Highest cost of living states in the U.S.

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Knowing which states are the most expensive to live in can have a profound influence on life decisions, from where to live to how to negotiate your salary and manage your budget. This understanding becomes even more crucial when you’re considering a move from a low-cost state to a more expensive one.

We’ve ranked the 10 most expensive states based on the cost of living. The cost of living index compares the costs of groceries, housing, utilities, transportation, healthcare, and miscellaneous expenses against the national average, which is represented as 100.

Keep reading to learn which 10 states are the most expensive for residents, and key factors that make certain states pricier.

Key Takeaways

Hawaii has the highest overall cost of living in the U.S.
Housing costs have the most significant impact on the cost of living, accounting for the largest percentage of income.
Hawaii’s housing costs are three times the national average, and Alaska’s healthcare costs are almost 50% more than the national average.

Top 10 highest cost-of-living states in the U.S.

The cost of living index compares everyday expenses from different areas against the national average, which is represented as 100. Each state falls below or above 100, indicating its overall cost of living.

Various categories are used in calculating the cost of living, including housing, groceries, utilities, healthcare, transportation, and miscellaneous expenses. However, not every category is weighed equally. For example, housing costs are weighted more heavily because they represent a higher percentage of income.

The top 10 highest cost-of-living states are:

Hawaii

Hawaii’s cost of living index is 185.90, almost 86% above the national average. Its housing index is 306.40, mainly due to limited land supply, high housing costs, and high material import costs. On average, homeowners spend $14,384 a month on expenses and renters spend $8,035.

California

California’s cost of living index is 142.53, almost 43% above the national average. Its housing index is 200.52, double the national average, primarily due to the high cost of land and stringent zoning regulations. Homeowners spend an average of $12,195 per month on expenses, while renters spend an average of $6,650 per month.

Massachusetts

Massachusetts has a cost of living index of 141.15, 41% above the national average. Its housing index is 195.50, and utilities are 152.45, mainly due to a housing shortage and a strong economy. On average, homeowners spend $12,673 per month on expenses, while renters spend $7,137 per month.

District of Columbia

Washington, D.C. has a cost of living index of 140.40, 40% above the national average. Housing is the most significant expense, with an index of 217.60. This is due to a housing shortage as more people come to the city for high-paying jobs. Homeowners spend an average of $11,833 per month on expenses, while renters spend an average of $7,267 per month.

New York

New York’s cost of living index is 124.84, almost 25% above the national average. The housing index is 173.03, partly due to a housing shortage in certain parts of the state, as well as stringent statewide regulations and zoning. On average, homeowners spend $10,436 per month on expenses, while renters spend $6,043 per month.

Alaska

Alaska’s cost of living index is 124.27, almost 25% above the national average. The utility expenses index is 154.10, and healthcare is 147.90. Due to Alaska’s remoteness and limited access to goods, utilities and healthcare are costly. The average monthly expenses for homeowners are $10,536, and for renters, they are $5,716.

Maryland

Maryland’s cost of living is 115.30, approximately 15% above the national average. The housing index is 135.70, mainly due to a lack of housing, especially considering the proximity to D.C. On average, homeowners spend $9,575 on monthly expenses, and renters spend $5,840.

New Jersey

New Jersey has a cost of living index of 114.78, which is almost 15% above the national average. Its housing index is 138.88 due to high housing costs, including high property taxes, and limited supply. Homeowners spend an average of $9,448 on monthly expenses, and renters spend $6,064.

Vermont

Vermont’s cost of living index is 114.30, 14% above the national average. Its housing index is 130.30 due to limited supply. Other factors impacting Vermost’s cost of living are high taxes and difficulty accessing goods and services. On average, homeowners spend $9,452 per month on expenses, while renters spend $5,989 per month.

Washington

Washington’s cost of living index is 114.28, 14% above the national average. Its housing index is 126.48, mainly due to a lack of housing. High taxes and energy prices also contribute to the high cost of living. Homeowners spend an average of $9,991 a month on expenses, and renters spend $5,518.

Cost of living by category in the most expensive states

Not all states are expensive for the same reasons. In each category, some states stand out far above the rest. Let’s break down the most costly states for grocery, housing, utility, transportation, healthcare, and miscellaneous expenses.

Grocery costs

Hawaii has the most expensive grocery costs, with an index of 131.60, which is almost 32% above the national average. Alaska comes in a close second with an index of 127.57. High import costs contribute significantly to food costs in both states.

