The federal minimum wage in the United States is $7.25 an hour. It has not changed since 2009.
Over that same period, the cost of living has moved sharply in the opposite direction.
According to U.S. Treasury data, rents have outpaced income in most U.S. counties. Grocery prices are up more than 40 percent, according to USDA Economic Research Service data. Health insurance premiums have climbed year after year.
Taken together, these rising costs put steady pressure on household budgets. A full-time minimum wage worker today still earns about $15,000 before taxes.
That income is far below what it takes to meet basic living costs in the United States today.
A living wage is the hourly income needed to cover essentials like housing, food, transportation, and healthcare in each state. It represents a baseline for self-sufficiency, not comfort.
No state in America pays a minimum wage that covers the living wage for a single adult.
In every state, the federal minimum wage falls short of that baseline.
This report analyzes the gap between minimum wage and living wage across all 50 states, including where workers fall shortest and which states come closest to covering basic living costs.
Key Findings
The Gap Across Every State
The map below shows each state shaded by its annual income gap. Darker states have larger gaps. Hover over any state to see the full breakdown.
Hover over any state to see the full breakdown. On mobile, tap a state.
Data: MIT Living Wage Calculator (Feb 2026) & U.S. Dept. of Labor (Jan 2026). Gap = living wage minus state minimum wage × 2,080 hrs. Single adult, no children. Analysis & gap calculations: MoneyPantry.com.
States with the Largest Gap
These 10 states have the widest annual gap between minimum wage and living wage. In most cases, the state has not raised its minimum wage above the federal floor.
10 states with the largest gap
Annual income shortfall for a full-time minimum wage worker (single adult, 2026)
Annual gap = (living wage minus min wage) x 2,080 hrs. Living wage: MIT Living Wage Calculator (Feb 2026), single adult, no children. Min wage: U.S. Dept. of Labor (Jan 2026). Analysis: MoneyPantry.com.
New Hampshire sits at the top of this list, and that surprises most people. It is not one of America’s most expensive states. But it still uses the federal minimum wage of $7.25, while a single adult needs $25.77 an hour to cover basic costs there. That produces the country’s largest gap: $38,522 a year.
Massachusetts ranks sixth despite having a $15 minimum wage. Its living wage of $30.58 per hour is the second highest in the country, driven by housing and healthcare costs concentrated in the greater Boston area.
Pennsylvania tells a different story. It is a large, mid-cost state that has not raised its minimum wage above the federal floor in nearly two decades. At $7.25 per hour, its annual gap reaches $33,426.
States with the Smallest Gap
These 10 states have the narrowest gap between minimum wage and living wage. None has closed it entirely.
10 states with the smallest gap
These states currently have the smallest gap between minimum wage and living wage (single adult, 2026)
Annual gap = (living wage minus min wage) x 2,080 hrs. Living wage: MIT Living Wage Calculator (Feb 2026), single adult, no children. Min wage: U.S. Dept. of Labor (Jan 2026). Analysis: MoneyPantry.com.
Missouri and Nebraska record the two smallest gaps. Both states raised their minimum wages to $15 through voter-approved ballot measures, substantially narrowing the gap compared to neighboring states still at $7.25. Even Missouri’s gap of $13,042 a year means a full-time minimum wage worker falls well short of covering basic living costs.
Michigan increased its minimum wage to $13.73 in January 2026, up from $12.48 the year before, moving it into the lowest-gap group. It is scheduled to increase again to $15.00 in January 2027.
Washington state, with the highest minimum wage of any state at $17.13, does not appear here. Its living wage of $26.59 produces an annual gap of $19,677, placing it just outside the lowest 10.
The High Minimum Wage Paradox
Seventeen states had minimum wages at or above $15 as of January 2026. Higher minimum wages reduce the gap. But they do not eliminate it.
Massachusetts has a $15 minimum wage. Its workers still fall $32,406 short of the living wage each year. Hawaii pays $16 an hour. The gap is still $31,221.
