The cost of living varies dramatically across the U.S. A salary that provides a comfortable lifestyle in Mississippi would barely cover rent in Hawaii. Understanding these differences is essential for relocation decisions, salary negotiations, and financial planning.
Table of Contents
Cost of Living Index by State (2026)
The index uses 100 as the national average. Values above 100 are more expensive; below 100 are cheaper.
| Rank | State | Overall Index | Housing | Groceries | Utilities | Healthcare | Transportation |
|---|---|---|---|---|---|---|---|
| 1 | Mississippi | 84.0 | 62.4 | 93.2 | 87.0 | 90.5 | 89.2 |
| 2 | West Virginia | 84.4 | 60.1 | 95.3 | 93.0 | 90.7 | 92.3 |
| 3 | Arkansas | 85.0 | 63.7 | 92.8 | 91.5 | 86.7 | 88.5 |
| 4 | Oklahoma | 85.6 | 64.2 | 93.5 | 89.8 | 93.2 | 90.1 |
| 5 | Alabama | 86.2 | 65.8 | 94.1 | 95.2 | 87.9 | 91.0 |
| 6 | Kansas | 86.8 | 66.4 | 92.7 | 95.7 | 92.1 | 89.8 |
| 7 | Missouri | 87.1 | 67.0 | 93.4 | 93.6 | 93.8 | 88.7 |
| 8 | Georgia | 87.7 | 69.2 | 95.5 | 91.0 | 94.0 | 90.6 |
| 9 | Tennessee | 88.0 | 71.3 | 93.0 | 92.5 | 87.2 | 89.3 |
| 10 | Indiana | 88.3 | 68.5 | 94.8 | 90.7 | 95.2 | 90.2 |
| 11 | Iowa | 88.5 | 67.8 | 93.2 | 90.3 | 96.5 | 91.0 |
| 12 | Kentucky | 88.8 | 69.4 | 94.0 | 91.2 | 89.5 | 93.1 |
| 13 | Nebraska | 89.2 | 70.1 | 93.6 | 89.5 | 96.0 | 92.5 |
| 14 | North Dakota | 89.5 | 72.3 | 94.5 | 88.0 | 97.2 | 88.3 |
| 15 | South Dakota | 89.7 | 71.8 | 95.0 | 88.2 | 98.0 | 89.0 |
| 16 | Texas | 90.0 | 73.0 | 92.8 | 95.3 | 94.2 | 91.5 |
| 17 | Michigan | 90.3 | 72.0 | 93.1 | 96.5 | 93.8 | 94.0 |
| 18 | Ohio | 90.8 | 72.8 | 95.7 | 93.0 | 92.5 | 94.2 |
| 19 | South Carolina | 91.0 | 75.2 | 96.0 | 99.2 | 92.8 | 87.5 |
| 20 | Louisiana | 91.5 | 74.0 | 96.8 | 87.5 | 96.0 | 92.0 |
| 21 | Wyoming | 91.8 | 76.5 | 97.3 | 83.0 | 98.5 | 91.2 |
| 22 | New Mexico | 92.0 | 78.0 | 96.5 | 90.0 | 94.5 | 93.0 |
| 23 | North Carolina | 92.5 | 78.5 | 96.2 | 93.8 | 95.0 | 89.8 |
| 24 | Wisconsin | 93.0 | 79.0 | 96.0 | 91.5 | 96.8 | 93.5 |
| 25 | Idaho | 94.0 | 83.2 | 95.5 | 87.0 | 96.0 | 93.8 |
| 26 | Montana | 95.2 | 84.0 | 97.0 | 85.0 | 97.5 | 94.0 |
| 27 | Minnesota | 95.8 | 85.5 | 98.2 | 90.8 | 94.0 | 96.3 |
| 28 | Nevada | 96.0 | 86.0 | 99.0 | 88.5 | 95.0 | 98.5 |
| 29 | Arizona | 97.0 | 89.5 | 96.8 | 97.0 | 95.2 | 97.0 |
| 30 | Illinois | 97.5 | 87.0 | 97.5 | 92.3 | 99.0 | 104.0 |
| 31 | Florida | 98.5 | 93.0 | 101.0 | 98.0 | 96.0 | 101.5 |
| 32 | Pennsylvania | 98.8 | 88.5 | 101.5 | 98.5 | 97.5 | 103.0 |
| 33 | Delaware | 99.5 | 90.0 | 102.0 | 99.0 | 98.0 | 105.0 |
| 34 | Virginia | 101.0 | 95.0 | 98.5 | 97.2 | 96.8 | 102.5 |
| 35 | Utah | 101.5 | 96.5 | 97.0 | 85.0 | 96.5 | 98.0 |
| 36 | Rhode Island | 103.0 | 101.5 | 103.5 | 103.0 | 97.0 | 104.5 |
| 37 | New Hampshire | 104.5 | 104.0 | 102.0 | 105.0 | 96.0 | 103.0 |
| 38 | New Jersey | 108.5 | 112.0 | 103.5 | 100.0 | 98.5 | 108.0 |
| 39 | Colorado | 109.0 | 115.0 | 101.0 | 90.0 | 100.0 | 106.5 |
| 40 | Vermont | 109.5 | 109.0 | 105.5 | 108.0 | 101.0 | 103.0 |
| 41 | Maine | 110.0 | 109.5 | 104.0 | 109.5 | 100.5 | 104.5 |
| 42 | Washington | 112.5 | 118.0 | 105.5 | 88.5 | 102.0 | 113.0 |
