A Stay-at-Home Parent Could Require $106,496 in One State, While Another State’s Income Target Falls Below $69,000

Whether one parent should leave the workforce to raise a child is often a personal decision, but the financial consequences can determine whether the arrangement is practical. The New York Post’s September 10 report examined how much a working partner would need to earn to make that arrangement possible. The underlying 2026 analysis from SmartAsset puts specific annual income figures on the decision, revealing substantial differences between states.

The calculation compares a household with two working adults and one child against a family in which one adult earns the household income while the other stays home to provide care. Having a parent at home can eliminate paid childcare expenses, but the family also loses one potential paycheck. The challenge is determining whether the savings outweigh the lost earnings while still leaving enough money for the household’s basic needs.

Hawaii Has the Highest Income Requirement

Hawaii ranks as the most expensive state in SmartAsset’s 2026 analysis for a family with one working parent, one stay-at-home parent and one child. The estimated annual earnings required from the working parent reach $106,496. Hawaii is the only state-level result in the study that exceeds $105,000.

That figure illustrates the difficulty of supporting a family on one income in a high-cost location. However, it should not be interpreted as a guarantee that earning $106,496 will make every household financially comfortable. Individual expenses, including housing, transportation, healthcare and existing debt, can change what a particular family needs.

California Is the Only Other State Above $100,000

California follows Hawaii, with an estimated annual income requirement of $101,213 for the same three-person household arrangement. These are the only two states in the study where the modeled earnings target exceeds $100,000. Families considering a transition to a single-income household in either state therefore face a particularly high benchmark.

The comparison becomes more revealing when the figures are placed alongside those from less expensive states. Although the household structure remains the same, the estimated amount needed to cover basic costs varies considerably by location. That difference means a salary that supports one family in one state may fall short of the modeled needs of a similar family elsewhere.

Arkansas Records the Lowest Required Salary

At the opposite end of the ranking, Arkansas has the lowest estimated annual income requirement, at $68,869. The study places the difference between Arkansas and Hawaii at approximately $37,600 per year. That is a substantial gap for households weighing whether one parent can leave paid employment.

The lower figure does not mean every family in Arkansas can comfortably live on that salary, nor does it guarantee that families in more expensive states will struggle at every income level. It represents a comparison based on a standardized household and modeled living costs. A family’s own circumstances can produce a very different result from the state average.

Mississippi and Kentucky Also Fall Near the Bottom

Mississippi requires an estimated $70,054 annually to support two adults and one child with one working parent. Kentucky follows closely, with a corresponding target of $70,179. Both states therefore sit near the lower end of the ranking, alongside Arkansas.

The figures show how far the estimated cost of maintaining a single-income household can vary across the country. The difference between Mississippi and Hawaii is more than $36,000 per year, despite the study using the same basic family arrangement. For parents evaluating a move or comparing household budgets across states, that contrast highlights why national salary averages can offer limited guidance.

The Numbers Come From a Cost Model, Not a Family Survey

SmartAsset’s findings are based on data from the MIT Living Wage Calculator, using data available as of February 2026. Rather than surveying families about their decisions, the analysis compares modeled living costs for a household with one working adult against costs for a household with two working adults. The resulting figures are estimates of the earnings needed to cover basic expenses under the specified circumstances.

The MIT Living Wage Calculator’s methodology explains that its estimates are geographically specific and account for differences in family composition and local costs. SmartAsset also cautions that its state rankings are point estimates from one cost model, not results from a statistical survey. States with very small differences in their estimated requirements should not automatically be treated as meaningfully different in affordability.

Basic Living Expenses Drive the Calculation

The underlying living-cost framework includes food, housing, childcare, healthcare, transportation, other necessities and taxes. Its purpose is to estimate the income a full-time worker needs to help cover a household’s basic costs in a particular location. This provides a consistent framework for comparing family arrangements across states.

That distinction matters because the study is not measuring the income necessary to afford every lifestyle preference a household might have. A family hoping to purchase a larger home, take regular vacations, pay for private schooling or build substantial savings may need considerably more than the modeled threshold. The published figures are best understood as basic-income estimates rather than universal definitions of financial comfort.

Childcare Savings Are a Major Part of the Equation

One of the main financial advantages of having a parent stay home is the potential reduction in paid childcare expenses. A separate Child Care Aware of America’s analysis of 2024 prices reported a national average annual childcare price of $13,128. Its analysis also found that this average represented about 10% of the median income of married couples with children and 35% of the median household income of single parents with children.

Those national figures provide useful context, but they are not the amount every household pays or the exact savings every family would receive by having a parent stay home. Actual expenses depend on location, the child’s age and the type of care required. Consequently, families facing high childcare bills may experience a different financial trade-off from those whose existing care arrangements cost much less.

