The cost of living in the United States varies more between states than in any other large developed economy. A dollar in Mississippi buys about twice as much as the same dollar in Hawaii. This guide uses the standard Cost of Living Index (100 = US average) to rank all 50 states and shows where the differences actually come from.
Top 10 cheapest states
| Rank | State | COL Index | vs US average |
|---|---|---|---|
| 1 | Mississippi | ~85 | −15% |
| 2 | Oklahoma | ~86 | −14% |
| 3 | Kansas | ~87 | −13% |
| 4 | Alabama | ~88 | −12% |
| 5 | West Virginia | ~88 | −12% |
| 6 | Arkansas | ~89 | −11% |
| 7 | Iowa | ~89 | −11% |
| 8 | Missouri | ~89 | −11% |
| 9 | Tennessee | ~90 | −10% |
| 10 | Kentucky | ~92 | −8% |
Top 10 most expensive states
| Rank | State | COL Index | vs US average |
|---|---|---|---|
| 1 | Hawaii | ~190 | +90% |
| 2 | Massachusetts | ~148 | +48% |
| 3 | California | ~140 | +40% |
| 4 | New York | ~135 | +35% |
| 5 | New Jersey | ~125 | +25% |
| 6 | Washington | ~115 | +15% |
| 7 | Maryland | ~118 | +18% |
| 8 | Alaska | ~127 | +27% |
| 9 | Connecticut | ~113 | +13% |
| 10 | Oregon | ~115 | +15% |
Why Hawaii is so expensive
Hawaii's COL index hovers near 190. Almost every category sits 40-100% above the US mean:
- Groceries — most food is shipped or flown in. Gallon of milk in Honolulu can be twice the price of one in Houston.
- Housing — median home price in Honolulu often passes $1 million; limited land supply.
- Utilities — electricity is the most expensive in the country (much of it from imported oil).
- Gas — fuel costs more than anywhere except California in the West.
Why Mississippi is so cheap
Mississippi sits near 85 on the COL index:
- Housing — median home price among the lowest in the country (~$170,000).
- Property taxes — among the lowest effective rates.
- Low wages — pull cost of services down (haircuts, restaurants, etc.).
- Low density — almost no metro-tier pricing.
- The trade-off: median household income is also the lowest in the country.
Housing: the single biggest factor
Of the six categories in the standard COL Index, housing swings hardest. A few comparisons:
- Median home price in Mississippi: ~$170,000
- Median home price in Texas: ~$300,000
- Median home price in New York (state): ~$450,000
- Median home price in California: ~$780,000
- Median home price in Hawaii: ~$830,000
Inside each state, urban-rural variation is huge: a house in San Francisco can cost 4-5x one in Fresno.
Tax burden vs cost of living
The 9 states with no income tax (FL, TX, TN, NV, WA, WY, SD, AK, NH) span the full COL spectrum:
- Cheap + no income tax: Tennessee, South Dakota, Wyoming.
- Mid + no income tax: Florida, Texas, Nevada, New Hampshire.
- Expensive + no income tax: Washington, Alaska.
Most no-income-tax states make up revenue elsewhere (sales tax, property tax). Texas has very high property taxes; Tennessee has one of the highest sales tax rates in the country.
Cheapest and most expensive metros
Cheapest US metros
- McAllen, TX
- Memphis, TN
- Little Rock, AR
- Tulsa, OK
- Birmingham, AL
- Jackson, MS
Most expensive US metros
- Honolulu, HI
- San Francisco / San Jose, CA
- New York City, NY
- Boston, MA
- Washington, DC
- Seattle, WA
- Los Angeles / San Diego, CA
How real wages compare
Nominal income can be misleading. Adjusted for cost of living, the picture changes:
- A $100,000 salary in Mississippi = about $118,000 of buying power in US-average dollars.
- A $100,000 salary in San Francisco = about $60,000 of buying power.
- Median household income, adjusted for COL, often puts states like Utah, Minnesota, Wisconsin, Iowa and Nebraska at the top — high enough wages, low enough costs.
Learn the 50 states the fun way
Statedoku is a daily US-states puzzle. Quick and clever — geography drills disguised as fun.
Play today's puzzle →Cost of living vs quality of life
Cheap doesn't necessarily mean better. Mississippi is the cheapest state but ranks low on healthcare, education and income. Hawaii is the most expensive but ranks high on longevity and health. The cost index is one input among several — see also our guides to safest states, retiree-friendly states and no-income-tax states.
Frequently asked questions
What's the cheapest US state to live in?
Mississippi, with a Cost of Living Index near 85.
What's the most expensive?
Hawaii, near 190 — about 90% above the US average.
Where do most expensive states get their costs from?
Almost entirely from housing. Outside of housing, even California is only modestly above the national mean.
Is Texas really affordable?
Yes overall — Texas sits near 92 on the index. But property taxes are among the highest in the country and Austin housing has become expensive.
Where can I find the official numbers?
The Council for Community and Economic Research (C2ER) publishes the quarterly Cost of Living Index. The BEA also publishes "Regional Price Parities."