Earning six figures in these states won’t stop you from living paycheck to paycheck.
For years, $100,000 was considered a solid benchmark—something that symbolized comfort, stability, and financial breathing room. But in some parts of the country, that once-impressive figure barely keeps the lights on. Soaring housing costs, relentless inflation, healthcare premiums, and childcare expenses have all chipped away at what used to be a decent income. In these twelve states, families earning six figures are discovering they’re still stretched thin, constantly doing the math to make everything fit.
The numbers look good on paper, but reality hits harder. It’s not about lavish spending—it’s the cost of staying above water. You might own a home, drive a decent car, and take a modest vacation, but even those small wins come with strings attached: credit card debt, delayed retirement savings, or zero emergency cushion. It’s a frustrating truth that many hardworking people are facing in high-cost areas—where $100K has become the new minimum just to function.
1. California turns six figures into survival mode.
Living in California with a $100K income sounds like a dream until rent, taxes, and childcare punch you in the face, according to Scott Cohn at CNBC. In cities like San Francisco, San Diego, and Los Angeles, housing costs alone can eat up 40–50% of that salary. Even modest homes often come with eye-popping price tags, leaving renters stuck and buyers priced out entirely. You could be making more than the national median and still feel like you’re drowning.
It’s not just housing that drains your wallet. Gas prices, groceries, and basic services cost more, even in smaller towns. Public schools can be underfunded in some areas, pushing middle-class families toward expensive private options. Add in hefty state taxes, and that six-figure salary loses its luster fast. For many Californians, the paycheck comes in, the bills go out, and there’s not much left to show for it.
2. New York households feel squeezed by every expense.
New York is iconic, but financially, it’s exhausting, as reported by the authors at Debt Wave. In Manhattan or Brooklyn, a $100K salary might barely get you a decent apartment. Rents often exceed $3,000 a month, and groceries aren’t far behind. It’s not unusual to spend $20 on a sandwich or pay double for everyday items. The cost of simply existing here adds up faster than you’d expect.
Even upstate or in the outer boroughs, expenses pile up. Property taxes in the suburbs can feel brutal, while commuting costs—train fares, tolls, parking—chip away at what’s left. Want to send your kid to daycare or summer camp? Brace yourself for fees that feel designed for the ultra-wealthy. In New York, six figures might pay your bills, but it won’t buy you peace of mind.
3. Hawaii makes paradise painfully expensive.
Hawaii offers ocean views, sunshine, and culture—but it comes at a steep price, as stated by the authors at Quicken Loans. Groceries are shipped in, so a gallon of milk can run close to $8. Housing is limited and incredibly competitive, with median home prices well over $800,000. A $100K income evaporates quickly in this setting, especially if you’re raising a family or dealing with medical bills.
Utilities, gas, and imported goods all cost more. Locals often hold multiple jobs just to stay afloat, and even those earning more than the national average feel like they’re living on the edge. There’s beauty everywhere, but behind the postcard lifestyle is a constant financial struggle. Earning six figures in Hawaii doesn’t mean you’re living well—it just means you’re barely holding it together.
4. Massachusetts drains your paycheck with every deduction.
Massachusetts blends history with high costs. Boston is notorious for its housing prices, but the expenses don’t stop there. State income tax, property taxes, and healthcare premiums all take a significant bite out of a $100K salary. Even if you’re frugal, you’ll still feel like money slips through your fingers.
Public transportation is helpful, but it’s not free—and parking fees or car ownership still come with city-sized bills. Add in the cost of childcare, college savings, and just maintaining a modest lifestyle, and you’ve got a recipe for financial strain. Massachusetts offers a great quality of life, but living there on six figures often feels more like endurance than ease.
5. Maryland’s affluence masks its middle-class stress.
Maryland boasts strong schools, good jobs, and a proximity to D.C.—but all that comes with a hefty price tag. In counties like Montgomery or Howard, $100K doesn’t go very far. Housing is high, private school is common, and taxes eat away at take-home pay. Even dual-income families report struggling to build savings or keep up with rising costs.
There’s also the pressure to keep up with a “comfortable” standard of living—vacations, extracurriculars, tutoring—all things that add up quickly. You’re not poor, but you’re not financially free either. For many Marylanders, life feels like a balancing act, where one unplanned expense can throw everything into chaos.
