Living comfortably in major U.S. cities now requires a significantly higher income than the national median. According to the latest Census data, the median household income in the U.S. is $80,610. However, in the country’s largest urban areas, a single adult needs at least $85,000 to maintain a comfortable lifestyle, while a family of four needs close to $200,000
Most households strive to balance essential daily expenses—such as housing, food, utilities, and childcare—with enjoying the present and planning for the future. This involves budgeting for occasional indulgences, like vacations or special purchases, while also setting aside savings for long-term goals such as retirement or a child’s education.
The 50/30/20 budgeting rule offers a guideline for achieving financial stability by allocating 50% of income to essential expenses, 30% to discretionary spending, and 20% to savings or debt repayment. To estimate the income needed to maintain this balance, SmartAsset analyzed the cost of necessities in 100 of the largest U.S. cities for both single adults and families of four, applying this budgeting framework.
Indianapolis is the most affordable major U.S. city for a single adult to live comfortably, requiring an estimated annual salary of $85,197. However, the cost increases significantly for families. A household with two adults and two children needs $222,726 to maintain a comfortable lifestyle in the Indiana capital—making it the 28th highest among large cities. In contrast, the city’s median household income is just $66,629.
Memphis, Tennessee, has the lowest required household income for a family of four to live comfortably among major cities. While it ranks 12th lowest for single adults, a two-parent, two-child household in Memphis needs just $198,349 annually—the lowest in the nation for large cities.
San Jose, California, has now surpassed New York City as the most expensive city for single adults. A single person in San Jose needs an annual salary of $147,430 to live comfortably, edging out New York City, where the requirement is $136,656. Last year, New York held the top spot with a required income of $138,570.
10 Places With the Highest Salary Needed to Live Comfortably
Large U.S. cities are ranked based on the projected full-time gross salary needed to cover basic expenses, occasional splurges and allow savings for long-term goals.
In San Jose, California, a single adult needs an annual salary of $147,430 to live comfortably, while a household with two working adults and two children requires a combined income of $371,571. This contrasts with the city’s median household income of $136,229.
In New York City, the annual income needed for a single adult to live comfortably is $136,656, and for two working adults with two children, it’s $306,093, whereas the median household income is $76,577.
Anaheim, California and Irvine, California both require $133,952 for a single adult and $301,600 for two working adults with two children to live comfortably. Anaheim’s median household income is $84,872, while Irvine’s is significantly higher at $127,989.
Santa Ana, California shares the same comfortable income thresholds—$133,952 for a single adult and $301,600 for a family—but its median household income is $85,914.
In Boston, Massachusetts, a single adult needs $133,578 per year, and a two-working-parent household with two children requires $352,102. The city’s median household income stands at $96,931.
Seattle, Washington requires an annual salary of $128,211 for a single adult and $327,475 for two working parents with two kids to live comfortably. The median household income is $120,608.
In San Diego, California, and neighboring Chula Vista, the cost of living comfortably is nearly identical: $127,754 for a single adult and $297,190 for a family. San Diego’s median household income is $105,780, while Chula Vista’s is $106,623.
Lastly, in Arlington, Virginia, a single adult needs $127,046, and a family of four with two working adults needs $355,430 to live comfortably. Arlington’s median household income is $140,219, one of the highest among the listed cities.
