The cost of living can vary by more than 100% between the cheapest and most expensive US states. Understanding these differences is crucial for financial planning.
How We Measure Cost of Living
We use a composite index that weighs housing (30%), groceries (15%), utilities (10%), transportation (10%), healthcare (10%), and miscellaneous goods and services (25%). The national average is set at 100.
Most Affordable States
Mississippi (83.3), Oklahoma (85.8), Kansas (86.3), Alabama (87.9), and West Virginia (84.1) consistently rank as the most affordable states.
Most Expensive States
Hawaii (192.9), California (149.9), New York (139.1), Massachusetts (135.0), and Oregon (130.7) top the list of most expensive states.
Regional Trends
The South and Midwest generally offer the lowest costs, while the West Coast and Northeast are typically the most expensive. However, there are affordable pockets in every region.
The Tax Factor
States with no income tax (FL, TX, NV, WA, WY, SD, AK, TN, NH) can significantly reduce your overall cost burden, though they may compensate with higher sales or property taxes.
Methodology
Our data combines information from the Bureau of Economic Analysis, Census Bureau, and Bureau of Labor Statistics to create comprehensive, up-to-date cost comparisons.