Housing costs

Hawaii’s housing index is 306.40, 200% above the national average, primarily due to limited housing space and high demand. Additionally, materials must be imported, which increases housing prices.

“Hawaii’s cost of living is higher than other states due to a combination of factors, including geography, transportation costs, limited land, and workforce challenges, says James Kunane Tokioka, director of Hawaii’s Department of Business, Economic Development & Tourism.

“To address this, the state government and other entities have focused efforts on building affordable housing; providing tax relief, financial assistance, and social support; and investing in our infrastructure.”

Utilities costs

Hawaii’s utility index is 200.10, double the national average. Hawaii imports its fuel, which significantly increases the cost of utilities due to high import and transportation costs resulting from its remote location.

Healthcare costs

Alaska’s healthcare cost index is 147.90, almost 50% above the national average. Healthcare costs more in Alaska due to its remote location and low population, compared to the cost of transporting supplies and medical professionals.

State	Average cost of living index	Percent difference from national average
Hawaii	185.90	86%
California	142.53	43%
Massachusetts	141.15	41%
District of Columbia	140.40	40%
New York	124.84	25%
Alaska	124.27	24%
Maryland	115.30	15%
New Jersey	114.78	15%
Vermont	114.30	14%
Washington	114.28	14%
Connecticut	112.67	13%

How a high cost of living impacts your lifestyle

The cost of living has a substantial impact on your lifestyle. For example, if you live in an area with a high cost of living, you may have to buy or rent a smaller living space and have less disposable income. This can affect your ability to save, enjoy hobbies, and plan for your financial future.

Your money also won’t go as far. Higher grocery bills mean that you get much less for $100 than in an area with a lower cost of living. For example, a cup of coffee in Alaska costs $7.57, but it costs only $5.10 in Rhode Island.

Beyond housing and groceries, everyday essentials like gas, healthcare, and childcare also vary widely depending on location. These differences add up quickly and can influence where people choose to live, work, and retire.

Where living costs are high, but some expenses stay low

While a state may have an overall high cost of living, it may be affordable in other categories that make it a good option. If there is a category that is important to you or you know that you’ll spend a lot of money on, relocating to an area that has a cost of living index below the national average can influence where you move.

For example, Washington’s cost of living index is 114.28, but its utilities index is below the national average at 93.26, which allows residents to save money in this area.

“Residents should also be aware of how their wages relate to their cost of living,” says Alec Romero, research analyst for the Center for Regional Economic Competitiveness.

“For example, even if a Civil Engineer in New York makes around $116,000 annually and one in North Dakota makes $95,000 annually, the lower cost of living in North Dakota allows that salary to stretch further. Even if a job offers a higher salary in one location, differences in the cost of living can influence whether someone decides to make the move.”

How to budget for life in a high-cost state

The first step in managing expenses in a high-cost state is to closely examine your finances. Make sure you know what you’re earning compared to what you’re spending. Once you have a handle on your money, you can make changes to maintain your quality of life.

Next, consider ways to decrease housing, transportation, grocery, and utility costs. For example, you might save money by renting a smaller living space, using public transit instead of driving, choosing generic grocery items, and cutting utility costs by turning off lights when they’re not needed.

Finally, factor in salary and benefits changes when considering a move. A higher salary and better benefits may outweigh a higher cost of living.

High cost of living vs. high quality of life

In some cases, a higher quality of life comes with a higher cost of living. For example, an area with a high cost of living, such as Washington, D.C., also offers a greater variety of healthcare and educational options. Additionally, the job market is more robust, offering a wider range of career opportunities. There are also more dining and entertainment venues.

While many high-cost-of-living areas offer lifestyle advantages, it’s important to consider the costs. For example, you may face increased financial stress or struggle to afford a home in these areas.

When considering whether a high-cost-of-living area meets your needs, you should weigh the pros and cons and determine what is most important to you.

Factors contributing to a high cost of living

Residents’ expenses determine the cost of living in a specific place. Fortunately, more than one expense is used to calculate the cost of living, so if one factor is high, it can be offset by lower costs in other areas.

“Many factors can affect cost of living, including, but not limited to, proximity to and availability of producers of goods and services, inflation, nominal wages, state and local government taxes and regulations, and overall local market conditions,” says Romero.

