Average Cost of Living by State

Moving to another state can really transform your paycheck. That is, how much your salary is truly worth is heavily influenced by where you reside. If you’ve ever thought about relocating, chances are, finances had a lot to do with it. Nowadays, it is especially true. You need to look into the average cost of living by state if you want to make the most out of your budget. You may have chosen your location based on the employment market, school district, or even the weather. But you must consider the expense of living in that area as well. The amount you spend on essential costs such as housing, food, and insurance all have an impact on your cost of living, and prices for products and services vary greatly by region.

As a result, the cost of living in a state might be the difference between being financially comfortable and battling to keep your head over water. This is why it’s important to have an insight into the average cost of living by state. Which is exactly what we’re here to do for you. To compare the cost of living across states, we at Best Long Distance Movers used the Council for Community and Economic Research’s Cost of Living Index for the first quarter of 2022. The index, which analyzes regional disparities in the cost of consumer goods and services, was used to assess numerous categories, including housing, food, transportation, utilities, and health care.

Average Cost of Living by State

The cost of living is the amount of money required to meet basic living expenditures in a certain place. Rent/mortgage payments, utilities, food and groceries, healthcare, insurance, transportation, and other products and services may all be included. The cost of living tells you how much it costs to live in one place vs another. Typically, a cost of living index is employed to compare this data. We all know that the cost of living in the western world is slightly higher than in some other underdeveloped nations, which actually comprise the majority of the countries. That being said, living in the USA also comes with a higher cost of living but a higher salary than in most countries as well. Plus, living in the states offers you many opportunities that you wouldn’t find anywhere else.

However, some states have a lower cost of living than others. For instance, rates in California and Hawaii are substantially higher than in Utah and Idaho. Usually, the cost of living varies by area within a state. Rural locations often have cheaper living costs than suburban and metropolitan areas, as you can already assume.

Even metropolitan regions within the same state differ. Texas is one such case. Houston, Dallas, El Paso, San Antonio, Austin, Amarillo, and Beaumont are all proudly Texan cities, yet their costs of living vary. The more crowded Northeast is not immune to the high cost of living adjustments. New York has three high-cost areas: New York City, Long Island, and Westchester County. The Empire State does, however, feature more inexpensive places like Albany, Rochester, Utica, and Buffalo. So, don’t dismiss a whole state because it has a high total cost of living. Instead, go deeper into the figures to determine unique geographical expenses. Once you choose your perfect location, you can look into a few ways to reduce moving costs as well.

Why is the cost of living important?

The cost of living in a state has a significant influence on your capacity to save money and generate wealth. If you reside in a high-cost-of-living location and lack the necessary income, you may find yourself living paycheck to paycheck. On the other hand, a reduced cost of living indicates that costs are relatively modest, so you may have more flexibility in your budget to save, invest, or spend on products you need – or desire. While many people are drawn to big and expensive cities, the best way to live comfortably is to choose a smaller area that fits your budget while also attending to most of your needs.

However, bear in mind that earnings often reflect the cost of living. If you reside in a high-priced region, such as San Francisco or Washington, D.C., your pay will certainly be more significant to compensate. If you live in Kalamazoo, Michigan, or Jackson, Mississippi, your expenditures will be substantially cheaper – but your earnings will most likely be lower as well. So, if you plan on changing your location, make sure you have your checklist for moving out of state with you at all times.

The most affordable states to live in

When you compare the cheapest states in terms of cost of living, you’ll see that several are in the Midwest and the Southern United States. Here are some of the cheapest states to live in, as well as how they compare to the national average. If you’re gonna be moving coast-to-coast, make sure to schedule your movers ahead of time in order to avoid any troubles. Once you’ve researched the average cost of living by state, we’re sure you’ll be eager to find yourself an affordable haven in the south.

1. Mississippi

Along with legendary rivers and blues music, this Southern state also has a low cost of living. Living in Mississippi has numerous advantages. The state, defined by the enormous Mississippi River on its western border, features spectacular natural landscapes that serve as a playground for hiking, boating, fishing, and other outdoor activities and a significant agricultural supply. It is well-known for being the cradle of blues music and for its delectable Southern food. Its small and mid-sized communities are diversified sites for industry, music, art, and culture, with pleasant, welcoming residents who contribute to Mississippi’s reputation as the Hospitality State.