| 43 | Connecticut | 113.0 | 116.5 | 106.0 | 112.5 | 101.0 | 107.0 |
| 44 | Maryland | 113.5 | 118.5 | 104.0 | 103.0 | 99.5 | 107.5 |
| 45 | Oregon | 115.0 | 122.0 | 104.5 | 86.0 | 101.5 | 114.5 |
| 46 | Alaska | 117.5 | 108.5 | 123.0 | 130.0 | 113.0 | 110.5 |
| 47 | New York | 123.5 | 138.0 | 108.0 | 112.0 | 102.0 | 112.5 |
| 48 | Massachusetts | 131.0 | 152.5 | 107.5 | 111.0 | 103.0 | 108.0 |
| 49 | California | 138.5 | 168.0 | 107.0 | 110.0 | 105.5 | 118.5 |
| 50 | Hawaii | 186.5 | 266.0 | 131.0 | 155.0 | 108.0 | 125.5 |
What $75,000 Buys You in Different States
To illustrate how cost of living affects purchasing power:
| State | CoL Index | Equivalent Purchasing Power | Monthly After-Tax “Feel” |
|---|---|---|---|
| Mississippi | 84 | $89,286 | Strong |
| Texas | 90 | $83,333 | Comfortable |
| Florida | 98.5 | $76,142 | Average |
| Colorado | 109 | $68,807 | Tight |
| New York | 123.5 | $60,729 | Stretched |
| California | 138.5 | $54,152 | Struggling |
| Hawaii | 186.5 | $40,214 | Very difficult |
Cheapest States to Live In
The five most affordable states share common traits: lower housing costs, below-average wages, and often rural population centers.
| Rank | State | Index | Avg. Home Price | Avg. Income |
|---|---|---|---|---|
| 1 | Mississippi | 84.0 | $180,000 | $47,570 |
| 2 | West Virginia | 84.4 | $155,000 | $52,200 |
| 3 | Arkansas | 85.0 | $185,000 | $51,250 |
| 4 | Oklahoma | 85.6 | $195,000 | $53,450 |
| 5 | Alabama | 86.2 | $210,000 | $53,400 |
Most Expensive States to Live In
| Rank | State | Index | Avg. Home Price | Avg. Income |
|---|---|---|---|---|
| 1 | Hawaii | 186.5 | $835,000 | $65,030 |
| 2 | California | 138.5 | $740,000 | $76,960 |
| 3 | Massachusetts | 131.0 | $590,000 | $80,330 |
| 4 | New York | 123.5 | $505,000 | $78,620 |
| 5 | Oregon | 115.0 | $475,000 | $66,710 |
Housing: The Biggest Cost Driver
Housing is the largest component of cost of living differences. The cheapest states have housing costs 40% below the national average, while the most expensive states are 50-160% above average.
| Category’s Weight in CoL | Impact |
|---|---|
| Housing | 30-35% of index |
| Groceries | 13-15% |
| Transportation | 10-12% |
| Utilities | 8-10% |
| Healthcare | 8-10% |
| Miscellaneous | 20-25% |
If you’re considering relocating, housing costs should be your primary focus — they create the largest savings or costs.
Cost of Living vs. Income: Where Your Dollar Goes Furthest
The best value states combine reasonable costs with strong incomes:
| State | CoL Index | Avg. Income | Income-to-CoL Ratio |
|---|---|---|---|
| Virginia | 101.0 | $70,050 | 69.4 |
| Minnesota | 95.8 | $66,700 | 69.6 |
| Washington | 112.5 | $78,130 | 69.4 |
| Texas | 90.0 | $61,240 | 68.0 |
| Tennessee | 88.0 | $56,030 | 63.7 |
| Georgia | 87.7 | $61,250 | 69.8 |
| North Carolina | 92.5 | $59,730 | 64.6 |
States like Georgia, Virginia, and Minnesota offer a strong balance of income and affordability.
Related: Average Income by State | Median Home Price by State | Income Needed to Afford a Home | States With No Income Tax
