6 States Where You Need an Income of Less Than $40K To Be Considered Middle Class

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What does it take to be a middle-class earner in America? The answer isn’t straightforward.

Differences in cost of living and income vary widely from one state to another, and those variances impact whether you’re part of the middle class or not. In other words, a $40,000 income in an expensive state like New York won’t buy you nearly as much as it might in rural Arkansas.

GOBankingRates recently conducted a study examining household income across the U.S. We found six states where earning less than $40,000 puts you squarely in the middle-class category. 

Here’s a birds-eye view of the income and cost-of-living factors in the six states where you’re squarely in the middle class if your income falls below $40,000. 

1. Alabama

• Median household income: $59,609
• Lower end of middle-class income: $39,739
• Higher end of middle-class income: $119,218
• Groceries: 5.6% cheaper than the national average
• Healthcare: 18.9% more expensive than the national average
• Housing: 44.4% cheaper than the national average
• Utilities: 1.2% more expensive than the national average
• Transportation: 14.1% cheaper than the national average

2. Arkansas

• Median household income: $56,335
• Lower end of middle-class income: $37,556
• Higher end of middle-class income: $112,670
• Groceries: 7.3% cheaper than the national average
• Healthcare: 7.9% cheaper than the national average
• Housing: 50.2% cheaper than the national average
• Utilities: 4.4% cheaper than the national average
• Transportation: 18.4% cheaper than the national average

3. Louisiana

• Median household income: $57,852 
• Lower end of middle-class income: $38,568
• Higher end of middle-class income: $115,704
• Groceries: 7.3% cheaper than the national average
• Healthcare: 13.2% more expensive than the national average
• Housing: 35.1% cheaper than the national average
• Utilities: 10.1% cheaper than the national average
• Transportation: 8.2% more expensive than the national average

4. Mississippi

• Median household income: $52,985
• Lower end of middle-class income: $35,323
• Higher end of middle-class income: $105,970
• Groceries: 5.1% cheaper than the national average
• Healthcare: 1.9% more expensive than the national average
• Housing: 51.4% cheaper than the national average
• Utilities: 2.9% cheaper than the national average
• Transportation: 16.6% cheaper than the national average

5. New Mexico

• Median household income: $58,722
• Lower end of middle-class income: $39,148
• Higher end of middle-class income: $117,444
• Groceries: 6.7% cheaper than the national average
• Healthcare: 17.4% cheaper than the national average
• Housing: 15.7% cheaper than the national average
• Utilities: 0.4% more expensive than the national average
• Transportation: 15.4% cheaper than the national average

6. West Virginia

• Median household income: $55,217
• Lower end of middle-class income: $36,811
• Higher end of middle-class income: $110,434
• Groceries: 4.2% cheaper than the national average
• Healthcare: 27% more expensive than the national average
• Housing: 60.7% cheaper than the national average
• Utilities: 14.1% cheaper than the national average
• Transportation: 9.9% cheaper than the national average

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