Cost of Living by State

Mississippi consistently ranks as the most affordable state, with a cost of living index around 85 (15% below the national average). Oklahoma, Arkansas, Kansas, and Missouri also rank among the cheapest. Low housing costs are the primary driver of affordability in these states.

Hawaii is the most expensive state with a cost of living index around 190 — nearly double the national average — driven by extreme housing and food import costs. California (160+), New York (125+), Massachusetts (120+), and Alaska (125+) also rank among the most expensive.

High cost-of-living states often have higher state income taxes to fund public services. However, 9 states have no income tax (Florida, Texas, Nevada, etc.). The total tax burden (income + property + sales tax) varies independently of cost of living — some expensive states have high taxes, others don't.

Moving to a lower cost-of-living state can significantly improve purchasing power, especially if you can maintain your current salary through remote work. However, consider tradeoffs: job market quality, weather, healthcare access, school quality, and proximity to family. The financial gain is highest for remote workers who can keep a high-COL salary.