A six-figure income no longer guarantees a comfortable lifestyle in many parts of the United States. According to new research from fintech company MoneyLion, earning around $100,000 per year qualifies as lower-middle class in 12 states, highlighting the impact of soaring living costs.
States Where $100,000 Is Lower-Middle Class
The analysis reveals that in seven high-cost states, even incomes well into six figures are considered lower-middle class. Massachusetts tops the list, where a salary of $116,476 is needed to be lower-middle class. New Jersey, Maryland, Hawaii, California, New Hampshire, and Washington follow closely. Colorado, Utah, Connecticut, Alaska, and Virginia also make the list, with Virginia requiring about $102,000 annually to remain in this bracket.
Economic Anxiety Amid Inflation
The findings come as Americans express deep unease over the economy. Only 21% approve of President Trump's handling of inflation, according to a Reuters/Ipsos poll, contributing to a 34% overall approval rating—the lowest of his second term. A Gallup poll shows 55% of adults believe their financial situation is worsening, driven by rising costs of energy, housing, healthcare, and education. Remarkably, more Americans are worried about their finances now than during the 2008 Great Recession.
Impact of the Iran War on Prices
The ongoing war with Iran has exacerbated cost-of-living pressures, pushing average US gas prices to nearly $4.23 per gallon—the highest since the conflict began. The White House downplays the impact, with assistant press secretary Olivia Wales stating that prices will drop once traffic in the Strait of Hormuz normalizes. However, experts warn that price hikes may persist for at least eight months after the conflict ends.
These economic challenges are expected to be a major theme in the 2026 midterm elections, as voters grapple with stagnant wages and rising expenses.
