Wealthy PotCheapest States to Live In: All 50 States Ranked by Cost of Living
Arkansas is the cheapest state to live in. Prices there were 13.1% below the national average in 2024, according to the Bureau of Economic Analysis (BEA), which measures price levels in every state. Mississippi, Iowa, Oklahoma and Louisiana round out the five cheapest. The most expensive is California, where prices were 10.7% above average, about 27% higher than in Arkansas. Housing explains most of the gap: median rent ranges from $883 a month in West Virginia to $2,104 in California, while groceries, cars and other goods cost much the same everywhere.
Table of Contents
The Short Answer
- Cheapest state: Arkansas, price level 86.9 (U.S. = 100), then Mississippi (87.0), Iowa (87.8) and Oklahoma (87.8).
- Most expensive: California (110.7), Hawaii (110.0) and the District of Columbia (109.9).
- Cheapest rent: West Virginia, with a median of $883 a month including utilities, against $1,487 nationally (Census, 2024).
- Cheapest homes: West Virginia, median home value $170,800, against $360,600 nationally.
- Cheap does not mean better off. Incomes are lower in most cheap states. After adjusting for prices, income per person was highest in District of Columbia, Wyoming, Connecticut and Massachusetts, and lowest in Mississippi.
- 6 states collect no individual income tax: South Dakota, Wyoming, Texas, Nevada, Alaska and Florida. New Hampshire and Washington do not tax wages either.
The 10 Cheapest States to Live In
Ranked by BEA's regional price parity for 2024, which compares the price of everything households buy, rent included, with the national average. A price level of 87 means prices about 13% below average.
| Rank | State | Price level (U.S. = 100) | Median rent | Median home value | Median household income |
|---|---|---|---|---|---|
| 1 | Arkansas | 86.9 | $982 | $215,600 | $62,106 |
| 2 | Mississippi | 87.0 | $990 | $186,500 | $59,127 |
| 3 | Iowa | 87.8 | $981 | $227,300 | $75,501 |
| 4 | Oklahoma | 87.8 | $1,044 | $222,100 | $66,148 |
| 5 | Louisiana | 88.2 | $1,064 | $223,200 | $60,986 |
| 6 | South Dakota | 88.6 | $999 | $289,600 | $76,881 |
| 7 | Alabama | 88.8 | $1,077 | $233,300 | $66,659 |
| 8 | North Dakota | 89.0 | $980 | $266,100 | $77,871 |
| 9 | West Virginia | 89.5 | $883 | $170,800 | $60,798 |
| 10 | Kansas | 90.1 | $1,079 | $238,700 | $75,514 |
The cheapest states cluster in the South and the Plains. What makes them cheap is housing: Arkansas's rent price level was 58.2 and West Virginia's 54.2, well under two-thirds of the national level, while their prices for goods were only a few percent below average. Living as well as $75,000 does at national-average prices takes about $65,200 in Arkansas; our cost of living calculator runs the same comparison between any two states or 387 metro areas.
The 10 Most Expensive States
| Rank | State | Price level (U.S. = 100) | Median rent | Median home value | Median household income |
|---|---|---|---|---|---|
| 1 | California | 110.7 | $2,104 | $759,500 | $100,149 |
| 2 | Hawaii | 110.0 | $1,942 | $875,900 | $100,745 |
| 3 | District of Columbia | 109.9 | $1,931 | $733,400 | $109,707 |
| 4 | New Jersey | 108.8 | $1,800 | $496,000 | $104,294 |
| 5 | New York | 107.9 | $1,634 | $449,800 | $85,820 |
| 6 | Washington | 107.0 | $1,824 | $602,200 | $99,389 |
| 7 | Massachusetts | 105.8 | $1,848 | $607,400 | $104,828 |
| 8 | Maryland | 105.0 | $1,721 | $436,300 | $102,905 |
| 9 | New Hampshire | 104.2 | $1,558 | $458,800 | $99,782 |
| 10 | Connecticut | 103.6 | $1,550 | $396,900 | $96,049 |
The expensive end is coastal: the Pacific states, Hawaii and the Northeast corridor. Incomes there are higher too: all ten have a median household income above the national $81,604.
