Cost of living comparison by state

How much you spend on major expenses such as housing, groceries and insurance all impact your cost of living – and prices for goods and services can vary widely by location.

That means a state’s cost of living can make the difference between being financially comfortable and living paycheck to paycheck.

To compare the cost of living in different states, we ranked each of the 50 states and Washington, D.C., using data from the Center for Regional Competitiveness. This management organization oversees the Council for Community and Economic Research. 

The data track regional differences in the cost of consumer goods and services, allowing us to evaluate factors such as:

• Housing
• Groceries
• Transportation
• Utilities
• Home and auto insurance
• The cost of home and auto insurance
• Health care

Our base cost of living is represented by a reading of 100, which represents the national average. Locations are then indexed against this number. 

For example, a state with a cost of living of 110 would be 10% higher than the national average.

The average household spends $61,334 a year on expenses, according to the most recent numbers from World Population Review. More than one-third of that amount — 34.9% — goes toward housing and related costs.

Where you live plays a big role in how far that money goes. Hawaii scores 185.9, meaning it’s about 86% more expensive than the average, while Oklahoma sits at 86.3, making it roughly 14% cheaper.

If you are considering moving or simply want to know how your state stacks up, read on for more information about the cost of living by state.

What is cost of living? 

Cost of living refers to the amount of money you need to cover basic living expenses in a certain location. That can include the average cost of:

• Rent/mortgage payments
• Utilities
• Food and groceries
• Health care
• Home and auto insurance
• Transportation 
• Other goods and services

Your cost of living can tell you how expensive it is to live in one area versus another.

Average cost of living by state

Hawaii has a cost-of-living index of 185.9, making it 86% more expensive than the national average.

The table below shows the cost of living index for all 50 states in the U.S., plus Washington, D.C.

Oklahoma ranks lowest, with an index value of 86.3. That is a 14% savings over the national average.

States such as California and Massachusetts have much higher costs of living than places like Mississippi and Alabama because housing, taxes, and everyday expenses are significantly higher. In high-cost states, demand for housing in major job markets drives up real estate and rent prices, while higher state taxes and wages push up the price of goods and services. 

In contrast, lower-cost states typically have more affordable housing, lower taxes, and cheaper labor, keeping overall living expenses well below the national average.

The cost of living varies within each state, too. Rural areas usually have a lower cost of living than suburban and urban areas. Even one metro area within a state can have a very different cost of living from another metro in the same state.

For example, Houston, Dallas, El Paso, San Antonio, Austin, Amarillo, and Beaumont are all proudly Texan. However, the cost of living in each varies.

The more congested Northeast isn’t immune to the substantial cost of living variations.

New York has the New York City area, Long Island and Westchester County, all with high costs. However, the Empire State also includes more affordable areas such as Albany, Rochester, Utica and Buffalo.

So, don’t write off an entire state if it has a high cost of living overall. Instead, dig deeper into the numbers to gauge specific regional costs.

Cheapest states to live in 

We found that Oklahoma and Mississippi are the states with the lowest cost of living. Here are the 10 states with the lowest cost of living and how they compare to the national average:

Most expensive states to live in 

As far as the most expensive states to live in, they tend to fall along the two coasts. Here are the 10 most expensive states to live in and how their cost of living compares to the national average:

Cost of living breakdown by category

The cost of living is measured by examining various spending categories, primarily housing, groceries, healthcare, utilities, transportation, and miscellaneous expenses. While all of these categories reveal how residents spend their money, housing prices and availability significantly influence the cost of living in most states.

To accurately compare the cost of living across the country, we compared data in each of the above categories against the national average. With the national average represented as 100, each category in each state is either above or below this benchmark. 

States that fall below 100 have a lower cost of living than states above, meaning money goes farther in those states. Keep in mind, however, that although a state may be above the national average in one category, it may be below in others that make up for the higher cost.

For example, Idaho’s total cost of living is 2.1% above the average, but it has lower utility and healthcare costs that may offset the increased costs of groceries and housing.

What everyday items cost in each state

The cost of everyday items can significantly impact your lifestyle and financial planning. Paying more for the items you continually purchase means less money for savings and fewer opportunities for larger purchases.

The table below shows a few everyday items, the state where they cost the most, what people pay there, and how that compares to the national average.

Cost of living in the five most populous U.S. states

Let’s dive into the typical expenses in California, Florida, New York, Pennsylvania, and Texas — the country’s most populated states. We’ve compiled the cost of living index and average monthly housing, grocery, healthcare, and utility costs in each state to show what living in each state looks like.

California

California has a cost of living index of 142, which is 42% above the national average. California’s exceptionally high cost of living is driven by limited and expensive housing options, high state income taxes, and numerous regulations that increase the price of goods and services. Strong job markets in industries like tech and entertainment push demand — and prices — even higher, while everyday expenses such as gas, groceries, and utilities also rank among the nation’s most costly.

• Housing: $2,688/month
• Grocery: $133.90/month
• Healthcare: $464.23/month
• Utilities: $537.34/month
  

Florida

Although Florida’s cost of living index is 103, only 3% above the national average, residents face high housing costs driven by strong demand, especially in coastal cities and popular retirement destinations. Property insurance is also significantly higher due to the state’s vulnerability to hurricanes and flooding, and rising construction costs make repairs and rebuilding more expensive. 

At the same time, Florida’s overall cost of living is kept in check by the absence of a state income tax, relatively lower costs for utilities and groceries compared to many other states, and a large supply of service jobs that help balance wages and everyday expenses.

