What Is the Real Cost of Living in America?

In the United States, a high salary does not always translate into a comfortable life. When rent, health care, childcare, transportation, and taxes are taken into account, the true cost of living faced by families living in New York and New Jersey reaches striking proportions. So how much does a person living in the U.S. or a family with children actually need to earn to cover their basic needs?

The Living Wage Calculator data updated by the Massachusetts Institute of Technology (MIT) in 2026 reveals the true cost of living across different regions of the United States. The calculations cover not only rent but also food, health care, transportation, childcare, internet, phone, and taxes.

Moreover, those figures do not represent the cost of a luxurious lifestyle. The income level defined by MIT as a “living wage” indicates the amount required for an individual or a family to meet their basic needs without external financial assistance.

In New York, even a single person needs about 80,000 dollars.

The chart in New York, one of the most expensive regions in the United States, starts with a single adult living alone.

In New York County, which includes Manhattan, a single adult without children must earn about $79,469 per year before taxes to cover basic needs.

When a child enters the picture, the calculation changes rapidly.

In a family where both parents work and there is one child, the required annual gross household income rises to about $136,307. For a family with two children, the figure climbs to $168,927, and for a family with three children it reaches as high as $211,319.

In other words, an annual household income of $100,000 in New York may no longer equate to the high standard of living once assumed for families with children.

The bulk of the money leaves before it even enters the home.

When the budget of a New York family with one child and two working adults is examined, the reason the cost has risen so much becomes clearer.

According to MIT calculations, such a family's annual housing expense is about $40,877. Food costs $16,190, child care $16,551, health $12,357, transportation $6,866, and roughly $2,203 is needed for internet and phone.

When taxes and other basic necessities are added, the family's required gross income rises above $136,000.

Therefore, when discussing salaries in the United States, looking only at the annual gross figure can be misleading. There is a large gap between a single person earning $100,000 and a family with children having a total income of $100,000.

Is New Jersey Really Cheaper?

New Jersey, where the Turkish community in America lives densely, stands out as an alternative to New York. However, the figures here also show that family structure plays a major role.

In Bergen County, a single adult without children needs an annual gross income of about $59,784 to cover basic needs. Compared with the roughly $79,469 figure in Manhattan, New Jersey appears considerably more advantageous.

But the gap narrows for families with children.

In Bergen County, a household of two working adults and a child would need an annual gross income of about $120,077 to cover its basic needs.

That figure is around $136,000 in New York County.

Thus, moving from New York to New Jersey may reduce certain expenses, especially housing, but it does not fully eliminate the budgetary pressure on families with children.

Are Florida and Texas really a solution?

In recent years, discussions about moving from New York and New Jersey to states like Florida and Texas have frequently surfaced. Cost‑of‑living data show that these states offer significant advantages, especially in housing.

In Miami‑Dade County, a family of two working adults and a child would need an annual gross income of about $98,858.

In Harris County, which includes Houston, the annual income needed for the same family structure is about $85,000.

Thus, for the same family, an annual difference of tens of thousands of dollars can arise between New York and Texas.

However, cheap housing does not always translate into lower overall cost of living.

Rent in New York, car in Texas.

One of the most striking examples of this is transportation.

For a family of two working adults and one child, the annual housing cost in New York County is estimated at about $40,877, while in Harris County it drops to roughly $18,119.

However, the transportation picture is turning the other way.

While the same family's annual transportation cost in New York is about $6,866, it rises to $12,324 in Harris County.

While New York’s extensive public‑transport network reduces the need for cars, in regions where car dependence is higher, such as Texas, vehicle, fuel, insurance and other transportation costs can take up a larger share of a family’s budget.

In short, savings from rent in one state can be spent on a car in another state.

When you have a child, the entire bill changes.

One of the heaviest items in a family budget in the U.S. is child care.

The annual child‑care cost for a family of two working parents and two children is estimated at about $32,026 in New York County.

In Bergen County, the figure rises to roughly $37,053. The same expense is $19,419 in Miami‑Dade County and about $20,255 in Harris County.

These figures show that the common perception of New Jersey being cheaper than New York in every line item is not always accurate.

In families with young children where both parents work, childcare and preschool costs can reach levels that directly influence where they choose to live.

Health insurance is also a major line item in the family budget.

One of the most significant expenses that distinguishes the cost of living in America from that in Turkey is health.

According to KFF's 2025 Employer Health Assistance Survey, the annual total premium for family health insurance provided through employers averages $26,993.

The entire cost does not come directly out of the employee's pocket. While employees contribute an average of $6,850 toward the annual premium, employers cover a substantial portion of the remainder.

Nevertheless, when considering the insurance premium, deductible, and other out‑of‑pocket payments for health services, health remains an unavoidable line item in the budget planning of families living in the United States.

The Meaning of a $100,000 Salary Is Changing

The emerging picture shows that the perception of an annual $100,000 income in the United States must be reassessed according to region and family structure.

In some parts of Texas, a household income of $100,000 for two working adults and one child can exceed the basic cost of living, while the same income falls below the basic‑living threshold calculated by MIT for a family with children living in Manhattan.

Moreover, MIT's calculations are not based on luxury consumption. The aim of the calculation is to determine the income level necessary to meet basic needs.

Therefore, there is no single answer to the question 'How much salary is sufficient in America?'

Where you live, whether you have children, how many people in the household work, whether you need a car, and your health expenses become at least as significant as the salary itself.

Choosing a City Becomes Even More Important for Turkish Families

This table also points to an important point for Turks living in America or planning to move to the U.S.

In particular, high housing and child‑care costs along the New York‑New Jersey corridor heavily impact family budgets, while states such as Florida and Texas stand out with lower housing costs. In contrast, other expenses such as cars and transportation come into play.

In the end, the real cost of living in the United States is not determined solely by the question 'How much is the salary?'

The real question is gradually becoming this:

After paying all mandatory expenses from the money you earn, how much actually remains?