Living amid all of this is also quite inexpensive since Mississippi’s cost of living is lower than the national average. Whether you want to live in a city with fantastic outdoor access or a vibrant live music scene, Mississippi offers plenty of possibilities. These cities also have a range of prices to suit all budgets. If you’re thinking about relocating to Mississippi, the best long distance movers in Mississippi will be happy to help you out.

Mississippi has very cheap housing expenses, with the typical house value as low as $114,500. Over 70 percent of all Mississippi residents own their houses, and the average monthly cost for most people is $1,134. Rent in Mississippi costs an average of $762 per month, with an extra $122 per month for utility charges. Not only is it inexpensive to purchase a house in Mississippi, but so are the property tax rates. Mississippi’s statewide property tax rate is 0.80 percent, and homeowners pay an average of $879 yearly.

2. Iowa

Keep an eye on the Hawkeye State if you’re seeking a Midwestern state with a cheap cost of living. Iowa is arguably best known in the Midwest for its tremendous agricultural production of corn and cows. But it is far from the only thing that distinguishes Iowa. This magnificent state of rolling hills and calm woodlands, bordered to the east and west by the Mississippi and Missouri Rivers, features dynamic towns full of art, culture, cuisine, and shopping. It’s also one of the cheapest states in the Midwest, which is recognized for its low living costs.

With an intriguing combination of large cities and small villages, learning more about how the cost of living in Iowa varies by region can assist you in determining the ideal area to live. Even large Iowa cities are affordable, with cheap prices on everything from housing to food. If you’d like to move to one of the most affordable places in the states, long distance movers in Iowa are your best bet for a stress-free move.

Iowa is an excellent state for inexpensive housing, with housing expenses much lower than the national average. Even in big cities such as Des Moines, typical rentals are quite low. So, maybe here is where you get rid of your roommate and finally obtain a two-bedroom apartment all to yourself without breaking the bank. Even if big-city rentals are too expensive, adjacent villages will almost certainly have more inexpensive choices within easy driving or commuting distance. The statewide sales tax in Iowa is only 6%. To put it in context, if you spend $1,000 on maize, you’ll pay $60 more in taxes. Regarding national rankings, the sales tax rate falls somewhat in the center. Overall, living costs in Iowa are more than reasonable.

3. Oklahoma

The sooner you relocate to Oklahoma, the sooner you can benefit from its inexpensive cost of living. If you want to relocate to this beautiful state, interstate movers in Oklahoma are the best ones for the job. Living in Oklahoma is more than simply a pleasant experience. This kind, inviting South Central state offers everything, from thriving sectors like agriculture and aviation to bustling cities filled with country music, sports, and excellent barbeque. Outside the cities, greenery, woods, and lakes provide opportunities for outdoor leisure and learning about the state’s long and rich history. So, certainly, Oklahoma is more than simply a pleasant location to live.

Furthermore, the cost of living in Oklahoma remains modest and inexpensive even in these trying times. Almost every cost of living category, from housing to food, is lower than the national average. Some cities and towns, however, are cheaper than others.

Oklahoma is one of the most cost-effective places in this part of the USA. Housing costs in all major cities and towns are much lower than the national average. In certain regions, such as Muskogee, it is as much as 47 percent lower than the national average. However, rental prices and the cost of purchasing a home vary greatly throughout the state. Fortunately, Oklahoma provides a plethora of low-cost housing options. Let’s have a look at the typical rentals and housing expenses in Oklahoma cities and towns. On top of that, the state sales tax in Oklahoma is 4.5 percent. To put it another way, for every $1,000 you spend on great Oklahoma barbecue, for example, you’ll pay an additional $45 in tax.

4. Alabama

From housing to food, this Southern state has one of the lowest costs of living in the nation. If you like low-cost living, college sports, Southern food, and history, Alabama is the place to be. This southern state has several claims to renown, including its pivotal role in the Civil Rights Movement. People like living here because of the warm Southern hospitality, vibrant metropolis, and lovely little villages. The state also has a wide variety of outdoor recreation opportunities, ranging from Gulf Coast beaches to trekking through calm woodlands in state parks.

Alabama is known for its low-cost housing. You’ll find everything from huge metropolis to tiny, close-knit communities here, providing you with a diverse variety of living options. Although Alabama is a cheap state generally, certain areas are more costly than others. It all depends on the sort of location and price range you want. Our best long distance movers Alabama can move you stress-free to any of them.

