Cost of Living by State 2026
Updated March 2026
Mississippi is the cheapest state. Hawaii is the most expensive. $100 in Mississippi buys what $185 buys in Hawaii. Full rankings for all 50 states below.
Cost of Living Index - All 50 States
National average = 100. Under 100 = cheaper than average. Over 100 = more expensive.
Updated March 2026
| State | Index | Median Home Price | Avg Monthly Rent |
|---|---|---|---|
| Mississippi | 84 | $160,000 | $850 |
| Oklahoma | 85 | $185,000 | $900 |
| Kansas | 86 | $190,000 | $910 |
| Alabama | 87 | $175,000 | $920 |
| West Virginia | 87 | $145,000 | $830 |
| Arkansas | 88 | $170,000 | $870 |
| Missouri | 88 | $195,000 | $950 |
| Iowa | 89 | $200,000 | $940 |
| Indiana | 90 | $210,000 | $970 |
| Tennessee | 90 | $250,000 | $1,100 |
| Kentucky | 91 | $195,000 | $960 |
| Ohio | 91 | $215,000 | $990 |
| Michigan | 92 | $220,000 | $1,020 |
| Nebraska | 92 | $215,000 | $970 |
| South Dakota | 92 | $245,000 | $970 |
| North Dakota | 93 | $240,000 | $980 |
| Georgia | 93 | $280,000 | $1,200 |
| Louisiana | 93 | $185,000 | $970 |
| Wisconsin | 94 | $245,000 | $1,050 |
| Texas | 95 | $295,000 | $1,300 |
| South Carolina | 95 | $260,000 | $1,100 |
| North Carolina | 96 | $280,000 | $1,200 |
| New Mexico | 96 | $255,000 | $1,050 |
| Minnesota | 98 | $290,000 | $1,200 |
| Pennsylvania | 99 | $265,000 | $1,150 |
| Illinois | 99 | $260,000 | $1,200 |
| Montana | 100 | $375,000 | $1,250 |
| Florida | 101 | $380,000 | $1,700 |
| Arizona | 101 | $360,000 | $1,500 |
| Idaho | 101 | $375,000 | $1,350 |
| Virginia | 102 | $355,000 | $1,500 |
| Delaware | 103 | $330,000 | $1,400 |
| Nevada | 104 | $390,000 | $1,600 |
| Wyoming | 104 | $310,000 | $1,100 |
| Maine | 105 | $340,000 | $1,300 |
| Vermont | 108 | $345,000 | $1,350 |
| Alaska | 110 | $320,000 | $1,400 |
| New Hampshire | 111 | $415,000 | $1,600 |
| Colorado | 114 | $530,000 | $1,900 |
| Rhode Island | 115 | $420,000 | $1,700 |
| Utah | 116 | $490,000 | $1,750 |
| Maryland | 117 | $400,000 | $1,700 |
| Connecticut | 119 | $400,000 | $1,700 |
| New Jersey | 120 | $470,000 | $1,900 |
| Washington | 120 | $540,000 | $1,950 |
| Oregon | 131 | $475,000 | $1,800 |
| New York | 139 | $420,000 | $2,100 |
| California | 142 | $750,000 | $2,400 |
| Massachusetts | 148 | $590,000 | $2,300 |
| Hawaii | 185 | $820,000 | $2,900 |
The 5 Cheapest States
Updated March 2026
Housing costs are extremely low. Groceries and utilities are also below average. Strong rural communities keep prices down across the board.
No state income tax on Social Security. Low property taxes. Energy costs are moderate due to oil and gas production keeping utility prices lower.
Low population density keeps housing affordable. Food costs are below average in a major agricultural state. Stable job market centered on manufacturing and agriculture.
One of the lowest property tax rates in the country. Groceries and healthcare costs are below the national average. Growing job market in automotive and aerospace.
Cheapest median home prices in the country. However, wages are also among the lowest, so relative affordability depends on your income source.
The 5 Most Expensive States
Updated March 2026
Everything is imported, which adds significant cost to groceries and goods. Housing on limited island land is extremely scarce. Utilities are expensive due to reliance on fuel imports.
Boston and Cambridge drive up housing significantly. World-class universities and hospitals make it an attractive but expensive metro. High incomes partially offset costs.
Housing is the main driver. San Francisco and Los Angeles are among the most expensive cities in the world. High state income tax adds further pressure.
New York City pulls the state average up enormously. Upstate New York is actually close to the national average. High taxes and dense urban housing drive the premium.
Portland has seen rapid housing price growth over the past decade. No state sales tax, but high income tax. Remote work migration has pushed prices higher.
What Is Included in Cost of Living?
Updated March 2026
The cost of living index is a weighted average of six major spending categories. Housing is by far the biggest factor, which is why housing prices dominate the difference between cheap and expensive states.
Rent or mortgage, property taxes, insurance. The single biggest driver of differences between states.
Car costs, fuel, public transit. Rural states often have higher transportation costs despite cheap housing.
Supermarket prices and restaurant meals. Hawaii pays a significant premium because almost everything is imported.
Insurance premiums, out-of-pocket costs, prescription drugs. Less variation between states than housing.
Electricity, gas, water. Southern states with mild winters often pay less. Hawaii pays more for electricity.
State income tax, sales tax, and property tax are not always in the index but dramatically affect take-home pay. Texas and Florida have no state income tax.
Is It Worth Moving to a Cheaper State?
Reasons it makes sense
- +You can work remotely and keep a higher-salary job
- +You are retiring and income is fixed
- +Your industry has similar salaries across locations
- +You are buying a home and want to build equity faster
- +Lower taxes can add up to thousands per year
Reasons to be cautious
- -Wages in cheap states are often lower too
- -Healthcare access can be more limited
- -Career opportunities may be fewer outside major metros
- -Moving costs and disruption are real upfront expenses
- -Some cheap states have high car-dependency costs
The rule of thumb: if you can keep your current salary and move to a lower cost of living state, the savings are real. If you have to take a pay cut to match local wages, run the numbers carefully first. Remote work has made this calculation much more favorable for cheap states over the past five years.
Frequently Asked Questions
What is the cheapest state to live in?
Mississippi is the cheapest state to live in, with a cost of living index of 84. That means everyday expenses cost about 16% less than the national average. Housing is particularly cheap, with median home prices around $160,000.
What is the most expensive state to live in?
Hawaii is the most expensive state with an index of 185, meaning everything costs about 85% more than the national average. Housing, groceries, and utilities are all significantly higher. California (142) and Massachusetts (148) are next.
How much cheaper is Mississippi than Hawaii?
$100 in Mississippi buys what $185 buys in Hawaii. The difference is driven almost entirely by housing. Mississippi median home price is around $160,000 vs Hawaii at over $800,000.
What does the cost of living index include?
The cost of living index covers housing (the biggest factor at 30-40% weight), groceries, utilities, transportation, healthcare, and miscellaneous goods and services. The national average is set at 100. States above 100 are more expensive, below 100 are cheaper.