Cost of Living in All 50 States
Cheapest first. Property tax is the median real estate tax paid by homeowners; the last column is BEA's real (price-adjusted) personal income per person, as a percentage of the national figure.
| Rank | State | Price level | Median rent | Median home value | Median household income | Median property tax | Real income per person (U.S. = 100) |
|---|---|---|---|---|---|---|---|
| 1 | Arkansas | 86.9 | $982 | $215,600 | $62,106 | $1,113 | 93.3 |
| 2 | Mississippi | 87.0 | $990 | $186,500 | $59,127 | $1,221 | 81.9 |
| 3 | Iowa | 87.8 | $981 | $227,300 | $75,501 | $2,937 | 101.6 |
| 4 | Oklahoma | 87.8 | $1,044 | $222,100 | $66,148 | $1,672 | 99.2 |
| 5 | Louisiana | 88.2 | $1,064 | $223,200 | $60,986 | $1,187 | 95.9 |
| 6 | South Dakota | 88.6 | $999 | $289,600 | $76,881 | $2,940 | 116.8 |
| 7 | Alabama | 88.8 | $1,077 | $233,300 | $66,659 | $890 | 88.2 |
| 8 | North Dakota | 89.0 | $980 | $266,100 | $77,871 | $2,550 | 110.3 |
| 9 | West Virginia | 89.5 | $883 | $170,800 | $60,798 | $881 | 84.6 |
| 10 | Kansas | 90.1 | $1,079 | $238,700 | $75,514 | $2,983 | 100.0 |
| 11 | Nebraska | 90.1 | $1,102 | $263,100 | $76,376 | $3,739 | 110.3 |
| 12 | Kentucky | 90.2 | $998 | $226,000 | $64,526 | $1,611 | 88.3 |
| 13 | Missouri | 90.8 | $1,067 | $254,400 | $71,589 | $2,021 | 97.7 |
| 14 | Tennessee | 91.9 | $1,284 | $332,600 | $71,997 | $1,488 | 99.0 |
| 15 | New Mexico | 92.2 | $1,117 | $279,900 | $67,816 | $1,776 | 86.4 |
| 16 | Wyoming | 92.7 | $998 | $339,500 | $75,532 | $1,947 | 127.5 |
| 17 | Ohio | 92.8 | $1,090 | $239,800 | $72,212 | $2,937 | 95.0 |
| 18 | Indiana | 93.3 | $1,104 | $243,500 | $71,959 | $1,798 | 93.9 |
| 19 | South Carolina | 93.7 | $1,272 | $299,500 | $72,350 | $1,337 | 88.6 |
| 20 | Wisconsin | 94.1 | $1,142 | $294,700 | $77,488 | $3,680 | 98.4 |
| 21 | North Carolina | 94.3 | $1,338 | $333,000 | $73,958 | $2,044 | 95.1 |
| 22 | Montana | 94.6 | $1,177 | $425,400 | $75,340 | $2,939 | 100.0 |
| 23 | Idaho | 95.5 | $1,384 | $446,400 | $81,166 | $1,912 | 89.2 |
| 24 | Michigan | 96.2 | $1,168 | $254,200 | $72,389 | $2,988 | 90.5 |
| 25 | Georgia | 96.3 | $1,506 | $343,300 | $79,991 | $2,554 | 89.5 |
| 26 | Maine | 97.0 | $1,210 | $341,900 | $76,442 | $3,103 | 97.1 |
| 27 | Texas | 97.1 | $1,475 | $313,200 | $79,721 | $4,108 | 98.4 |
| 28 | Pennsylvania | 97.6 | $1,252 | $277,600 | $77,545 | $3,214 | 99.0 |
| 29 | Vermont | 98.0 | $1,319 | $352,800 | $82,730 | $5,026 | 99.5 |
| 30 | Minnesota | 98.6 | $1,291 | $344,600 | $87,117 | $3,501 | 104.8 |
| 31 | Utah | 98.9 | $1,593 | $545,200 | $96,658 | $2,648 | 93.1 |
| 32 | Delaware | 99.8 | $1,530 | $371,600 | $87,534 | $1,750 | 93.2 |
| 33 | Illinois | 100.0 | $1,322 | $280,700 | $83,211 | $5,399 | 101.9 |
| 34 | Nevada | 100.0 | $1,709 | $455,500 | $81,134 | $2,143 | 95.5 |
| 35 | Arizona | 100.7 | $1,672 | $426,000 | $81,486 | $1,828 | 89.3 |
