Monday, June 15, 2026·2026 Edition
Cheapest States to Live In (2026)
States with the lowest cost of living index. Your dollar goes furthest here.
#1 State
Mississippi
$75,125 take-home
States Ranked
50
Median: North Carolina
Spread
$3,150
#1 vs #50 difference
Key Takeaways
Cost of living varies dramatically across states. Mississippi is the cheapest with an index of 83 (17% below the national average), while Hawaii is the most expensive listed here at 192. A $100K salary in Mississippi has the purchasing power of $90,512 elsewhere.
Low-cost states cluster in the South and Midwest. Mississippi, West Virginia, Arkansas, Oklahoma, Alabama are the most affordable. Housing typically accounts for the biggest cost-of-living difference — median home prices in low-cost states can be half or less of high-cost states.
Full Rankings
| # | State | Tax Rate | Type | Take-Home | Monthly | Eff. Rate | Cost Index | Cost-Adj. |
|---|---|---|---|---|---|---|---|---|
| 1 | Mississippi | 4% | Flat | $75,125 | $6,260 | 24.9% | 83 | $90,512 |
| 2 | West Virginia | 4.82% | Grad. | $75,992 | $6,333 | 24.0% | 83 | $91,557 |
| 3 | Arkansas | 3.9% | Grad. | $76,590 | $6,383 | 23.4% | 86 | $89,058 |
| 4 | Oklahoma | 4.5% | Grad. | $76,200 | $6,350 | 23.8% | 87 | $87,586 |
| 5 | Alabama | 5% | Grad. | $75,875 | $6,323 | 24.1% | 88 | $86,222 |
| 6 | Iowa | 3.8% | Flat | $75,325 | $6,277 | 24.7% | 89 | $84,635 |
| 7 | Missouri | 4% | Flat | $75,125 | $6,260 | 24.9% | 89 | $84,410 |
| 8 | Indiana | 2.95% | Flat | $76,175 | $6,348 | 23.8% | 90 | $84,639 |
| 9 | Kansas | 5.58% | Grad. | $75,498 | $6,292 | 24.5% | 90 | $83,887 |
| 10 | Kentucky | 3.5% | Flat | $75,625 | $6,302 | 24.4% | 90 | $84,028 |
| 11 | Ohio | 2.75% | Flat | $76,375 | $6,365 | 23.6% | 90 | $84,861 |
| 12 | Tennessee | 0% | None | $79,125 | $6,594 | 20.9% | 90 | $87,917 |
| 13 | Louisiana | 3% | Flat | $76,125 | $6,344 | 23.9% | 91 | $83,654 |
| 14 | Michigan | 4.25% | Flat | $74,875 | $6,240 | 25.1% | 91 | $82,280 |
| 15 | Nebraska | 4.55% | Grad. | $76,168 | $6,347 | 23.8% | 91 | $83,701 |
| 16 | New Mexico | 5.9% | Grad. | $75,290 | $6,274 | 24.7% | 91 | $82,736 |
| 17 | North Dakota | 2.5% | Grad. | $77,500 | $6,458 | 22.5% | 92 | $84,239 |
| 18 | South Carolina | 6% | Grad. | $75,225 | $6,269 | 24.8% | 92 | $81,766 |
| 19 | South Dakota | 0% | None | $79,125 | $6,594 | 20.9% | 92 | $86,005 |
| 20 | Georgia | 5.19% | Flat | $73,935 | $6,161 | 26.1% | 93 | $79,500 |
| 21 | Illinois | 4.95% | Flat | $74,175 | $6,181 | 25.8% | 93 | $79,758 |
| 22 | Texas | 0% | None | $79,125 | $6,594 | 20.9% | 93 | $85,081 |
| 23 | Wisconsin | 7.65% | Grad. | $74,153 | $6,179 | 25.8% | 93 | $79,734 |
| 24 | Wyoming | 0% | None | $79,125 | $6,594 | 20.9% | 94 | $84,176 |
| 25 | Idaho | 5.3% | Flat | $73,825 | $6,152 | 26.2% | 95 | $77,711 |
| 26 | North Carolina | 3.99% | Flat | $75,135 | $6,261 | 24.9% | 95 | $79,089 |
| 27 | Arizona | 2.5% | Flat | $76,625 | $6,385 | 23.4% | 97 | $78,995 |
| 28 | Montana | 5.65% | Grad. | $75,453 | $6,288 | 24.5% | 97 | $77,786 |
| 29 | Maine | 7.15% | Grad. | $74,478 | $6,206 | 25.5% | 98 | $75,997 |
| 30 | Pennsylvania | 3.07% | Flat | $76,055 | $6,338 | 23.9% | 98 | $77,607 |
| 31 | Minnesota | 9.85% | Grad. | $72,723 | $6,060 | 27.3% | 99 | $73,457 |
| 32 | Utah | 4.45% | Flat | $74,675 | $6,223 | 25.3% | 99 | $75,429 |
| 33 | Florida | 0% | None | $79,125 | $6,594 | 20.9% | 100 | $79,125 |
| 34 | Nevada | 0% | None | $79,125 | $6,594 | 20.9% | 101 | $78,342 |
| 35 | Delaware | 6.6% | Grad. | $74,835 | $6,236 | 25.2% | 102 | $73,368 |
| 36 | Virginia | 5.75% | Grad. | $75,388 | $6,282 | 24.6% | 103 | $73,192 |
| 37 | Colorado | 4.4% | Flat | $74,725 | $6,227 | 25.3% | 105 | $71,167 |
| 38 | Rhode Island | 5.99% | Grad. | $75,232 | $6,269 | 24.8% | 105 | $71,649 |
| 39 | Vermont | 8.75% | Grad. | $73,438 | $6,120 | 26.6% | 105 | $69,940 |
| 40 | New Hampshire | 0% | None | $79,125 | $6,594 | 20.9% | 108 | $73,264 |
| 41 | Oregon | 9.9% | Grad. | $72,690 | $6,058 | 27.3% | 110 | $66,082 |
| 42 | Washington | 0% | None | $79,125 | $6,594 | 20.9% | 110 | $71,932 |
| 43 | Connecticut | 6.99% | Grad. | $74,582 | $6,215 | 25.4% | 111 | $67,191 |
| 44 | Maryland | 5.75% | Grad. | $75,388 | $6,282 | 24.6% | 112 | $67,310 |
| 45 | New Jersey | 10.75% | Grad. | $72,138 | $6,011 | 27.9% | 115 | $62,728 |
| 46 | Massachusetts | 5% | Flat | $74,125 | $6,177 | 25.9% | 118 | $62,818 |
| 47 | New York | 10.9% | Grad. | $72,040 | $6,003 | 28.0% | 125 | $57,632 |
| 48 | Alaska | 0% | None | $79,125 | $6,594 | 20.9% | 127 | $62,303 |
| 49 | California | 13.3% | Grad. | $70,480 | $5,873 | 29.5% | 142 | $49,634 |
| 50 | Hawaii | 11% | Grad. | $71,975 | $5,998 | 28.0% | 192 | $37,487 |
Pro Tip
For remote workers, living in a low-cost state while earning a coastal salary is the best of both worlds. Your purchasing power can be 20–40% higher than colleagues in San Francisco or New York.