Cost of Living by State: Complete Comparison

How Cost of Living Is Measured

The Cost of Living Index (COLI) compares expenses in each area to the national average of 100. A score of 85 means costs are 15% below average; 130 means 30% above.

The index accounts for six major categories:

- Housing (30-40% weight) — Rent, mortgage payments, property taxes, homeowners insurance. This is the biggest variable. Median home prices range from $155,000 (West Virginia) to $830,000+ (Hawaii, California).

- Groceries (12-15%) — Food at home costs. Surprisingly consistent across states (±15%), but higher in Hawaii (+30%) due to shipping costs.

- Transportation (10-12%) — Gas prices, car insurance, public transit. Gas varies from ~$2.80/gallon (Gulf states) to $4.50+ (California, Hawaii).

- Healthcare (7-10%) — Insurance premiums, copays, prescription costs. Highest in Alaska and lowest in Utah.

- Utilities (6-8%) — Electricity, gas, water. Hawaii's electricity is 3× the national average. Southern states have higher summer cooling costs.

- Miscellaneous (15-20%) — Clothing, entertainment, services.

Top 10 Cheapest States (2026)

The most affordable states for overall cost of living:

1. Mississippi (COL Index: 83.3) — Lowest housing costs in the nation. Median home $155,000. Trade-off: lower median income ($49,111).
2. Oklahoma (84.8) — Very affordable housing and utilities. Growing job market in Tulsa and OKC.
3. Kansas (86.3) — Low housing, moderate taxes. Strong agriculture and aviation sectors.
4. Alabama (87.1) — Low property taxes (0.37%), affordable housing. Growing tech sector in Huntsville.
5. West Virginia (87.4) — Lowest median home prices. Limited job market in many areas.
6. Georgia (88.0) — Atlanta metro is expensive, but rest of state is very affordable.
7. Missouri (88.3) — Kansas City and St. Louis offer urban amenities at below-average costs.
8. Iowa (88.5) — Very stable costs, strong job market relative to cost.
9. Tennessee (89.4) — No state income tax. Nashville metro is above average but rest of state is cheap.
10. Arkansas (89.6) — Low cost across all categories. Walmart and Tyson headquarters bring jobs.

These states offer 12-17% lower costs than the national average, translating to $8,000-12,000/year in real purchasing power on a $65,000 salary.

Top 5 Most Expensive States

1. Hawaii (185.5) — 85% above the national average. Median home $830,000+. Groceries 30% higher due to import costs. Electricity 3× average.

2. California (138.5) — Major metros (SF, LA, San Diego) drive the average up. Remote areas are more affordable but still above national average. Median home $730,000.

3. Massachusetts (131.6) — High housing (median $580,000), but also high incomes. Boston metro is particularly expensive.

4. New York (126.3) — NYC skews the state average dramatically. Upstate NY is near or below national average. NYC proper is estimated at 187 on the COL index.

5. Washington (115.8) — Seattle metro is 49% above average, but eastern Washington is at or below average. No state income tax partially offsets high costs.

The salary adjustment: A $100,000 salary in Mississippi (COL 83.3) buys about what $155,000 buys in California (COL 138.5). Or equivalently, a $100,000 California salary has the purchasing power of ~$60,000 in Mississippi.

How to Use Cost of Living Data for Relocation

Step 1: Calculate your current effective salary.
Divide your salary by your current area's COL index, then multiply by 100. A $80,000 salary in NYC (COL 187) has an effective purchasing power of $80,000 ÷ 187 × 100 = $42,780.

Step 2: Find the equivalent salary in your target location.
Multiply your effective salary by the target COL index. Moving from NYC to Austin (COL 97): $42,780 × 97 ÷ 100 = $41,497. You could take a $38,500 pay cut and maintain the same purchasing power.

Step 3: Factor in taxes and hidden costs.
COL doesn't include state income tax. Moving from New York (10.9% top rate) to Texas (0%) adds thousands to your effective income. But Texas has higher property taxes (1.60% vs NY's 1.23%).

Step 4: Consider quality-of-life factors.
Cheaper isn't always better. Weigh: job market depth, healthcare quality, schools, climate, cultural amenities, proximity to family, and long-term career growth opportunities.

Run your specific comparison: Cost of Living Calculator | Compare Any Two States.