| 36 | Virginia | 101.1 | $1,646 | $403,500 | $92,090 | $2,872 | 104.6 |
| 37 | Rhode Island | 102.3 | $1,418 | $455,700 | $83,504 | $4,886 | 94.4 |
| 38 | Alaska | 102.4 | $1,444 | $376,500 | $95,665 | $3,976 | 101.8 |
| 39 | Colorado | 103.1 | $1,822 | $574,600 | $97,113 | $2,828 | 110.2 |
| 40 | Oregon | 103.4 | $1,597 | $497,500 | $85,220 | $3,895 | 93.7 |
| 41 | Florida | 103.4 | $1,812 | $396,900 | $77,735 | $2,993 | 96.5 |
| 42 | Connecticut | 103.6 | $1,550 | $396,900 | $96,049 | $6,573 | 125.4 |
| 43 | New Hampshire | 104.2 | $1,558 | $458,800 | $99,782 | $6,707 | 109.2 |
| 44 | Maryland | 105.0 | $1,721 | $436,300 | $102,905 | $4,144 | 103.2 |
| 45 | Massachusetts | 105.8 | $1,848 | $607,400 | $104,828 | $6,080 | 121.0 |
| 46 | Washington | 107.0 | $1,824 | $602,200 | $99,389 | $4,729 | 108.8 |
| 47 | New York | 107.9 | $1,634 | $449,800 | $85,820 | $6,542 | 108.4 |
| 48 | New Jersey | 108.8 | $1,800 | $496,000 | $104,294 | $9,358 | 106.7 |
| 49 | District of Columbia | 109.9 | $1,931 | $733,400 | $109,707 | $4,594 | 138.3 |
| 50 | Hawaii | 110.0 | $1,942 | $875,900 | $100,745 | $2,385 | 88.3 |
| 51 | California | 110.7 | $2,104 | $759,500 | $100,149 | $5,369 | 106.5 |
Where Your Money Goes Furthest
Low prices are only half the picture, because pay tends to be low where prices are low. BEA's real personal income adjusts each state's income per person for its price level, which shows how much people can actually buy. On that measure the leaders are not the cheapest states:
- District of Columbia: 138.3% of the national level (price level 109.9)
- Wyoming: 127.5% of the national level (price level 92.7)
- Connecticut: 125.4% of the national level (price level 103.6)
- Massachusetts: 121.0% of the national level (price level 105.8)
- South Dakota: 116.8% of the national level (price level 88.6)
- North Dakota: 110.3% of the national level (price level 89.0)
At the other end, Mississippi (81.9), West Virginia (84.6) and New Mexico (86.4) have low prices but even lower incomes. South Dakota and North Dakota combine both: prices among the ten lowest and real income per person above the national level (116.8 and 110.3). If you keep your income when you move, for example a remote job, a pension or Social Security, a cheap state raises your standard of living directly. If you will look for work locally, compare local pay as well.
States With No Income Tax
Six states collected no individual income tax at all in fiscal 2025, according to the Census Bureau's survey of state tax collections: South Dakota, Wyoming, Texas, Nevada, Alaska and Florida. Two more do not tax wages:
- New Hampshire does not tax W-2 wages, and its tax on interest and dividends was repealed for taxable periods beginning after December 31, 2024 (New Hampshire Department of Revenue Administration).