Housing expenses in Alabama are substantially below the national average, whether you wish to reside in a large metropolis or a tiny village. Average rents in large cities such as Birmingham are on the high side, but they are still fair when compared to other major cities such as Los Angeles or New York. Even if one of Alabama’s major cities is out of your price range, you’ll most likely discover lower prices in neighboring towns. Alabama is also a fantastic spot to purchase a property because of its inexpensive housing costs. Although there are many advantages to living in Alabama, sales tax is not one of them. The statewide sales tax in Alabama is 4%. This places it towards the bottom of the state sales tax scale. If you spend $1,000 on food for a large family picnic, you’ll pay an additional $40 in taxes.

5. Arkansas

Consider Arkansas for a state with pleasant weather all year round. Arkansas’s overall cost of living is quite low, resulting in several places that are extremely inexpensive. There are large regions of less densely inhabited areas within the state’s metropolitan hubs. A rural village may be found just as readily as a metropolis.

In addition, the state offers a winning blend of outdoor activities, art, and culture. You may go to a museum one day and then go hiking the next. Because of Arkansas’ central position, it is also convenient to take weekend vacations to adjacent states. Arkansas housing is very affordable. Most cities are far lower than the national average, providing you with more options for finding a place to call home. The best cities to find a good property in are Jonesboro, Conway, and Little Rock.

Arkansas has a progressive income tax, which means you pay a percentage of your entire earnings. Rates start at zero if you earn less than $5,000 and rise to 5.5 percent if you make more than $84,500. The state has a minimum rate of 6.5 percent for sales tax. If you’d like to buy a house and move to Arkansas, feel free to call the best long distance movers in Arkansas to get you settled in quickly.

6. Indiana

Indiana is a terrific area to live if you want a decent blend of outdoor access and big-city advantages like vibrant sports and cultural scenes. This Midwestern state is well-known for its friendly people, gorgeous agricultural scenery, and passion for basketball and motor racing. Major cities such as Indianapolis and Fort Wayne have thriving arts and cultural scenes, eating, sports, and thriving businesses like manufacturing. Close to major cities are national and state parks with hiking and mountain bike routes.

Indiana’s low cost of living is one of its most valuable qualities. Even in big places such as Indianapolis, the cost of living is reasonable. Some are more costly than others, but the overall cost of living in Indiana’s largest metro regions is lower than the national average. However, the cost of commodities or other categories of living expenditures, such as utilities, vary by city. This article examines the cost of living in the state’s biggest cities. With this information, you can make an educated choice on where to live in Indiana that fits your budget and lifestyle.

Housing costs in Indiana

The cost of living in Indiana varies greatly from city to city. However, they are generally at or below the national average. Many are well below the national average. This implies that living in Indiana is incredibly inexpensive in terms of housing. And living in a major city like Indianapolis does not always mean paying more for housing. Even trendy places such as Fort Wayne have incredibly cheap housing prices. In the center of big cities, you may easily locate reasonable, budget-friendly rental solutions. Plus, the statewide sales tax is only 7%. Because individual cities or localities do not collect local sales taxes, the sales tax is the same throughout the state.

Because places like Fort Wayne and Indianapolis provide a plethora of cosmopolitan facilities, a taste of big-city living is easily accessible. However, if you want a more relaxed small-town lifestyle, you may get that here as well, and at very inexpensive prices. So, if you desire reasonable costs, picturesque scenery, and pleasant neighbors, Indiana could be the place for you. If you want to move here, feel free to call the best long distance movers in Indiana and get your free quote right away.

7. Ohio

There must be something very special in Ohio underwaters since this is the state that has produced eight United States Presidents. Ohio features a low cost of living regardless of the city you choose and convenient access to outdoor activities like hiking and rafting. The employment market seems to be promising, it is a family-friendly state that also attracts many young professionals. There is a vast network of public parks and festivities.

It’s time to crunch the figures to see whether Ohio fits into your cost of living budget. Looking at a typical price in a few key categories may help you make a more informed selection. Housing is amazingly reasonable across the state, and you don’t have to look for the cheapest areas to live in Ohio to get a decent bargain. It also means that when it comes to house searching, there is a city for any budget, whether you want to rent or purchase.

We know how other expenditures can quickly add up. Luckily, most cities in Ohio have products and services costs that are fairly close to the national average. This may make budgeting for them simpler. Even moving services are slightly cheaper in Ohio than in other states. If you’re thinking about relocating to Ohio, our long distance movers in Ohio will offer the best services at an affordable rate.

Ohio has a progressive income tax with six rates ranging from 0% to 4%. Furthermore, the state sales tax is 5.75 percent, with cities authorized to add up to 2.25 percent extra. This is the case in Cincinnati, for example.

