25
Monthly average total cost of living: $5,257
Minimum wage monthly income: $1,257
Average monthly gap: -$4,000
Annual average total cost of living: $63,085
Minimum wage annual income: $15,080
Average annual gap: -$48,005
New Jersey
State minimum wage: $15.13
Monthly average total cost of living: $5,326
Minimum wage monthly income: $2,623
Average monthly gap: -$2,704
Annual average total cost of living: $63,913
Minimum wage annual income: $31,470
Average annual gap: -$32,442
New Mexico
State minimum wage: $12.00
Monthly average total cost of living: $3,740
Minimum wage monthly income: $2,080
Average monthly gap: -$1,660
Annual average total cost of living: $44,881
Minimum wage annual income: $24,960
Average annual gap: -$19,921
New York (within New York City)
State minimum wage: $16.00
Monthly average total cost of living: $4,770
Minimum wage monthly income: $2,773
Average monthly gap: -$1,997
Annual average total cost of living: $57,244
Minimum wage annual income: $33,280
Average annual gap: -$23,964
New York (outside of New York City)
State minimum wage: $15.00
Monthly average total cost of living: $4,770
Minimum wage monthly income: $2,600
Average monthly gap: -$2,170
Annual average total cost of living: $57,244
Minimum wage annual income: $31,200
Average annual gap: -$26,044
North Carolina
State minimum wage: $7.25
Monthly average total cost of living: $3,974
Minimum wage monthly income: $1,257
Average monthly gap: -$2,718
Annual average total cost of living: $47,690
Minimum wage annual income: $15,080
Average annual gap: -$32,610
North Dakota
State minimum wage: $7.25
Monthly average total cost of living: $3,601
Minimum wage monthly income: $1,257
Average monthly gap: -$2,344
Annual average total cost of living: $43,212
Minimum wage annual income: $15,080
Average annual gap: -$28,132
Ohio
State minimum wage: $10.45
Monthly average total cost of living: $3,395
Minimum wage monthly income: $1,811
Average monthly gap: -$1,584
Annual average total cost of living: $40,742
Minimum wage annual income: $21,736
Average annual gap: -$19,006
Oklahoma
State minimum wage: $7.25
Monthly average total cost of living: $3,127
Minimum wage monthly income: $1,257
Average monthly gap: -$1,870
Annual average total cost of living: $37,525
Minimum wage annual income: $15,080
Average annual gap: -$22,445
Oregon
State minimum wage: $14.70
Monthly average total cost of living: $5,211
Minimum wage monthly income: $2,548
Average monthly gap: -$2,663
Annual average total cost of living: $62,538
Minimum wage annual income: $30,576
Average annual gap: -$31,962
Pennsylvania
State minimum wage: $7.25
Monthly average total cost of living: $3,646
Minimum wage monthly income: $1,257
Average monthly gap: -$2,390
Annual average total cost of living: $43,754
Minimum wage annual income: $15,080
Average annual gap: -$28,674
Rhode Island
State minimum wage: $14.00
Monthly average total cost of living: $4,905
Minimum wage monthly income: $2,427
Average monthly gap: -$2,478
Annual average total cost of living: $58,856
Minimum wage annual income: $29,120
Average annual gap: -$29,736
South Carolina
State minimum wage: $7.25
Monthly average total cost of living: $3,731
Minimum wage monthly income: $1,257
Average monthly gap: -$2,475
Annual average total cost of living: $44,775
Minimum wage annual income: $15,080
Average annual gap: -$29,695
South Dakota
State minimum wage: $11.20
Monthly average total cost of living: $3,742
Minimum wage monthly income: $1,941
Average monthly gap: -$1,801
Annual average total cost of living: $44,909
Minimum wage annual income: $23,296
Average annual gap: -$21,613
Tennessee
State minimum wage: $7.25
Monthly average total cost of living: $3,772
Minimum wage monthly income: $1,257
Average monthly gap: -$2,515
Annual average total cost of living: $45,262
Minimum wage annual income: $15,080
Average annual gap: -$30,182
Texas
State minimum wage: $7.25
Monthly average total cost of living: $3,753
Minimum wage monthly income: $1,257
Average monthly gap: -$2,496
Annual average total cost of living: $45,035
Minimum wage annual income: $15,080
Average annual gap: -$29,955
Utah
State minimum wage: $7.25
Monthly average total cost of living: $5,146
Minimum wage monthly income: $1,257
Average monthly gap: -$3,889
Annual average total cost of living: $61,753
Minimum wage annual income: $15,080
Average annual gap: -$46,673
Vermont
State minimum wage: $13.67
Monthly average total cost of living: $4,551
Minimum wage monthly income: $2,369
Average monthly gap: -$2,181
Annual average total cost of living: $54,609
Minimum wage annual income: $28,434
Average annual gap: -$26,176
Virginia
State minimum wage: $12.00
Monthly average total cost of living: $4,391
Minimum wage monthly income: $2,080
Average monthly gap: -$2,311
Annual average total cost of living: $52,688
Minimum wage annual income: $24,960
Average annual gap: -$27,728
Washington
State minimum wage: $16.28
Monthly average total cost of living: $5,929
Minimum wage monthly income: $2,822
Average monthly gap: -$3,107
Annual average total cost of living: $71,142
Minimum wage annual income: $33,862
Average annual gap: -$37,280
West Virginia
State minimum wage: $8.75
Monthly average total cost of living: $2,926
Minimum wage monthly income: $1,517
Average monthly gap: -$1,410
Annual average total cost of living: $35,116
Minimum wage annual income: $18,200
Average annual gap: -$16,916
Wisconsin
State minimum wage: $7.25
Monthly average total cost of living: $3,888
Minimum wage monthly income: $1,257
Average monthly gap: -$2,631
Annual average total cost of living: $46,653
Minimum wage annual income: $15,080
Average annual gap: -$31,573
Wyoming
State minimum wage: $7.25
Monthly average total cost of living: $4,001
Minimum wage monthly income: $1,257
Average monthly gap: -$2,745
Annual average total cost of living: $48,015
Minimum wage annual income: $15,080
Average annual gap: -$32,935
Methodology: For this study, GOBankingRates analyzed each U.S. state to determine the difference between the average minimum wage income and the average cost of living. Cost-of-living indexes for each state were sourced from the Missouri Economic and Research Information Center. Using the average expenditure costs for all residents (sourced from the Bureau of Labor Statistics Consumer Expenditure Survey), the average expenditure costs for each state were calculated. The average single-family home value from May 2024 was sourced from the Zillow Home Value Index. By assuming a 10% downpayment and using the national average 30-year fixed mortgage rate, the average monthly mortgage cost was calculated. Using the average mortgage and expenditure cost, the total cost of living for each state was calculated. Minimum wages for each state were sourced from the National Conference of State Legislatures. Using a 40-hour work week over 52 weeks a year, the total average income for minimum wage was calculated. The average annual minimum wage income and average total cost of living were used to find the difference between the two. All data was collected and is up to date as of July 5, 2024.
This article originally appeared on GOBankingRates.com: The Gap Between Minimum Wage and the Cost of Living in Every State