Massachusetts Has the Largest Gap Between the Two Household Arrangements

Massachusetts stands out for the difference between the modeled income requirements for one-income and two-income households. SmartAsset estimates that the single-income family needs $99,965 annually, while the comparable household with two working parents needs $131,498 in combined earnings. That represents a 31.5% increase for the two-working-parent arrangement, the largest gap identified in the study.

Childcare expenses help explain why the difference between these household models can be substantial. Massachusetts has particularly high childcare costs, and SmartAsset points to infant care in Middlesex County as an example, with the median annual cost estimated at more than $27,000 in 2023. When paid care accounts for a large share of a family’s budget, the additional earnings from a second job must be weighed against the cost of maintaining that care.

Mississippi Has the Smallest Difference Between the Two Models

Mississippi presents a different picture from Massachusetts. The study estimates that a family with one working parent needs $70,054 annually, compared with $79,040 in combined earnings for a household with two working parents. The gap is 12.8%, making it the smallest difference among the states examined.

This result does not mean childcare is irrelevant to families in Mississippi, or that working a second job produces little financial benefit in every household. It means the modeled income difference between these two particular arrangements is relatively small compared with the differences in other states. The figures demonstrate that childcare savings can influence the financial case for staying home, but their impact varies according to local costs.

Several Other States Require More Than $85,000

Outside the two states exceeding $100,000, several locations still have substantial modeled income requirements. Connecticut’s estimate reaches $91,083, while Washington’s is $90,106. Colorado also falls in the higher-cost group, with an estimated requirement of $86,403 annually.

These figures reinforce the importance of looking beyond the broad assumption that one income should be enough to support a family. Even when the second parent’s childcare expenses disappear, the remaining earner must still cover the household’s other modeled costs. The relevant question is not simply whether a salary seems high in isolation, but whether it can support the family’s actual expenses in its location.

The Study Assumes a Family With One Child

An important limitation is that the headline figures concern a household made up of two adults and one child. They should not be applied automatically to families with two or three children, whose childcare arrangements and other expenses may differ. The analysis provides a consistent comparison for the household it models, rather than a personalized estimate for every possible family structure.

The needs of a household can also change as a child grows or family circumstances change. Infant care, school-age supervision and other arrangements do not necessarily cost the same amount, and families may have expenses that the standard model does not reflect fully. Anyone considering leaving a job should therefore treat the state figure as a starting point for a more detailed household budget.

Leaving a Job Can Have Consequences Beyond Monthly Income

The financial trade-off is not limited to the paycheck a family gives up. SmartAsset identifies potential losses involving retirement contributions, employer-provided health benefits and the stay-at-home parent’s earnings history for Social Security. These factors can matter even when a household has enough income to cover its immediate bills.

Retirement savings and employment benefits may be easy to overlook when comparing a salary with the cost of childcare. However, a family relying on one income may have to reconsider how it funds retirement, maintains health coverage and builds financial reserves. The income needed to cover regular expenses is only one part of the decision, particularly when the arrangement could last for years.

Tax Benefits Do Not Automatically Make Staying Home Affordable

Families may also consider tax benefits when deciding whether one parent should remain employed. The study notes that there is no federal tax credit specifically for being a stay-at-home parent, although qualifying households may be eligible for the Child Tax Credit under the usual rules. Eligibility depends on the requirements for the credit, not simply on whether one adult has stopped working.

The Internal Revenue Service’s Child Tax Credit guidance explains the qualifying-child requirements and other conditions that apply. Any credit a family receives may help with its finances, but it should not be treated as a substitute for the earnings lost when a parent leaves a job. Tax benefits are one element of the calculation, rather than a solution to the entire affordability question.

The Right Salary Depends on the Household, Not Just the State

A statewide estimate cannot account for every family’s housing payment, debt obligations, insurance arrangements, savings goals or employment benefits. Two households earning the same salary in the same state can face very different financial pressures. One may already have affordable housing and strong savings, while another may be managing large recurring expenses.

That is why families should compare their actual budgets before deciding whether a single income is sufficient. The most useful calculation considers both the income that would disappear and the expenses that would be reduced, alongside the benefits the household might lose. A state ranking can help set expectations, but it cannot replace a household-specific assessment.

The Main Takeaway Is the Size of the Financial Trade-Off

SmartAsset’s 2026 analysis places the annual earnings target for a family with one stay-at-home parent and one child between $68,869 in Arkansas and $106,496 in Hawaii. California is the only other state in the study with a threshold above $100,000, while several states fall between the two extremes. The variation illustrates how much a family’s location can influence the financial feasibility of relying on a single income.

Ultimately, there is no universal salary that guarantees a family can comfortably support a stay-at-home parent. The answer depends on living costs, childcare savings, household benefits, family size and individual financial obligations. The study offers a useful starting point, but the final decision must reflect the family’s own circumstances rather than a national headline or a single state-level figure.