Top most expensive states

The most costly states in The States tend to be near the two coastlines. Here are the five most costly states to live in, along with a comparison of their cost of living to the national average. If you’re planning on moving to any of these, please take the average cost of living by state seriously. You may want to change your mind soon.

1. Hawaii

Many people dream of living and working in Hawaii, an island paradise. Hawaii is a wonderfully unique place to live, with a crystal blue ocean, gorgeous volcanoes, and the Aloha spirit. The natural beauty and culture of Hawaii may be found on each island, but does it come at an exorbitant price? A lot of variables must be considered when calculating the cost of living in Hawaii. Consider them to be the line items on your monthly budget. Can you afford to live in this tropical paradise based on current prices?

Living on the island paradise

Honolulu, one of the greatest state capitals in the United States to call home, is a good illustration of what island life can offer. It also shows how much a home in paradise may cost. Overall, the cost of living in Hawaii is about 120 percent more than the national average. Rents in Hawaii rise dramatically and they continue to rise. On average, a one-bedroom apartment in Honolulu costs $3,280 a month, up 57 percent from last year. That may sound costly, but a two-bedroom apartment costs an average of $5,230 a month, up 150 percent from last year. Waikele and Honolulu are two of the most beautiful cities in Hawaii and the most popular, as well.

On a good note, housing prices are not rising at the same rate as rents. The typical house price in Honolulu is $542,500, up 5.6 percent from last year. It may sound funny, but it’s better to buy than rent right now. Plus, there is no state sales tax in Hawaii. Instead, there’s a 4% excise tax known as the GET. This is a tax on all commercial activity. This tax affects the company owner, not the client. However, most will include it in the price of their products or services, so the customer will eventually pay it. Hawaii is driven by tourism. If you’re a business owner, you may even want to move your business here. The results are likely to show very quickly. If you decide to go this route, you should call reliable long distance movers Hawaii right away.

2. New York

New York City is the world’s cultural center, but can your paycheck withstand the spotlight? You can’t get over the city’s charm no matter how many movies you’ve watched with the New York skyline in the backdrop. Whether you’re a native New Yorker or dream of relocating to the city, it’s no secret that the cost of living in New York is extreme. According to 2020 Cost of Living statistics, the cost of living in Manhattan is 147 percent more than the national average. Manhattan has a lot larger housing prices than the national average. However, because of its extensive public transit and bike infrastructure, New York City has a high walk score of 99, saving you money on transportation. Not to add that New York City gives everyday access to music, culture, theater, and everything in between.

Searching for homes in New York

On top of that, finding a place to live in New York might seem like a full-time job, what with broker fees, downpayment fees, and frequently problematic landlords. One-bedroom rentals in New York are down 15.2 percent year on year. Two-bedrooms, on the other hand, have increased 15.3 percent since Spring 2020, most likely owing to the epidemic. In April 2021, the average rent for a one-bedroom apartment is $3,684 per month. With average rentals of $5,600, $5,500, and $4,200 per month, the East Village, downtown Manhattan, and Lincoln Square are the top 3 most expensive neighborhoods in New York. Luckily, once you move to New York, we’re sure you’ll be able to land a good-paying job quickly. We suggest that you search for affordable neighbors such as Brooklyn Heights or the Bronx.

The current state sales tax is 4%, plus any extra tax imposed by the city, county, or local district. New York is also a retail destination tax, which means that if the package’s destination is inside the state of New York — even if bought online — the order will be charged appropriately. Everything from food to goods and services to healthcare costs are significantly more expensive in New York. But if you’d like to try and make it big time, there’s no better place for you than New York City. If you’ve always dreamed of moving here, the best long distance movers in New York can make this dream a reality.

3. California

Living in California means having easy access to beaches, skiing, hiking, and some unique and entertaining cities. That’s presumably why it’s the most popular place to live in the nation. However, this implies that the cost of living may vary greatly from one location to the next.

A little research may lead you to the ideal California place, combining natural beauty, delicious cuisine, and a lifestyle that fits exactly into your budget. So, don’t be put off by the high expense of living in some of California’s larger cities. You can enjoy all of the sunlight and moderate weather at almost any price range. There’s something for everyone here. If you’d like to move here, long distance movers in California offer the best services in the state.

Overall, the cost of living for housing in California is higher than the national average, with certain areas even exceeding the astronomical levels that force you to hunt for a roommate. While typical rentals in certain locations are shockingly high, others offer remarkably low prices. You could get fortunate and locate a wonderful, low-cost apartment if you broaden your search. Consider searching outside of a large city for a smaller village within driving distance. Avoid Los Angeles and San Francisco areas if you want to save up.

