How do you calculate cost of living differences between cities?

Cost of living is measured using indexes that compare prices in one city to a national average (100). A city at 120 is 20% more expensive than average. Key categories include housing (largest factor), groceries, transportation, healthcare, and utilities. To compare two cities: divide the destination index by the origin index. For example, moving from Dallas (96) to San Francisco (180): 180 ÷ 96 = 1.875, meaning SF is about 88% more expensive.

What salary do I need to maintain my lifestyle in a new city?

Multiply your current salary by the ratio of the two cities' cost indexes. If you earn $80,000 in Houston (index 94) and move to Seattle (index 150): $80,000 × (150 ÷ 94) = $127,660. You'd need about $127,660 in Seattle to maintain the same standard of living as $80,000 in Houston.

What is the most expensive city to live in the US?

New York City (Manhattan) and San Francisco are consistently the most expensive, with cost of living indexes around 180-240 (80-140% above national average). Honolulu, Boston, Washington DC, Los Angeles, and San Jose round out the top tier. Housing costs are the primary driver — a median home in SF costs roughly 5 times the national median.

Cost of Living Calculator: Compare Costs Between Cities and States (2026)

Use these tables to compare costs between US cities and calculate the salary you need to maintain your lifestyle.

Cost of Living Index by Major City (2026)

National average = 100. Higher = more expensive.

Most Expensive Cities

City	Overall Index	Housing	Groceries	Transportation	Healthcare	Utilities
Manhattan, NY	238	442	118	125	110	138
San Francisco, CA	180	316	112	118	115	94
Honolulu, HI	170	265	138	132	108	168
San Jose, CA	168	302	110	114	112	92
Boston, MA	152	218	108	112	120	125
Washington, DC	149	236	106	108	108	102
Los Angeles, CA	146	243	106	118	108	88
Seattle, WA	150	237	108	115	110	90
San Diego, CA	144	232	104	112	110	94
Miami, FL	134	198	106	108	106	102

Average-Cost Cities

City	Overall Index	Housing	Groceries	Transportation	Healthcare	Utilities
Denver, CO	120	152	102	106	108	92
Portland, OR	118	152	104	108	110	88
Austin, TX	108	122	96	102	98	98
Nashville, TN	104	112	96	98	96	92
Chicago, IL	107	118	104	114	104	96
Minneapolis, MN	106	112	102	104	104	94
Atlanta, GA	102	108	98	102	102	96
Charlotte, NC	98	96	96	96	102	92
Phoenix, AZ	100	108	98	100	98	98
Dallas, TX	96	92	94	98	100	102

Most Affordable Cities

City	Overall Index	Housing	Groceries	Transportation	Healthcare	Utilities
Houston, TX	94	82	92	96	98	104
San Antonio, TX	90	78	92	94	94	100
Indianapolis, IN	88	72	94	96	96	92
Kansas City, MO	88	74	92	98	96	98
Columbus, OH	90	78	94	98	94	88
Pittsburgh, PA	90	76	98	98	92	96
Memphis, TN	84	62	92	92	92	88
Detroit, MI	86	64	92	96	96	94
Oklahoma City, OK	84	64	90	94	92	92
Wichita, KS	82	58	90	92	94	98

Salary Equivalent Calculator

What $75,000 in Dallas Equals in Other Cities

Destination City	Cost Index	Equivalent Salary	Difference
Wichita, KS	82	$64,063	-$10,937
Memphis, TN	84	$65,625	-$9,375
Indianapolis, IN	88	$68,750	-$6,250
Houston, TX	94	$73,438	-$1,562
Dallas, TX (baseline)	96	$75,000	$0
Atlanta, GA	102	$79,688	+$4,688
Denver, CO	120	$93,750	+$18,750
Miami, FL	134	$104,688	+$29,688
Seattle, WA	150	$117,188	+$42,188
Boston, MA	152	$118,750	+$43,750
San Francisco, CA	180	$140,625	+$65,625
Manhattan, NY	238	$185,938	+$110,938

What $100,000 in San Francisco Equals Elsewhere

Destination City	Cost Index	Equivalent Salary	Annual Savings
San Francisco (baseline)	180	$100,000	$0
Seattle, WA	150	$83,333	+$16,667
Denver, CO	120	$66,667	+$33,333
Austin, TX	108	$60,000	+$40,000
Dallas, TX	96	$53,333	+$46,667
Indianapolis, IN	88	$48,889	+$51,111
Memphis, TN	84	$46,667	+$53,333

Even earning less in a lower-cost city, you may have more purchasing power and savings potential.

