What is a cost of living index?

A cost of living index compares the relative price of goods and services between locations. The national average is set at 100. A score of 110 means 10% more expensive than average; 90 means 10% cheaper. The index covers housing, groceries, transportation, healthcare, and utilities.

Which state is the cheapest to live in?

Mississippi, West Virginia, Arkansas, Oklahoma, and Alabama consistently rank as the cheapest states. Housing drives most of the difference — a median home in Mississippi costs roughly $150,000 compared to $740,000+ in California.

Which state is the most expensive to live in?

Hawaii is the most expensive overall (roughly 90% above average), driven by extreme housing and grocery costs. Massachusetts, California, New York, and Connecticut round out the top 5.

Does a higher cost of living mean higher salaries?

Generally yes, but not proportionally. Salaries in high-cost states are typically 20-40% higher, but costs can be 50-90% higher. The BEA's Regional Price Parities show that purchasing power is often highest in low-cost Southern and Midwestern states.

How should I use this when deciding where to move?

Compare your expected salary in both locations, then adjust for cost of living. A $80,000 salary in Mississippi (index ~84) has the same purchasing power as roughly $115,000 in Massachusetts (index ~148). Don't just look at salary numbers — look at what they buy.

🗺️

Cost of Living by State

All 50 states ranked by cost of living index (national average = 100). Pick any two states for a side-by-side category comparison.

⚖️ Compare Two States

State A

State B

📊 Overall+42.0%

100

142

🏠 Housing+95.0%

100

195

🛒 Groceries+2.9%

102

105

🚗 Transportation+15.0%

100

115

🏥 Healthcare+7.1%

105

⚡ Utilities+10.0%

100

110

All 50 States Ranked

State	Overall↑	Housing	Groceries	Transportation	Healthcare	Utilities
1.Mississippi	84	65	93	88	90	95
2.West Virginia	84	62	95	90	95	95
3.Arkansas	86	68	93	88	88	92
4.Oklahoma	86	68	95	90	92	92
5.Alabama	87	70	95	88	90	97
6.Kentucky	87	70	93	90	90	95
7.Kansas	88	70	95	95	100	100
8.Missouri	88	72	95	95	95	95
9.Tennessee	89	75	95	88	92	95
10.Indiana	90	75	95	95	95	95
11.Iowa	90	72	95	95	100	95
12.Michigan	90	75	95	98	95	100
13.Nebraska	90	75	95	95	100	90
14.New Mexico	90	80	98	95	95	90
15.Ohio	90	72	97	95	92	95
16.South Dakota	90	78	100	92	110	85
17.Louisiana	91	78	98	90	95	88
18.South Carolina	91	78	97	90	100	100
19.Georgia	92	80	96	95	95	95
20.North Dakota	92	78	100	95	110	85
21.Texas	92	82	95	95	95	95
22.Wyoming	92	82	100	95	105	80
23.North Carolina	93	80	97	92	100	95
24.Wisconsin	93	82	98	95	100	95
25.Idaho	95	90	95	95	98	85
26.Montana	95	90	100	95	105	85
27.Arizona	97	95	97	98	95	100
28.Illinois	97	85	98	105	100	100
29.Minnesota	98	95	100	98	100	95
30.Pennsylvania	98	90	100	105	95	105
31.Utah	98	100	98	95	92	82
32.Florida	100	100	102	100	98	100
33.Nevada	100	100	100	105	95	90
34.Delaware	103	100	102	105	105	100
35.Virginia	103	105	100	100	100	100
36.Colorado	105	115	100	98	100	90
37.Maine	112	110	102	105	115	120
38.Oregon	113	130	100	105	100	85
39.Vermont	115	120	105	100	115	120
40.Washington	115	135	105	110	100	85
41.New Hampshire	118	130	100	100	110	120
42.Rhode Island	118	130	102	100	110	120
43.Maryland	120	145	105	105	100	110
44.Alaska	127	130	130	115	145	150
45.Connecticut	127	140	105	105	115	130
46.New Jersey	130	155	105	110	105	110
47.New York	140	185	105	110	105	115
48.California	142	195	105	115	105	110
49.Massachusetts	148	190	110	105	115	130
50.Hawaii	192	280	150	130	110	170

Index: 100 = national average. Below 100 = cheaper than average. Above 100 = more expensive. Based on widely-reported BEA Regional Price Parities and cost-of-living surveys.

What to Do About It

Don't just compare salaries. A $70K salary in Mississippi buys more than $100K in California. Look at purchasing power, not raw numbers.

Housing is the biggest variable. It drives 60-70% of the cost-of-living difference between states. If you can work remotely, consider living somewhere with low housing costs.

Factor in state income tax. Florida, Texas, Nevada, and 6 other states have no state income tax. That can save 5-10% of your gross income compared to high-tax states.

Consider the full picture. Climate, job market, proximity to family, schools, healthcare quality — cost of living is one input, not the only one.

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