“All states across the U.S. have their own unique mix of industries that can affect cost of living. For example, Northern Virginia, Maryland, and Washington, D.C. have many high-wage workers in high-paying industries like management and government consulting that spend more and drive costs up. Others like California have high property taxes that increase housing costs, or rely on industries like tourism that reduce the cost burden of residents by passing those off to non-residents”.

Factors that contribute to the high cost of living include:

Housing demand and availability
State and local taxes
Geographic and import costs
Wages and job market conditions
Tourism and desirability

Compare your state’s cost of living before you move

It’s important to compare the cost of living by state when considering a move. While you may be making a higher salary, it won’t be helpful if the cost of living is much higher than you’re used to.

Our cost of living calculator is a simple way to compare your current location with a high-cost state to see how your day-to-day expenses may differ.

Enter your current state and where you are considering moving, along with your current salary. This allows you to compare your current expenses with those of another state.

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Data updated on: Q2 2025

$32,000

Cost of living in Boise City, ID, after-tax

Cost of Living

36% lower

in Boise City, ID, than New York (Brooklyn) City, NY

Auto Insurance

46% lower

in Boise City, ID, than New York (Brooklyn) City, NY

Home Insurance

33% lower

in Boise City, ID, than New York (Brooklyn) City, NY

Compare cost of living: Boise City, ID, vs New York (Brooklyn) City, NY

Cost in
Boise City, ID

------- vs -------

Cost in
New York (Brooklyn) City, NY

Housing

-63%

Groceries

-10%

Utilities

-35%

Transportation

-3%

Healthcare

-20%

Misc. Goods & Services

-4%

Auto Insurance

-46%

Home Insurance

-33%

Auto Insurance

New York (Brooklyn) City, NY: $2,453
Boise City, ID: $1,321
% Change: 46% lower

Home Insurance

New York (Brooklyn) City, NY: $2,694
Boise City, ID:
$1,809
% Change: 33% lower

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L O A D I N G

How to use cost of living comparison calculator

To use the tool, enter the Zip code to get the most accurate result. Cities can have multiple Zip codes, so by entering the city name, you'll get the average for all Zip codes in that city. We may not have cost-of-living data for some non-metropolitan areas. In those cases, we provide the cost-of-living information for the nearest Zip code with available information.

The cost of living index lets you compare one area’s costs with another.
Enter where you live and the information about another community. Provide your income and calculate the cost of living.
Our tool shows what you’ll need to earn to maintain the same standard of living. The tool also highlights the cost differences for each category: housing, groceries, utilities, transportation, health care, auto insurance, and home insurance.
The cost of living tool additionally includes how much you’d save on home and auto insurance.
Enter your information below and compare the cost of living between two places.

Frequently asked questions

What is the cost of living index, and how is it measured?

The cost of living index compares standard expenses to a national average, represented as 100. Any area with an index above 100 has a cost of living higher than average, while regions with an index below 100 have a lower-than-average cost of living.

Which U.S. state has the highest cost of living?

Hawaii has the highest cost of living in the U.S., primarily due to high housing costs and the need to import many goods.

What category affects the cost of living the most?

Housing has the most significant impact on the cost of living in an area, as it is where most residents spend the majority of their income.

How much money do you need to live comfortably in a high-cost state?

The amount of money needed to live comfortably in a high-cost state varies significantly from person to person. You need to consider the number of people in your household, typical expenses, housing costs, lifestyle, and other factors to determine the amount of money you need.

Are high salaries in expensive states enough to offset costs?

Whether a high salary is enough to offset costs in an expensive state depends on factors such as housing costs, tax rates, and the cost of living in a specific area. Your lifestyle and spending also impact whether your salary can offset high costs.

Methodology

The cost of living index compares the costs of groceries, housing, utilities, transportation, healthcare, and miscellaneous expenses across states in the U.S. with the national average, which is represented as 100. So, if a state has a cost of living index of 120, the cost of living in that state is 20% above the national average.

Tonya Sisler

Tonya Sisler's work focuses on making car insurance and financial topics clear, accessible and actionable for consumers.

On this page

Top 10 highest cost-of-living states in the U.S.
Cost of living by category in the most expensive states
How a high cost of living impacts your lifestyle
Where living costs are high, but some expenses stay low
How to budget for life in a high-cost state
High cost of living vs. high quality of life
Factors contributing to a high cost of living
Compare your state’s cost of living before you move
Frequently asked questions
Methodology

Highest cost of living states in the U.S.