The reason is that wage increases and cost increases have not moved in sync. In many high-wage states, living costs have risen just as fast as, or faster than, minimum wage levels.
Missouri’s $15 minimum wage produces the smallest gap in the country because its living wage is $21.27. Massachusetts has the same $15 floor, but its living wage is $30.58. The wage is the same, but the cost of housing, healthcare, and transportation is not.
The table below shows how this plays out across the highest-wage states in the country.
| State | Min Wage | Living Wage | Annual Gap |
|---|---|---|---|
| Massachusetts | $15.00 | $30.58 | $32,406 |
| Hawaii | $16.00 | $31.01 | $31,221 |
| California | $16.90 | $30.48 | $28,246 |
| New York | $16.00 | $29.89 | $28,891 |
| New Jersey | $15.92 | $27.35 | $23,774 |
| Washington | $17.13 | $26.59 | $19,677 |
| Connecticut | $16.94 | $26.05 | $18,949 |
| Missouri | $15.00 | $21.27 | $13,042 |
| Nebraska | $15.00 | $21.75 | $14,040 |
All 50 States: Full Data Table
This table shows the living wage, minimum wage, hourly gap, and annual gap for all 50 states, sorted alphabetically. Living wage figures are for a single adult with no children. See the Methodology section for notes on regional variations.
| State | Living Wage | Min Wage | Hourly Gap | Annual Gap |
|---|---|---|---|---|
| Alabama | $21.06 | $7.25 | $13.81 | $28,725 |
| Alaska | $24.98 | $13.00 | $11.98 | $24,918 |
| Arizona | $24.47 | $15.15 | $9.32 | $19,386 |
| Arkansas | $20.01 | $11.00 | $9.01 | $18,741 |
| California | $30.48 | $16.90 | $13.58 | $28,246 |
| Colorado | $26.00 | $15.16 | $10.84 | $22,547 |
| Connecticut | $26.05 | $16.94 | $9.11 | $18,949 |
| Delaware | $23.79 | $15.00 | $8.79 | $18,283 |
| Florida | $24.09 | $14.00 | $10.09 | $20,987 |
| Georgia | $24.21 | $7.25 | $16.96 | $35,277 |
| Hawaii | $31.01 | $16.00 | $15.01 | $31,221 |
| Idaho | $23.60 | $7.25 | $16.35 | $34,008 |
| Illinois | $24.42 | $15.00 | $9.42 | $19,594 |
| Indiana | $21.79 | $7.25 | $14.54 | $30,243 |
| Iowa | $21.29 | $7.25 | $14.04 | $29,203 |
| Kansas | $21.63 | $7.25 | $14.38 | $29,910 |
| Kentucky | $20.21 | $7.25 | $12.96 | $26,957 |
| Louisiana | $20.37 | $7.25 | $13.12 | $27,290 |
| Maine | $24.74 | $15.10 | $9.64 | $20,051 |
| Maryland | $25.94 | $15.00 | $10.94 | $22,755 |
| Massachusetts | $30.58 | $15.00 | $15.58 | $32,406 |
| Michigan | $22.07 | $13.73 | $8.34 | $17,347 |
| Minnesota | $23.31 | $11.41 | $11.90 | $24,752 |
| Mississippi | $20.69 | $7.25 | $13.44 | $27,955 |
| Missouri | $21.27 | $15.00 | $6.27 | $13,042 |
| Montana | $24.23 | $10.85 | $13.38 | $27,830 |
| Nebraska | $21.75 | $15.00 | $6.75 | $14,040 |
| Nevada | $24.16 | $12.00 | $12.16 | $25,293 |
| New Hampshire | $25.77 | $7.25 | $18.52 | $38,522 |
| New Jersey | $27.35 | $15.92 | $11.43 | $23,774 |
| New Mexico | $21.93 | $12.00 | $9.93 | $20,654 |
| New York | $29.89 | $16.00* | $13.89 | $28,891 |
| North Carolina | $22.47 | $7.25 | $15.22 | $31,658 |
| North Dakota | $20.61 | $7.25 | $13.36 | $27,789 |
| Ohio | $21.00 | $11.00 | $10.00 | $20,800 |
| Oklahoma | $20.73 | $7.25 | $13.48 | $28,038 |
| Oregon | $26.46 | $15.05 | $11.41 | $23,733 |
| Pennsylvania | $23.32 | $7.25 | $16.07 | $33,426 |
| Rhode Island | $25.01 | $16.00 | $9.01 | $18,741 |
| South Carolina | $22.34 | $7.25 | $15.09 | $31,387 |
| South Dakota | $20.53 | $11.85 | $8.68 | $18,054 |
| Tennessee | $21.61 | $7.25 | $14.36 | $29,869 |
