From Alabama to Wyoming: The Cost of Living Across America

If you’re looking for the best place to live on a budget, you’ll find that some states will let you spread your dollars further than others. Using data from the Missouri Economic Research and Information Center, and the Bureau of Labor Statistics, GOBankingRates determined the cost-of-living index in each state compared to the overall national average. The study included costs associated with six categories: housing, utilities, groceries, healthcare, transportation and miscellaneous expenses.

Pursuing a new career, looking for a cheap place to retire or simply seeking a change of scenery that won’t break the bank? Consider what it will cost to get by in that state before you hire a mover.

• Total annual expenditures: $58,964

Alabama is the fourth-cheapest state in America — a jump from No. 8 in 2021. Utilities here are actually 7% more expensive than in the country as a whole, but everything else is cheaper — especially housing, which costs 30.4% less.

• Total annual expenditures: $84,731

The largest state in America comes with a cost of living that’s almost equally enormous — 26.6% above the national average, to be exact. In 2021, that number was a bit higher, at 31.3%.

• Total annual expenditures: $70,810

Although it was smack in the middle of the list at No. 25 in 2017, Arizona is now among the 36 cheapest states in America. The cost of living there is 5.8% higher than the country as a whole, as compared to being 4.4% lower in 2017.

• Total annual expenditures: $60,637

Arkansas jumped from the fourth-cheapest state in the U.S. to No. 11. You can expect to pay 9.4% less there to maintain your lifestyle than the average American. The biggest savings are in housing, where the state’s average is 22.1% lower than the rest of the country.

• Total annual expenditures: $92,093

California is the third most expensive state in the entire country, with a cost of living that’s 37.6% higher than the national average. Everything is more expensive in the Golden State, but at an astronomical 94% above the national average, housing is the real whopper.

• Total annual expenditures: $70,007

In Colorado, the cost of living is 4.6% above the national average, but there are some wild swings in the state between the categories. Housing costs, for example, are 20% above average, but residents pay 8.9% less for utilities. Healthcare costs are 4% lower than average.

• Total annual expenditures: $78,172

Since 2018, when the New England state fell two spots from seventh priciest in the country to ninth, now Connecticut is back to the seventh spot. In all, the cost of living is 16.8% higher there than in the rest of the country. Life is costlier than average across all categories — none more so than utilities, which comes in at 30.3% above the national mean and housing, which is 26% higher.

• Total annual expenditures: $70,676

Delaware residents can expect to pay 5.6% more to live in the First State. Groceries are 5.3% more expensive, and miscellaneous expenses are 7% pricier. Even housing is 5% more expensive.

• Total annual expenditures: $68,802

In 2021, the cost of living in the Sunshine State was less than 1% lower than the rest of the country, but now it’s 2.8% higher. Groceries, housing and utilities are all a few points higher than the national average, while transportation and healthcare are a bit lower.

Florida is also home to some of the best cities to own investment property.

• Total annual expenditures: $59,298

Georgians enjoy a cost of living that’s 11.4% lower than the rest of the country. That makes Georgia the fifth-cheapest state in the U.S. All expenses, across the board, are lower than the national average, with housing being almost 25% cheaper than the rest of the country.

• Total annual expenditures: $123,148

Hawaii is the most expensive state to live in America by a long shot for many years in a row. This year, however, island residents can expect to pay an astronomical 84% more than the national average overall. Most of the pain can be traced to home purchases, which cost an astounding 314% more than average. And rent isn’t much of a bargain, either.

• Total annual expenditures: $66,660

Idaho boasts a fairly cheap cost of living that’s less than a full percentage point lower than the national average. Some expenditures are less expensive than average, such as groceries and housing, but others are higher, including transportation, which is 12.6% above the country’s mean price, and housing, which is 5% higher.

• Total annual expenditures: $61,975

Coming in at No. 17 is Illinois. Healthcare is 5.8% higher than national average, but the remainder of the expenses come at under the national average.

• Total annual expenditures: $60,168

Indiana comes in at No. 8 of the cheapest states in America. All expenditures fall under the national average, with housing being 22.6% lower than average, translating to only $10,262 per year.

• Total annual expenditures: $59,700

The cost of living in Iowa is cheaper in every category except healthcare, which is right at the national average. It is also the 7th cheapest state on this list.

• Total annual expenditures: $58,562

Kansas residents spend about 12.5% less than the average American to get by, making it the third-cheapest state in the country. Although life is cheaper across the board, housing costs are a full 28.9% lower than average.

