The living wage is the minimum income needed for a worker to cover basic living expenses — housing, food, transportation, healthcare — without public assistance. It differs from the legal minimum wage, which is set by state and federal law regardless of actual cost of living.
For 2026, MIT's Living Wage Calculator estimates living wages for a single adult with no dependents. In most states, the gap between minimum wage and living wage is significant.
2026 Minimum Wage vs Living Wage by State
| State | 2026 Min Wage | Living Wage (Single) | Gap |
|---|---|---|---|
| California | $16.90 | $22.78 | -$5.88 |
| Washington | $17.13 | $21.50 | -$4.37 |
| New York | $16.00 | $27.40 | -$11.40 |
| Connecticut | $16.94 | $21.10 | -$4.16 |
| Florida | $14.00 | $18.65 | -$4.65 |
| Texas | $7.25 | $17.42 | -$10.17 |
| Georgia | $7.25 | $16.28 | -$9.03 |
| North Carolina | $7.25 | $17.20 | -$9.95 |
| Ohio | $10.70 | $16.50 | -$5.80 |
| Michigan | $12.48 | $16.95 | -$4.47 |
Living wage data from MIT Living Wage Calculator (2026 estimates). Data reflects single adult, no children.
Why the Gap Matters for Take-Home Pay
The gap between minimum wage and living wage is even larger when you consider taxes. A worker earning $7.25/hr in Texas takes home approximately $13,926/year after federal taxes — while the MIT living wage for a single adult in Texas is about $17.42/hr ($36,234/year). The after-tax gap is more than $22,000 annually.
Minimum Wage vs. a Living Wage in 2026
A minimum wage is the legal floor an employer can pay. A living wage is different — it is the hourly income a worker actually needs to cover basic costs like housing, food, transportation, and health care in a specific area, without public assistance.
In most of the country, the minimum wage falls short of a living wage for a single adult, and the gap widens for workers supporting children. Living-wage estimates vary widely by location because housing costs differ so much between, say, rural Mississippi and metropolitan California.
At the federal minimum of $7.25 per hour, full-time work produces about $15,080 per year before taxes and roughly $13,926 after federal income tax and FICA. Most living-wage studies place the needed income for a single adult well above that figure in nearly every metro area.
Use this site's state calculators to see the actual after-tax take-home pay at each state's 2026 minimum wage, then compare it against typical local costs to judge how far a paycheck really stretches.