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Where Workers Have the Most (and Least) Extra Cash for the Holidays in 2026
Have you ever wondered how much people are spending during the holiday season? If you know the state they reside in, it can provide significant insight into their disposable income for gifts and celebrations.
Your location within the United States greatly influences your financial situation. Our analysis of the cost of living across different states underscores substantial regional disparities.
However, cost of living alone doesn’t tell the entire story. Often, states with a higher cost of living also offer higher salaries, which impacts overall affordability. When we discuss affordability, we essentially refer to the amount of money left over after essential expenses are met. Ultimately, it doesn’t matter how inexpensive an item is if you lack the funds to purchase it.
With this context, we analyzed data to determine the most and least affordable states for workers today.
We utilized MIT’s Living Wage Calculator to establish the living wage, defined as the income required annually to support two adults and one child.
Next, we gathered average annual wage data for each state from the BLS. By subtracting the cost of living from the average annual wage, we identified states where workers can retain more of their earnings. A higher positive difference indicates more disposable income available beyond basic needs.
We have compiled a complete list of all 50 states, but first, let’s highlight the five most affordable states to live in 2026.
The Top 5 Most Affordable States
1. Maine
Average Annual Salary: $61,783
Cost Of Living: $51,305
Difference: $10,478
Maine ranks #22 in terms of cost of living. However, its healthy average salary of $61,783 secures its position as the most affordable state, providing residents with a cushion of $10,478 beyond their living expenses.
2. Alaska
Average Annual Salary: $64,478.46
Cost Of Living: $54,400
Difference: $10,078.46
Alaska, while often perceived as expensive, offers an average salary that makes living here surprisingly affordable. With no state income tax, Alaskans can save significantly, earning the state the #2 spot on our list.
3. Rhode Island
Average Annual Salary: $62,562
Cost Of Living: $53,240
Difference: $9,322
Rhode Island, the second New England state to feature in our list, offers an average salary that supports its affordability, despite some cities being pricier.
4. Ohio
Average Annual Salary: $53,991.31
Cost Of Living: $45,853
Difference: $8,138.31
Ohio ranks #4, boasting a low cost of living that outweighs its lower average salary, making it an attractive option for many residents. Affordability is consistent throughout the state.
5. Kentucky
Average Annual Salary: $51,286.70
Cost Of Living: $43,308
Difference: $7,978
Despite having the lowest average salary on our list, Kentucky’s low cost of living allows for a comfortable lifestyle, making it affordable for residents.
The 5 Least Affordable States
1. Florida
Average Annual Salary: $51,147.45
Cost Of Living: $52,206
Difference: -1,058.55
While Florida is known for its warm weather and tourism, many workers struggle financially due to an average annual salary that falls short of the cost of living.
2. Maryland
Average Annual Salary: $57,266.06
Cost Of Living: $58,178
Difference: -911.94
Maryland’s proximity to costly Washington, D.C., drives up living expenses, resulting in an average annual income that is below the cost of living.
3. Delaware
Average Annual Salary: $52,677.39
Cost Of Living: $53,112
Difference: -434.60
Delaware struggles with affordability, as its average annual salary does not meet the rising costs of living in the state.
4. Hawaii
Average Annual Salary: $60,820.87
Cost Of Living: $60,700
Difference: $120.87
Although Hawaii boasts a high average salary, its exorbitant cost of living constrains workers’ financial flexibility.
5. Virginia
Average Annual Salary: $54,551.70
Cost Of Living: $54,264
Difference: $287.71
Virginia’s average salary provides only a slim margin over the cost of living, highlighting the financial challenges many residents face.
Didn’t find your state in the top or bottom five? Check out the complete list below to see where your state ranks.
Full List of States from Most Affordable to Least
Understanding Affordability in 2026
While this overview provides a broad perspective on affordability across states, personal finances are inherently individual. A person earning significantly above the state average might thrive in a less affordable area, while someone earning minimum wage in Maine may find it challenging to make ends meet.
Author
Kathy is the head of content at Zippia with a knack for engaging audiences. Prior to joining Zippia, Kathy worked at Gateway Blend growing audiences across diverse brands. She graduated from Troy University with a degree in Social Science Education.
