15 States Where the Middle Class Is Thriving

The definition of “middle class” has changed over the decades. Most middle-class households earn around $80,000 a year. However, you could fall into this category if you make anywhere from $45,000 to $145,000 annually, according to H&R Block.

For the most part, people in the middle class can afford a reasonable standard of living. Many of these individuals own their own homes and vehicles, though they might use loans to afford such things.

They also typically have some kind of an investment portfolios, though how risky or diversified they are depends on the individual. Not only that, but middle-class households often have at least two sources of income to help maintain their lifestyle or even build wealth over time.

Middle-class households that earn on the lower end of the spectrum might struggle to afford the higher cost of living in certain areas. But, like anyone else, these individuals can be found all throughout the country, particularly along the East and West coasts.

Whether you consider yourself to be middle class or not, you might be wondering where people in this income — and status — tier make the most.

To determine this, GOBankingRates compiled data from the Bureau of Labor Statistics Consumer Expenditure Survey and the U.S. Census American Community Survey. This data was used to organize the states based on what remains after annual cost-of-living expenses (housing, groceries, utilities, healthcare and transportation) are deducted from annual median income.

Here are the top 15 states (including Washington, D.C.) where middle-class households are thriving.

• Total number of middle class households: 3,397,156
• Household median income: $89,703
• 22% federal tax rate in 2023: $19,735
• Annual median expenditures (including housing): $43,195
• What’s left for saving, travel, entertainment, etc.: $26,773

New Jersey’s COL index is 110.3, a bit higher than the national average. Housing accounts for most of that spike, costing 26.4% more than the U.S. average.

• Total number of middle class households: 2,294,270
• Household median income: $91,431
• 22% federal tax rate in 2023: $20,115
• Annual median expenditures (including housing): $45,002
• What’s left for saving, travel, entertainment, etc.: $26,314

Higher-income households could live comfortably in Maryland, despite the 114.8 COL index.

• Total number of middle class households: 2,229,100
• Household median income: $77,706
• 22% federal tax rate in 2023: $17,095
• Annual median expenditures (including housing): $36,058
• What’s left for saving, travel, entertainment, etc.: $24,553

The COL index is just 94.4 in Minnesota, thanks to a housing COL index of just 82.4.

• Total number of middle class households: 3,248,528
• Household median income: $80,615
• 22% federal tax rate in 2023: $17,735
• Annual median expenditures (including housing): $39,141
• What’s left for saving, travel, entertainment, etc.: $23,739

Coming in near the middle as far of the cost of living goes is Virginia, with an overall index of 101.4.

• Total number of middle class households: 540,498
• Household median income: $83,449
• 22% federal tax rate in 2023: $18,359
• Annual median expenditures (including housing): $43,432
• What’s left for saving, travel, entertainment, etc.: $21,658

New Hampshire’s COL index is 115.7, with utilities costing more 27.9% more than the national average.

• Total number of middle class households: 2,227,932
• Household median income: $80,184
• 22% federal tax rate in 2023: $17,640
• Annual median expenditures (including housing): $41,383
• What’s left for saving, travel, entertainment, etc.: $21,161

Similar to Utah, the COL index in Colorado is 106.9, but the average middle-class household can still live quite comfortably in many parts of the state.

• Total number of middle class households: 1,397,324
• Household median income: $83,572
• 22% federal tax rate in 2023: $18,386
• Annual median expenditures (including housing): $44,776
• What’s left for saving, travel, entertainment, etc.: $20,410

With a COL index of 113.9, Connecticut still has several affordable locations for people earning around $80,000 a year.

• Total number of middle class households: 1,033,651
• Household median income: $79,133
• 22% federal tax rate in 2023: $17,409
• Annual median expenditures (including housing): $40,589
• What’s left for saving, travel, entertainment, etc.: $21,135

Utah’s COL index is slightly higher than the national average at 104.5. That is driven by high housing (113.6) and transportation (109.3) costs.

• Total number of middle class households: 4,930,255
• Household median income: $72,563
• 22% federal tax rate in 2023: $18,128
• Annual median expenditures (including housing): $34,694
• What’s left for saving, travel, entertainment, etc.: $21,906

Illinois’ overall cost-of-living index is 91.8. Housing is especially affordable, at 78.8% of the national average.

• Total number of middle class households: 2,931,841
• Household median income: $82,400
• 22% federal tax rate in 2023: $18,128
• Annual median expenditures (including housing): $46,346
• What’s left for saving, travel, entertainment, etc.: $19,741

The seventh most expensive state to live in is Washington, with a COL index of 115.7. Even so, certain towns — especially on the east side of the state — are still affordable to middle-class earners.

• Total number of middle class households: 381,097
• Household median income: $72,724
• 22% federal tax rate in 2023: $15,999
• Annual median expenditures (including housing): $38,200
• What’s left for saving, travel, entertainment, etc.: $18,525

The cost of living in Delaware is just above the national average at 100.8. Housing is quite affordable on average, with an index of 95.9.

• Total number of middle class households: 310,104
• Household median income: $93,547
• 22% federal tax rate in 2023: $20,580
• Annual median expenditures (including housing): $60,046
• What’s left for saving, travel, entertainment, etc.: $12,921

The overall COL index in Washington, D.C., is 145.3. While not as many middle-class households thrive here, there are still those that do.

• Total number of middle class households: 230,653
• Household median income: $68,002
• 22% federal tax rate in 2023: $14,960
• Annual median expenditures (including housing): $35,268
• What’s left for saving, travel, entertainment, etc.: $17,774

Wyoming has a COL index of 93.2 — everything but groceries and healthcare are cheaper than the national average.

• Total number of middle class households: 426,769
• Household median income: $74,489
• 22% federal tax rate in 2023: $16,388
• Annual median expenditures (including housing): $42,100
• What’s left for saving, travel, entertainment, etc.: $16,001

Rhode Island’s COL index is on the higher end at 112, but there are still very affordable cities where the middle class live and thrive.

• Total number of middle class households: 10,239,341
• Household median income: $67,321
• 22% federal tax rate in 2023: $14,811
• Annual median expenditures (including housing): $35,085
• What’s left for saving, travel, entertainment, etc.: $17,425

Methodology: In order to find the top states where the middle class is thriving, GOBankingRates analyzed every state across a variety of factors, including; [1] Cost-of-living indexes sourced from Missouri Economic and Research Information Center, [2] average expenditures as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, [3] average home value as sourced from Zillow Home Value Index and [4] the median household income as sourced from the US Census American Community Survey. The difference in median household income from each state to the national median was calculated to find places where the middle class has more spending power and therefore is more likely to be thriving. All data was collected on and is up to date as of Nov. 27, 2023.