6 States the Middle Class Should Be Fleeing and Why
In some parts of the US — including some major cities — a $100,000 household income can buy you a comfortable middle-class or even upper middle-class lifestyle. But not in these states below.
If you want to get ahead, to actually save and build wealth, experts recommend fleeing these states as quickly as possible.
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1. Hawaii
Among MERIC’s state rankings for cost of living, Hawaii ranked dead last.
The news for Hawaiians doesn’t get better from there. The state charges the highest tax burden (combining property taxes, income taxes and sales and excise taxes) of any state in the nation, per a 2026 WalletHub analysis.
Meanwhile, Zillow pegs the average home price at $833,877. You just can’t escape the spending in Hawaii — everything costs an arm and a leg.
2. California
The Golden State will also sap your savings and income at every turn. The MERIC analysis ranks it third-worst in the country for cost of living, and homes average $773,735 per Zillow.
Then there are the taxes, ranking 11th highest in the country. Beyond the state income tax, many California cities layer on additional income taxes, as well.
3. Massachusetts
Residents suffer the second-highest cost of living in the country in Massachusetts. That includes painfully high housing costs, with homes averaging $669,053.
“Sure, the salaries are higher than average, but the cost of housing has consistently risen faster than people's paychecks,” notes Devin Henry of Nomadic Real Estate.
Expect higher than average taxes too, with a total tax burden of 8.82%.
4. New Jersey
The Garden State ranks 45th for cost of living, making it hard for anyone on a medium salary to live a middle-class life. Homes average $584,072, compared to the national average of $371,774.
The high tax burden doesn’t do residents any favors either. New Jersey charges the eighth-highest tax burden in the country at 9.52%. In particular, it’s notorious for its high property taxes.
“Housing coupled with taxes, transportation, insurance premiums, and daily expenses can make it all but impossible for a typical family to make ends meet or save enough to even get ahead,” warns Bob McKay of Together Credit Union.
5. New York
Affordability doesn’t get any better across the Hudson River. New York ranks 47th for cost of living, and charges the second highest tax burden in the country at 12.39%. Homes cost an average of $527,312, and that hides the extremes of New York City amidst the state average.
The high cost of living and taxes help explain why so many residents have fled the state. Data from the National Taxpayers Union Foundation found that New York lost nearly 2 million residents over a decade, the most of any state. And they aren’t all retirees, either. The Empire State lost the second highest number of young residents over the same period.
6. Connecticut
There’s no escaping the brutally high cost of living in “the Tri-State Area.” Connecticut ranks 42nd for cost of living, with homes averaging $453,319. Residents also pay the 17th highest taxes in the country.
Henry emphasizes Connecticut’s property taxes in particular: “The crazy part is that a $350,000 home in Connecticut could cost you more annually in tax than what you would pay on a $500,000 home in a lower tax state," he said.
Sure, there’s more to where you live than affordability. But if you can’t actually save any money, you’ll never build a nest egg for retirement or make progress financially. For that matter, many cities and states cost so much that middle earners can’t live a middle-class lifestyle, leaving them struggling to get by even as they earn a decent salary.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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