- Washington has no individual income tax but taxes certain capital gains. Its Department of Revenue says a new 9.9% income tax will apply to adjusted gross income above $1 million from January 1, 2028.
Tennessee's individual income tax collections were about $2.1 million in fiscal 2025, a tiny amount for a state its size; check the Tennessee Department of Revenue for current rules. No income tax does not mean low taxes overall: states without one lean on sales and property taxes instead. Texas homeowners paid a median $4,108 in property tax in 2024, above the national $3,211. See average property tax by state.
How to Choose an Affordable State
- Compare the exact places, not the state. Metro areas differ widely inside a state. Use the cost of living calculator to compare your current metro area with the one you are considering.
- Price your own housing. Rent and home prices drive most of the difference. Check current listings and the average rent and home price by state.
- Add up taxes. Combine state income tax on your income with property tax and sales tax; a no-income-tax state can still cost more.
- Check what you will earn there. If your income depends on local jobs, compare pay for your occupation, not only prices.
- Count the costs of moving. Moving, deposits, car registration and new insurance come before any savings. Build them into your budget.
Sources & Methodology
- BEA, Regional Price Parities by State and Metro Area: 2024 estimates released February 19, 2026, downloaded from SARPP.zip (tables SARPP and SARPI). Next release December 10, 2026.
- Census Bureau, American Community Survey 2024 1-year, table-based summary file: tables B25064, B25077, B19013 and B25103, state rows.
- Census Bureau, Annual Survey of State Government Tax Collections, fiscal 2025: item T40, individual income taxes (thousands of dollars).
- New Hampshire Department of Revenue Administration, Interest & Dividends Tax and Washington Department of Revenue, Income tax.
Method notes. States are ranked by the BEA regional price parity for all items in 2024, which compares the prices of the goods and services households buy, including rents, across states; it does not include taxes. ACS medians are 2024 1-year estimates and carry margins of error, wider for small states. "Real income per person" divides BEA's real per capita personal income for each state by the U.S. figure; personal income includes wages, benefits, pensions, investment income and transfers. The District of Columbia is shown alongside the states. This page will be updated when BEA publishes 2025 price parities.
This article is for general information and is not financial advice. Figures are from the Bureau of Economic Analysis, the Census Bureau and state revenue departments, checked against the primary sources on 2026-10-09. Rankings and percentages are our own calculations from published data. Your own costs depend on where in a state you live, your housing and your household.
FAQ
What is the cheapest state to live in?
Arkansas, where prices were 13.1% below the national average in 2024 (BEA regional price parity 86.9). Mississippi (87.0) was a close second, followed by Iowa and Oklahoma.
What is the most expensive state to live in?
California, at 110.7, then Hawaii (110.0). The District of Columbia, at 109.9, is about as expensive.
What is the cheapest state to rent in?
West Virginia, with a median gross rent of $883 a month in 2024 (Census ACS), including utilities paid by the renter. North Dakota ($980) and Iowa ($981) were next.
What is the cheapest state to buy a house?
West Virginia, with a median home value of $170,800 in 2024, followed by Mississippi ($186,500). Values are owner estimates from the Census ACS, not sale prices.
Which states have no income tax?
South Dakota, Wyoming, Texas, Nevada, Alaska and Florida collected no individual income tax in fiscal 2025 (Census). New Hampshire and Washington do not tax wages; Washington plans a 9.9% tax on income above $1 million from 2028.
Is a cheap state always the best deal?
No. Incomes are lower in most cheap states, so locals are not necessarily better off. A cheap state helps most when you bring your income with you, such as remote work or retirement income.
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"Cheapest States to Live In: All 50 States Ranked by Cost of Living." Wealthy Pot, 2026. https://wealthypot.com/cheapest-states-to-live-in/