• Total annual expenditures: $63,515

Kentucky is No. 22 on the list, with a cost of living overall that is 5.1% cheaper than the rest of the country. This doesn’t translate to all of the expenses, however. While housing is 22.7% cheaper than the rest of the country,  utilities are 6.1% higher, and miscellaneous expenditures are 7% higher.

• Total annual expenditures: $62,645

Louisiana has continued to get cheaper over the course of the last few years. Taking its place at No. 18 on the list, cost of living is 6.4% cheaper than the national median. Housing is more than 13% less expensive than the national average.

• Total annual expenditures: $77,168

In Maine, the cost of living is 15.3% higher than average. Residents there have to pay steep housing costs, which are 25% more than the national mean. At 17% higher than average, miscellaneous expenses aren’t cheap either!

• Total annual expenditures: $82,991

Maryland is the sixth-most expensive state in America. The cost of living is 24% more expensive than the national average, thanks largely to an enormous housing bill that’s 64% higher than what the rest of the country can expect to pay.

• Total annual expenditures: $100,191

Massachusetts clocks in as the second-most expensive state in the country, up from No. 5 in 2017. The cost of housing is a staggering 124% higher than in the rest of the nation, and all other expenditures are also significantly higher than the rest of the country.

• Total annual expenditures: $61,708

Michiganders pay an average of 7.8% less than the average American for overall living expenses. However, the cost of utilities, healthcare and transportation are only a few percentage points lower than the rest of the country.

• Total annual expenditures: $65,255

In the Land of 10,000 Lakes, Minnesotans pay not much less than the national average to live — 4.5% less, to be exact. The biggest break is housing, which costs 15.3% less. At a cost of 12.3% higher than the national average, however, healthcare is the most expensive category.

• Total annual expenditures: $56,889

With a cost of living that is 15% lower than the national average, Mississippi is the cheapest place to live in the U.S. Utilities are 11.1% less than the national average, groceries are 6.6% less and housing is a full 32.6% cheaper.

• Total annual expenditures: $59,633

Missouri, the Show-Me State, is the sixth-cheapest state in America.  Housing there is 20.1% cheaper than the national average. All the rest of the expenses are within five to ten percentage points less than the rest of the nation.

• Total annual expenditures: $70,141

The Big Sky State has an overall cost of living that’s higher than the national average — but only by 4.8%. The state stays very close to the overall national average thanks to housing costs that are 22.5% cheaper than in the country as a whole.

• Total annual expenditures: $61,507

In Nebraska, the cost of living is 8.1% lower than the national average, making it one of the 12 cheapest states in America. Every category is cheaper across the board, except for healthcare, which costs 3.4% more than in the rest of the country.

• Total annual expenditures: $69,070

If you want to live in Nevada, it will cost you 3.2% more than what the average American pays. The biggest expense is utilities, which costs 16% more than the national average but healthcare is not far behind, at 15.2% more.

• Total annual expenditures: $77,703

In New Hampshire, the cost of living is 16.1% higher than average. Healthcare is the biggest drag — it comes in a full 30.6% higher than in the country as a whole. At 27% higher than average, miscellaneous expenses aren’t cheap, either.

• Total annual expenditures: $75,227

The biggest reason why the cost of living in the Garden State is 12.4% higher than the national average is housing, which costs 32% more than in the country as a whole. In fact, everything is more expensive in New Jersey, except healthcare, which is 4.9% lower.

• Total annual expenditures: $62,912

With a cost of living that’s more than 6% lower than the national average, New Mexico is one of the 20 cheapest states in the country. Utilities are more than 10.4% less expensive than average, and housing is 11.6% lower. Only healthcare is a hair over the national average.

• Total annual expenditures: $90,018

In 2017, it cost more to live in New York than any other state in the contiguous U.S., not counting Washington, D.C. Here in 2023, however, New York has dropped to the fourth most expensive state. Most of the reason for the shift is due to housing, which costs 94% more than the national average.

• Total annual expenditures: $64,050

Healthcare costs in the Tar Heel State are 4.3% above the national average, but everything else comes in just under — everything, that is, except for healthcare, which is 9.1% higher. However, housing is 10% lower than the rest of the country.

• Total annual expenditures: $64,987

With a cost-of-living index that’s 2.9% lower than America as a whole, North Dakota is right in the middle of this list. Healthcare costs are high — 13.8% above average — but at 9.3% below average, housing costs are relatively forgiving.

• Total annual expenditures: $61,507

In Ohio, the cost of living is 8.1% cheaper than the country overall. Everything else is less expensive, but only by the smallest margins — except for housing, which comes with a steep discount of nearly 25%.

