Are You Still Earning a 'Living Wage' in Tennessee, Other States? How to Tell

New data shows even with minimum wage increases, many workers may not be making enough to cover basic costs.

Mar. 15, 2026 at 9:27pm

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A new report from the Massachusetts Institute of Technology (MIT) has updated its Living Wage Calculator, which estimates the hourly income needed to cover the basic costs of living in different states and cities across the U.S. The data shows that even in states that have raised their minimum wages, many workers are still not earning a 'living wage' that can cover food, housing, transportation, childcare, healthcare, and other essential expenses.

Why it matters

The living wage data provides important insight into the economic challenges facing workers, especially in high-cost areas. As inflation and the cost of living continue to rise, the gap between minimum wages and living wages is growing, putting financial strain on families and highlighting the need for policies that ensure workers can earn enough to meet their basic needs.

The details

The MIT Living Wage Calculator looks at the typical expenses in a given location, including food, housing, transportation, childcare, healthcare, and taxes, to determine the hourly income needed for a family to have a modest but adequate standard of living. For example, in San Jose, California, an individual with no children would need to earn at least $37.93 per hour, while a family of four in the same city would require both working adults to earn at least $48.15 per hour. In contrast, the minimum wage in California is $15 per hour. The data shows similar disparities in other states, with the living wage often being significantly higher than the legal minimum wage.

  • The MIT Living Wage Calculator was most recently updated in 2026.

The players

Massachusetts Institute of Technology (MIT)

The university that developed the Living Wage Calculator to estimate the hourly income needed to cover basic living costs in different locations across the United States.

Gregory Daco

Chief economist at consulting firm EY-Parthenon, who estimated that the recent rise in gas prices could push monthly inflation to as high as 1% in March 2026, the highest monthly increase in four years.

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What they’re saying

“That's a significant shock in and of itself.”

— Gregory Daco, Chief Economist (Associated Press)

The takeaway

The growing gap between minimum wages and living wages across the U.S. highlights the financial challenges facing many workers, especially in high-cost areas. This data underscores the need for policies that ensure workers can earn enough to cover their basic living expenses and maintain a modest but adequate standard of living.