• Housing: $2,010/month
• Grocery: $131.80/month
• Healthcare: $396.50/month
• Utilities: $408.80/month
  

New York

New York’s cost of living index is 125, which is 25% above the national average. Limited housing supply — especially in New York City — drives up rents and home prices, while the state’s popularity as a cultural and financial hub fuels demand. 

Residents also face some of the highest state and local taxes in the nation, along with steep utility costs tied to infrastructure demands and cold winters. Everyday expenses like groceries, transportation, and childcare are also elevated, making New York consistently one of the most expensive places to live in the U.S.

• Housing: $2,445/month
• Grocery: $133.15/month
• Healthcare: $466.57/month
• Utilities: $404.27/month
  

Pennsylvania

Pennsylvania’s cost of living index is 97, which is 3% below the national average, largely because of its lower-than-average housing costs, particularly outside major cities like Philadelphia and Pittsburgh. The state also benefits from a flat income tax rate, which allows many residents to keep more of their earnings. 

Everyday expenses such as groceries and healthcare are generally close to or slightly below national averages, while transportation costs remain manageable thanks to shorter commutes in many regions. This balance of affordable housing and relatively low taxes makes Pennsylvania more budget-friendly than many neighboring states in the Northeast.

• Housing: $1,544/month
• Grocery: $130.66/month
• Healthcare: $363.17/month
• Utilities: $422.67/month
  

Texas

The cost of living index for Texas is 92. Living costs are generally lower thanks to abundant land for housing, fewer business and building regulations that keep construction affordable, and the absence of a state income tax. 

Everyday expenses like groceries, utilities, and transportation also tend to fall near or below national averages, helping Texans stretch their paychecks further. However, costs can rise quickly in major metro areas like Austin and Dallas, where rapid population growth and housing demand are driving up prices faster than in rural parts of the state.

• Housing: $1,301/month
• Grocery: $122.76/month
• Healthcare: $405.61/month
• Utilities: $418.66/month

How to compare the cost of living between cities

If you’re thinking of moving, it’s important to know the differences between your current place and a new one. Since the cost of living can vary significantly from one area to another, understanding the cost of everyday expenses can help you determine if the move is financially worthwhile. Our cost of living comparison calculator is a valuable tool that can provide you with the information you need to make an informed decision about your potential move.

Our cost of living comparison calculator is simple to use — just enter your current zip code, new zip code, and current salary. The results provide side-by-side comparisons of the cost of living, insurance, and expenses, including groceries, housing, and utilities, to help you make an informed decision. 

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How we measure cost of living

In compiling our list of the places with the highest cost of living, we looked at the average price of goods in more than 250 metro areas for the first three quarters of 2024.

This included average prices for 254 urban areas where data was available for at least two pricing periods. In a separate section, it included data for 276 urban areas where data was available for at least one pricing period. 

When urban areas had less than three pricing periods, we estimated prices so that we could have a complete set of observations. That means the annual average index includes actual and estimated prices. 

We took the average annual price for each item and calculated the index based on the most recent Consumer Expenditure Survey weights from the U.S. Bureau of Labor Statistics. 

Why does cost of living matter? 

A state’s cost of living plays a big role in how much you can save and grow your wealth. In high-cost areas, a modest income can leave little room for savings or financial growth after covering everyday expenses.

On the other hand, living in a lower-cost area can free up more of your budget. With essentials taking a smaller bite out of your income, you may have more flexibility to save, invest, or spend on things that improve your quality of life.

However, keep in mind that wages often mirror the cost of living. If you live in an expensive area such as San Francisco or Washington, D.C., your salary will likely be higher to account for that fact.

Your expenses and salary will likely be lower if you live in places like Kalamazoo, Michigan, or Charleston, West Virginia. 

What is a cost of living adjustment (COLA)? 

An annual cost of living adjustment (COLA)  helps Social Security and Supplemental Security Income (SSI) benefits keep pace with rising prices, protecting retirees’ and beneficiaries’ purchasing power. The adjustment is tied to inflation and is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is calculated by the U.S. Bureau of Labor Statistics.

The first COLA was introduced in 1975 to prevent fixed benefits from losing value over time as the cost of essentials, like food, housing, and healthcare, climbed. For 2024, Social Security and SSI benefits rose by 3.2%, reflecting the inflation experienced the previous year.

How the cost of living impacts your home and auto insurance rates

Many factors affect how much you pay for insurance, and location is one of the biggest. For example, living in an area prone to natural disasters — such as hurricanes, wildfires, or floods — typically drives up homeowners insurance premiums because of the higher risk of damage. Likewise, owning a high-value car that’s expensive to repair or replace can push your auto insurance rates higher.

The cost of living in your area can also influence insurance prices, but its impact isn’t always straightforward. In some cases, living in a higher-cost area can actually work in your favor. Expensive homes are often located in safer neighborhoods with lower crime rates, which can reduce the risk of theft or burglary and potentially lower both home and auto insurance premiums.

However, a higher cost of living doesn’t always mean lower risk or rates. Costly properties in high-risk locations, such as waterfront homes or houses in earthquake-prone regions, may face much higher premiums because insurers factor in the elevated risk of damage.

Methodology 

Our cost of living index evaluates several factors, which are weighted in terms of importance. Below are the eight main expense categories we used to gauge the cost of living, from most to least important:

• Miscellaneous goods and services (29%)
• Housing (28%)
• Groceries (16%)
• Transportation (9%)
• Utilities (9%)
• Health care (5%)
• Auto insurance (2%)
• Home insurance (2%)

We then ranked the states by those results. The base cost of living is always represented by 100; in this case, 100 represents the national average. Locations are then indexed against this number. For example, a state with a 110 on the cost of living index would be 10% higher than the national average..

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