The statewide sales tax in California is 7.25 percent. This implies that if you purchased $1,000 on clothing, $72.50 would go entirely to taxes. That’s a reasonable markup. In addition to the state sales tax, each district may levy its own extra tax, which most do. As a result, taxes differ across cities. It also raises the cost of living in certain cities substantially more than in others.

4. Alaska

Alaska is an outdoor enthusiast’s dream, with everything from fishing and sailing to trekking a glacier. What’s more, you’ll never have to experience this natural beauty alone. Bears, eagles, moose, whales, and salmon, among other animals, are always there to keep you company. If this is the lifestyle you want, long distance movers in Alaska are here to offer you great services at reasonable prices.

Alaska is a unique and beautiful area that, although sparsely inhabited, provides many opportunities. However, living so distant from the rest of the nation might have surprisingly significant expenses. When it comes to housing, Alaskan cities outperform the national average. Not all are outrageously expensive, but those with more contemporary facilities, such as shopping malls and movie theaters, will most certainly cost you more on average.

Alaska is one of just nine states that do not have a state sales tax or an income tax. Instead, taxes are levied on items such as gasoline and cigarettes. Local governments may levy a sales tax if they so want. When all are added together, the average rate in the state is 1.76 percent. However, communities such as Fairbanks and Anchorage still have no sales tax. Juneau levies a 5% tax. That implies that the majority of the time you’re out shopping, all of your money goes into the cost of the products you’re purchasing. You will not have to deal with a sales tax markup.

5. Maryland

Maryland, a Mid-Atlantic state sandwiched between four separate states, makes up for its tiny size with a lot of character. With the Chesapeake Bay cutting a deep swath through the state’s core, its long coastline gives up some of the greatest seafood in the country. Maryland is a popular destination to reside on the East Coast due to its bustling cities, superb seafood, and pivotal role in early American history. However, like other East Coast states, Maryland has a high cost of living. Prices for everything, from housing to food, are skyrocketing in this city. So, is Maryland really worth it? Would you be able to afford to live in this beautiful state? Let’s take a look.

When it comes to affordable housing, Maryland is not the finest state. The cost of living in Maryland’s two largest metropolitan regions much surpasses the national average. The figures in one large metropolitan region, in particular, are excruciatingly high. And that is Baltimore. Housing expenses are more than twice the national average since it is part of the metro region that encompasses the nation’s capital city. If you’re seeking cheaper homes in Maryland, check out smaller towns and cities, such as St. Michaels.

Luckily, taxes are not very high. Maryland imposes a 6% statewide sales tax. County and city governments do not charge extra sales taxes. If you’re a freelancer and you earn a good amount working from home, Maryland is an excellent state. It’s one of the best states for working from home. If you’d like to move and work in Maryland, the best long distance movers in Maryland are at your service.

6. Oregon

We don’t think anyone has ever traveled across the Pacific Northwest without falling in love with its natural beauty. Oregon is the ideal destination for nature lovers to go out and explore, and the state offers it all. Volcanoes, deserts, and America’s deepest lake are all inside the state’s boundaries, but what’s it like to live in Oregon when you’re not exploring the great outdoors?

The average cost of living in Oregon is hefty, whether in a city or in a more rural setting. All that beauty obviously comes at a cost, and you’ll need to do some math to make sure it fits within your budget. Taking a look at the essential components of a typical cost of living will really help you get perspective on whether or not Oregon is the appropriate financial match for you. While there are many wonderful areas to live in Oregon, the total cost of living in Oregon for housing in most cities is much higher than the national average. Housing is in great demand, particularly in metropolitan areas where you can experience Oregon’s natural beauty with all of the city’s conveniences. If you manage to land a good deal in Oregon, don’t waste a second and schedule movers in Oregon right away.

On the other hand, Oregon has no sales tax, but its income taxes are higher than the national average. It is a progressive rate ranging from 4.75 percent to 9.90 percent, which means that the more you produce, the more you pay.

Final Notes

It’s critical to know how much you’ll need to make to maintain your current level of life before making the decision to move to a new location. Don’t skimp on your research. You should be able to make an educated decision on where you want to reside now that you’ve read this page. We encourage you to do your own research yourself. All of these places have their own pros and cons. Take all of that into consideration when forming your final decision. We hope that after reading up on the average cost of living by state, you will be able to choose the right fit for you.