| Texas | $21.77 | $7.25 | $14.52 | $30,202 |
| Utah | $24.71 | $7.25 | $17.46 | $36,317 |
| Vermont | $24.92 | $14.42 | $10.50 | $21,840 |
| Virginia | $25.72 | $12.77 | $12.95 | $26,936 |
| Washington | $26.59 | $17.13 | $9.46 | $19,677 |
| West Virginia | $19.53 | $8.75 | $10.78 | $22,422 |
| Wisconsin | $21.88 | $7.25 | $14.63 | $30,430 |
| Wyoming | $21.45 | $7.25 | $14.20 | $29,536 |
*New York minimum wage is $17.00 in New York City, Nassau, Suffolk, and Westchester counties. The $16.00 figure applies to the rest of the state. See methodology notes below.
Methodology and Data Sources
Living wage
Living wage figures are for a single adult with no children and are sourced from the MIT Living Wage Calculator, updated February 15, 2026.
MIT defines the living wage as the hourly rate a full-time worker must earn to cover housing, food, transportation, healthcare, broadband, and taxes without outside assistance. Full methodology is available at livingwage.mit.edu/pages/methodology.
Minimum wage
Minimum wage figures reflect each state’s rate as of January 1, 2026, sourced from the U.S. Department of Labor Wage and Hour Division.
States with no minimum wage above the federal rate (Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, Wyoming) use the federal rate of $7.25.
Gap calculation
The hourly gap is the difference between the living wage and the state minimum wage. The annual gap multiplies that figure by 2,080 hours, the standard full-time work year. Gap figures were calculated by MoneyPantry using primary source data.
Notes on state-level complexity
All figures use each state’s primary statewide minimum wage for standard full-time employers as of January 1, 2026. Several states have additional wage variations not reflected in the main comparison:
Florida’s rate increases to $15.00 in September 2026, but the January 2026 rate of $14.00 is used. Oregon operates three regional wage tiers, so the statewide standard rate of $15.05 is used. New York’s $17.00 rate applies in New York City, Nassau, Suffolk, and Westchester counties, while $16.00 applies elsewhere. California and New Jersey include local or employer-size variations that may result in higher effective wages in some areas.
This approach ensures a consistent comparison across all 50 states. Data will be reviewed and updated annually.
Data Limitations
This analysis uses statewide minimum wage rates and a single-adult living wage baseline for consistency across all 50 states. It does not account for household size, regional cost differences within states, or local minimum wage ordinances above state law in certain cities.
As a result, some workers may face higher or lower actual gaps depending on location, family size, and employer type. This report is intended to provide a standardized national comparison rather than a personalized wage estimate.
Why This Matters
The minimum wage was designed as a baseline for basic self-sufficiency. Comparing it to a living wage highlights how far that baseline has shifted from today’s cost of living in different parts of the country.
Download the Full Dataset
The complete dataset used in this analysis is available for researchers, journalists, and publishers. It includes state-level minimum wage figures, MIT living wage estimates, and the calculated hourly and annual gaps for all 50 states.
Download the full dataset (CSV)
If you use this data, please credit MoneyPantry.com and link to this page as the source.