Monthly Budget Comparison

Single Person Budget in 3 Cities

Category	Memphis, TN	Dallas, TX	San Francisco, CA
Rent (1BR apartment)	$850	$1,350	$3,100
Groceries	$320	$340	$420
Transportation	$380	$420	$480
Healthcare	$350	$380	$440
Utilities	$130	$150	$140
Internet/Phone	$120	$120	$130
Entertainment	$150	$200	$300
Insurance (auto)	$180	$190	$220
Total monthly	$2,480	$3,150	$5,230
Annual expenses	$29,760	$37,800	$62,760
Salary needed (with 20% savings)	$37,200	$47,250	$78,450

Family of 4 Budget in 3 Cities

Category	Indianapolis, IN	Charlotte, NC	Boston, MA
Housing (3BR)	$1,400	$1,700	$3,200
Groceries	$800	$850	$1,050
Transportation (2 cars)	$900	$950	$1,100
Healthcare	$900	$950	$1,200
Childcare (2 kids)	$1,600	$1,800	$3,200
Utilities	$250	$260	$340
Insurance	$400	$420	$520
Entertainment	$300	$350	$450
Total monthly	$6,550	$7,280	$11,060
Annual expenses	$78,600	$87,360	$132,720
Household income needed (with 20% savings)	$98,250	$109,200	$165,900

Housing Cost: The Biggest Driver

Median Home Price vs Median Household Income

City	Median Home Price	Median Household Income	Price-to-Income Ratio	Years of Income to Buy
Wichita, KS	$175,000	$58,000	3.0	3.0
Memphis, TN	$195,000	$54,000	3.6	3.6
Indianapolis, IN	$250,000	$62,000	4.0	4.0
Dallas, TX	$350,000	$72,000	4.9	4.9
Denver, CO	$540,000	$84,000	6.4	6.4
Seattle, WA	$750,000	$110,000	6.8	6.8
Boston, MA	$780,000	$98,000	8.0	8.0
Los Angeles, CA	$900,000	$76,000	11.8	11.8
San Francisco, CA	$1,350,000	$130,000	10.4	10.4
Manhattan, NY	$1,100,000	$95,000	11.6	11.6

A healthy ratio is 3-4× income. Above 6 is considered unaffordable by most standards.

Remote Work Arbitrage

High Salary + Low Cost of Living

Strategy	Example	Annual Savings vs Local Hire
SF salary, live in Boise	$150K salary, $95 COL index	$30,000-$50,000 more saved
NYC salary, live in Raleigh	$130K salary, $98 COL index	$25,000-$40,000 more saved
Seattle salary, live in Phoenix	$140K salary, $100 COL index	$20,000-$35,000 more saved
Boston salary, live in Nashville	$120K salary, $104 COL index	$15,000-$30,000 more saved

Watch Out For

Factor	Impact
State income tax	Moving from WA (0%) to CA (13.3%) costs thousands
Property taxes	Range from 0.28% (HI) to 2.47% (NJ)
Salary adjustment	Some companies reduce pay 10-25% for lower-cost areas
Career growth	Smaller markets may have fewer advancement opportunities

Cost of Living by State (Index)

Rank	State	Overall Index	Housing Index
1 (cheapest)	Mississippi	84	63
2	Oklahoma	86	65
3	Kansas	86	66
4	Alabama	87	64
5	Arkansas	87	65
25 (median)	Virginia	102	108
46	Massachusetts	148	195
47	New York	148	210
48	California	142	202
49	Hawaii	186	295
50 (most expensive)	District of Columbia	152	240