Cost of Living by State (2025)

How far does your income really go? See cost-adjusted purchasing power for every U.S. state.

What is the Regional Price Parity (RPP)?

The BEA's Regional Price Parity measures the price level of goods and services in a state relative to the national average (= 100). An RPP of 115 means prices are 15% above the U.S. average. An RPP of 88 means prices are 12% below average — the same income buys 14% more than at the national average.

Cost of Living Index by State — Ranked (Most to Least Expensive)

Rank	State	RPP Index	Housing RPP	$83k Adjusted	Income Tax
1	New York	115.715.7% pricier	162.3	$72,249	Yes
2	Hawaii	113.213.2% pricier	147.5	$73,845	Yes
3	California	112.512.5% pricier	152.2	$74,304	Yes
4	Massachusetts	110.910.9% pricier	148.6	$75,376	Yes
5	New Jersey	110.210.2% pricier	143.7	$75,855	Yes
6	Connecticut	108.38.3% pricier	132.4	$77,186	Yes
7	Maryland	107.47.4% pricier	138.9	$77,832	Yes
8	Washington	107.17.1% pricier	140.2	$78,050	None
9	Vermont	106.16.1% pricier	129.4	$78,786	Yes
10	New Hampshire	106.06.0% pricier	135.8	$78,860	None
11	Rhode Island	105.65.6% pricier	133.1	$79,159	Yes
12	Alaska	105.15.1% pricier	122.3	$79,536	None
13	Oregon	104.84.8% pricier	131.5	$79,763	Yes
14	Colorado	104.34.3% pricier	134.7	$80,146	Yes
15	Virginia	102.82.8% pricier	120.4	$81,315	Yes
16	Delaware	102.62.6% pricier	118.4	$81,474	Yes
17	Utah	102.12.1% pricier	122.5	$81,873	Yes
18	Nevada	101.71.7% pricier	115.8	$82,195	None
19	Maine	101.41.4% pricier	110.7	$82,438	Yes
20	Florida	101.21.2% pricier	110.3	$82,601	None
21	Arizona	99.40.6% cheaper	105.7	$84,097	Yes
22	Minnesota	98.91.1% cheaper	101.2	$84,522	Yes
23	Idaho	98.51.5% cheaper	104.3	$84,865	Yes
24	Illinois	98.31.7% cheaper	97.6	$85,038	Yes
25	Montana	97.82.2% cheaper	101.5	$85,472	Yes
26	Georgia	97.12.9% cheaper	98.4	$86,089	Yes
27	Texas	96.83.2% cheaper	93.2	$86,355	None
28	Pennsylvania	96.43.6% cheaper	90.2	$86,714	Yes
29	North Carolina	96.23.8% cheaper	91.7	$86,894	Yes
30	Wyoming	96.13.9% cheaper	91.2	$86,984	None
31	Wisconsin	95.44.6% cheaper	88.4	$87,623	Yes
32	Michigan	94.55.5% cheaper	82.5	$88,457	Yes
33	South Carolina	94.35.7% cheaper	86.7	$88,645	Yes
34	North Dakota	93.66.4% cheaper	81.5	$89,308	Yes
35	Ohio	93.16.9% cheaper	77.4	$89,787	Yes
36	Tennessee	92.67.4% cheaper	82.3	$90,272	None
37	New Mexico	92.47.6% cheaper	83.5	$90,468	Yes
38	South Dakota	92.17.9% cheaper	80.2	$90,762	None
39	Indiana	91.88.2% cheaper	73.6	$91,059	Yes
40	Nebraska	91.28.8% cheaper	75.4	$91,658	Yes
41	Louisiana	91.09.0% cheaper	75.8	$91,859	Yes
42	Missouri	90.99.1% cheaper	74.5	$91,960	Yes
43	Kansas	90.89.2% cheaper	74.3	$92,062	Yes
44	Iowa	90.39.7% cheaper	72.1	$92,571	Yes
45	Kentucky	89.910.1% cheaper	70.3	$92,983	Yes
46	Oklahoma	89.710.3% cheaper	69.8	$93,191	Yes
47	Alabama	88.911.1% cheaper	67.7	$94,029	Yes
48	West Virginia	88.411.6% cheaper	66.3	$94,561	Yes
49	Arkansas	88.211.8% cheaper	65.4	$94,776	Yes
50	Mississippi	86.113.9% cheaper	60.8	$97,087	Yes

RPP = Regional Price Parity (U.S. = 100). "$83k Adjusted" = national median income ($83,592) in real purchasing power for that state. Source: BEA Regional Price Parities 2023.

Key Findings

New York Tops the List

New York has the highest RPP (115.7), driven almost entirely by housing costs (RPP 162.3). A $100,000 salary in New York City has the equivalent purchasing power of about $86,000 nationally. Meanwhile, a $70,000 salary in Mississippi (RPP 86.1) has the same purchasing power as $81,300 nationally.

Housing is the Key Driver

The variance in housing costs (RPP from 60 to 162) dwarfs the variance in goods (RPP from 96 to 110) and services (RPP from 88 to 113). States with affordable housing consistently rank as best value regardless of income tax policy.

The Texas Trade-Off

Texas exemplifies a common trade-off: no income tax, but relatively high property taxes (1.6%+ effective rate) and a cost index of 96.8. When you account for property taxes, the true total tax burden is often higher than neighboring states with moderate income taxes.

Related Data

Household Income by State

Raw income before cost-of-living adjustment

Home Prices by State

Housing costs behind the RPP numbers

States With No Income Tax

Tax savings vs. cost-of-living trade-offs

Income Percentile Calculator

Where you rank nationally vs. in your state

Methodology & Sources

• RPP data: U.S. Bureau of Economic Analysis (BEA), "Regional Price Parities by State and Metro Area," 2023 (latest available)
• Components: BEA publishes separate RPPs for goods (tradeable items like food, clothing), rents (housing), and other services (healthcare, education, personal care)
• National median income: DQYDJ / Census CPS 2024, $83,592 household median
• Adjusted income formula: Nominal income × (100 ÷ State RPP) = real purchasing power equivalent
• Limitations: State-level RPPs mask substantial variation within states. NYC is far more expensive than upstate New York. Always research specific cities when making relocation decisions.