• Total annual expenditures: $57,424

In Oklahoma, the general cost of living is 14.2% lower than the national average, which accounts for the state’s drop from the fifth cheapest in the country in 2017 to second cheapest in 2023. The real savings, however, are in housing: Residents pay 29.8% less than the rest of the country.

• Total annual expenditures: $81,117

Only Indiana climbed higher on the most-expensive list between 2017 and 2018 compared to Oregon. This Northwest state has a cost of living that’s 21.2% higher than the national average.

• Total annual expenditures: $65,723

It’s 1.8% more expensive to live in Pennsylvania than in the country as a whole, with miscellaneous costs nearly mirroring the national average. Costs vary wildly here, with housing costs at 11.9% lower than the national average, but utilities are 8.9% higher.

• Total annual expenditures: $75,562

Rhode Island is the smallest state in the country, but at 12.9% above the national average, the cost of living there is one of the biggest. This New England state is in the top 15 most expensive states.

• Total annual expenditures: $63,113

In South Carolina, the cost of living is 5.7% lower than the national average, compared to 0.5% higher in 2017. Although housing costs 18.4% less, utilities cost 10.6% more than average.

• Total annual expenditures: $63,247

South Dakotans pay 5.5% less than the rest of the country. Housing here is 7.1 percentage points lower than average, but groceries are 4.3% higher than the rest of the country.

• Total annual expenditures: $60,369

Residents of the Volunteer State see a cost of living that is 9.8% lower than the national average. Tennessee is now the tenth cheapest state to live in.

• Total annual expenditures: $61,908

The overall cost of living in Texas is 7.5% lower than the national average, which puts the state in America’s top 15 cheapest. Housing leads the way at 15.3% lower. Groceries, meanwhile, cost 9.7% less, and miscellaneous costs are 3.1% lower.

Oh yeah, and there’s no state income tax.

• Total annual expenditures: $68,802

Utah holds the spot of 29th cheapest state, at 2.8% higher than the national average. Housing and transportation are both 8% above the rest of the country but healthcare is 8.1% lower.

• Total annual expenditures: $77,570

Vermont joins its New England neighbors with a high cost of living — 15.9% above average in this case. Housing tips the scales, costing nearly 32% more than the national mean price. Transportation costs 18.3% more, and utilities top the average by 22.3%.

• Total annual expenditures: $68,802

With a cost of living that’s 2.8% higher than the national average, Virginia comes in at No. 31 on the list. That’s five places higher than 2017, when Virginia ranked No. 28.

• Total annual expenditures: $76,432

Washington state is 14.2% more expensive than the national average. The biggest burden in the pricey Northwest state is housing, which costs 26% more than in the country as a whole. At 20.6% above average, healthcare costs aren’t much better. And transportation is 14% above average. Only utilities are cheaper — they cost 11.6% less than the national average.

• Total annual expenditures: $60,235

Although transportation costs 11.2% more than average in West Virginia and healthcare expenses are 1.8% higher, everything else in the state is cheaper. The biggest break is in housing, which is 31.2% lower.

• Total annual expenditures: $63,916

Housing in Wisconsin costs 14.7% less than it does in the country as a whole. That’s a large part of the reason why the state’s overall cost of living is 0.5% less than the national average, even though healthcare costs 16.8% more.

• Total annual expenditures: $61,908

The sparsely populated Western state of Wyoming remains the 16th cheapest state, since 2017. The cost of living there, however, is still 7.5% lower than in the country as a whole.

With a few exceptions, the cheapest states in America are concentrated in the South and Midwest. The most expensive states are on the West Coast, the Northeast and the District of Columbia. Overall, the top 30 states all fall below the national average.

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_{Methodology: GOBankingRates analyzed the cost of living in every state across America by looking at the Missouri Economic Research and Information Center’s 2022 annual cost of living indices and factoring them out using the Bureau of Labor Statistics 2021 consumer expenditure survey across seven factors: (1) total annual expenditures; (2) annual grocery (“food at home”) expenditures; (3) annual housing (“shelter”) expenditures; (4) annual utilities (“utilities, fuel, and public services”) expenditures; (5) annual transportation (“”Gasoline, other fuels, and motor oil” + “other vehicle expenses”) expenditures; (6) annual healthcare expenditures; and (7) annual miscellaneous expenditures. Only factor (1) was used to determine final rankings. All data was collected and is up to date as of February 23, 2023.}

Jordan Rosenfeld contributed to the reporting of this article.