6. New Jersey hits hard with property taxes and everything else.
New Jersey isn’t just expensive—it’s sneaky expensive. Home values are high, but the real kicker is property taxes, which are the highest in the country. Even in middle-income towns, your annual tax bill might be $10,000 or more. A $100K salary disappears fast under that kind of pressure.
Utilities, car insurance, and childcare costs aren’t gentle either. Want to get to work? Prepare to pay for toll roads, train fares, or hours in traffic. Living in New Jersey often means you’re close to opportunity—New York or Philly—but that proximity comes at a steep financial cost. It’s a grind, not a glide, even at six figures.
7. Washington’s cost of living keeps creeping up.
Seattle gets a lot of attention, but it’s not the only place in Washington where a $100K salary struggles. The state has no income tax, which helps—but it makes up for it with inflated housing and high sales taxes. Groceries, childcare, and services cost more than most people expect, especially in the Puget Sound region.
Even tech workers are feeling the squeeze as home prices climb and rentals disappear. You might make good money, but it doesn’t stretch the way it used to. For families who aren’t stockpiling equity or bonuses, life in Washington has shifted from “comfortable” to “barely manageable.” Every year brings new expenses and fewer options.
8. Colorado families are losing their financial breathing room.
Colorado used to be an affordable dream—mountains, cities, and space to grow. But in recent years, Denver’s cost of living has surged, and other metro areas are catching up. A $100K salary now gets absorbed by housing, healthcare, and escalating utility bills. Rent for a decent apartment can hit $2,500 or more, leaving little left over.
The state’s rapid growth has also strained infrastructure and services. Childcare waitlists are long, gas prices are high, and eating out is no longer a casual treat. Families are finding that even with “good jobs,” they’re skating dangerously close to the edge. That dream of financial freedom? It’s been replaced with tight budgets and cautious spending.
9. Oregon’s charm comes with a steep price tag.
Oregon offers lush forests, progressive politics, and a laid-back lifestyle—but the financial reality is much less relaxed. Portland’s housing market has exploded, and even smaller cities like Eugene and Bend have followed suit. Earning $100K used to mean security. Now it barely covers the basics after taxes and rent.
Add in high utility costs, gasoline taxes, and one of the nation’s highest income tax rates, and your paycheck shrinks fast. Families are downsizing, delaying homeownership, or skipping vacations just to stay afloat. The vibe may be chill, but the budget stress is anything but. Even six-figure earners are checking their bank balances before every purchase.
10. Illinois residents face mounting hidden costs.
Illinois has a complicated financial landscape. Chicago is the epicenter of high costs, but even in the suburbs, property taxes can shock you. The state income tax seems manageable at first glance, but when combined with high local levies, utility bills, and school fees, the total burden adds up quickly. A $100K income might not even qualify for middle-class comfort.
Public services are inconsistent, and infrastructure isn’t always reliable. Combine that with high insurance rates and surging rent, and your once-respectable salary begins to feel underwhelming. People aren’t necessarily living beyond their means—they’re just trapped in a cycle of unavoidable expenses that eat up every dollar they earn.
11. Connecticut’s wealth hides deep affordability issues.
Connecticut looks polished and well-off, but it’s also one of the most financially demanding states. Median home prices are high, property taxes are aggressive, and utility bills are some of the steepest in the country. Even in towns that aren’t flashy, the cost of living outpaces what a $100K salary can comfortably handle.
You might work hard, earn well, and still feel like you’re falling behind. Healthcare costs, private school tuitions, and the price of basics like groceries quietly pile on. There’s a sense of needing to “keep up,” which only adds pressure. In a state full of wealth, being middle class can feel like being constantly on edge.
12. Alaska drains your budget just to stay warm.
Alaska offers breathtaking nature and a unique lifestyle—but it’s expensive in ways most people don’t expect. Groceries are sky-high due to shipping costs, and heating your home through those brutal winters costs a small fortune. Even with no state income tax, your $100K salary can vanish in a flash.
Healthcare access is limited and expensive, travel to the lower 48 is a major undertaking, and everyday conveniences can be both rare and overpriced. Residents pay for the privilege of isolation with higher costs on nearly everything. Earning six figures in Alaska might sound impressive, but the reality is much colder—financially and otherwise.