Cost of Living in the U.S. in 2026: State Rankings

The cost of housing, groceries, transportation, and healthcare can vary significantly from state to state in the U.S. Hawaii, Massachusetts, and California topped the rankings, while Oklahoma had the lowest costs. Learn more about the cost of living in each U.S. state and the factors that most significantly impact your budget

Order a working guide and get clear instructions for legal employment abroad

ORDER GUIDE

The cost of the same basket of goods and services varies by more than double across different parts of the U.S.. According to data from the Missouri Economic Research and Information Center, based on the C2ER index for the first quarter of 2026, the highest figure was recorded in Hawaii—184.8—and the lowest in Oklahoma—83.5.

The study uses the national average—set at 100—as its baseline. This means that everyday expenses in Hawaii are 84.8% higher than the U.S. average, while in Oklahoma they are 16.5% lower. At the same time, the overall index does not reveal all the nuances: one state may offer affordable housing but have high costs for transportation, utilities, or healthcare. Let’s take a closer look at how much it costs to live in each state and which budget categories make the biggest difference.

Planning to work abroad, but getting lost among the requirements of different countries? Visit World’s “Work Guide” includes step-by-step instructions for obtaining a visa or work permit, a complete list of required documents, and practical advice – all in one PDF file sent to your email. Just select the destination country and your citizenship, and the necessary information will arrive in a few minutes. Don't spend weeks searching for disparate data - get a proven algorithm of actions right away.

Choose your direction and order the “Work Guide” today!

How is the cost of living in U.S. states calculated?

The cost-of-living index shows how much prices in a particular state differ from the national average. A value of 100 is taken as the baseline. An index of 120 means that a typical set of expenses costs about 20% more than the U.S. average, while an index of 90 indicates a difference of about 10% lower than the average.

The calculation takes into account six main categories:

- Food

- Housing

- Utilities

- Transportation

- Healthcare

- Other goods and services

Price data is collected in cities and large metropolitan areas that voluntarily participate in the C2ER study. For each state, an average is calculated based on data from the participating localities. Therefore, the index allows for a comparison of overall cost of living across states, but does not indicate the exact amount required for a specific individual or family.

Differences within a single state can also be significant. Renting an apartment in the downtown area of a major city is usually much more expensive than in the suburbs or a small town. Furthermore, the ranking does not take into account salary levels, tax burdens, or individual lifestyles. That is why the index should be used as a benchmark for comparison, rather than as a ready-made budget for moving.

H-1B Visa 2027: Registration Dates, New Selection Rules and Changes in US Fees at the link.

Map of the Cost of Living in the U.S. in 2026

The map shows a clear regional divide. Most states with a below-average cost of living are located in the Midwest and the South. The highest costs are concentrated on the West Coast, in the Northeast, in Alaska, and in Hawaii.

States with an index below 100 are marked in green; those with average or moderately high costs are marked in yellow; and the most expensive states are marked in orange and red. The map also shows that geographically adjacent areas can differ significantly: for example, California’s index is 140.5, while in neighboring Nevada it is 100.7.

Map of the cost of living in U.S. states. Source: Visual Capitalist based on the C2ER Cost of Living Index published by the Missouri Economic Research and Information Center.

Complete ranking of the cost of living in U.S. states

In 28 states, the cost-of-living index does not exceed the national average. Another 15 states have values ranging from 100 to 115, while in seven states and the District of Columbia, costs exceed the national level by more than 15%.

States with a below-average cost of living:

- Oklahoma – 83.5

- Alabama – 85.0

- Mississippi – 86.2

- Kansas – 87.6

- West Virginia – 87.9

- Indiana – 88.3

- Iowa – 88.6

- Missouri – 88.6

- Tennessee – 88.9

- Arkansas – 89.1

- New Mexico – 89.9

- Georgia – 90.6

- Texas – 90.7

- North Dakota – 90.7

- Louisiana – 91.1

- Nebraska – 91.3

- South Carolina – 91.9

- Kentucky – 92.5

- Minnesota – 93.4

- Wyoming – 93.7

- Ohio – 93.7

- Michigan – 93.9

- South Dakota – 94.1

- Illinois – 95.1

- Pennsylvania – 96.2

- North Carolina – 96.6

- Wisconsin – 97.4

- Virginia – 99.1

New US green card rules 2026 at the link.

States with average or moderately high cost of living:

- Utah – 100.6

- Florida – 100.7

- Nevada – 100.7

- Idaho – 101.7

- Delaware – 101.7

- Colorado – 101.8

- Montana – 105.9

- Arizona – 107.6

- Oregon – 109.6

- New Hampshire – 110.1

- Rhode Island – 111.2

- Vermont – 113.0

- Connecticut – 114.2

- Maine – 114.6

- Washington – 114.6

Vacancies, salaries and a step-by-step strategy for foreigners looking for work in the USA in 2026 here.

Most Expensive States and Territories:

- New Jersey – 118.8

- Maryland – 121.1

- New York – 124.7

- Alaska – 129.0

- District of Columbia – 134.3

- California – 140.5

- Massachusetts – 147.8

- Hawaii – 184.8

Only three states have an index above 140: California, Massachusetts, and Hawaii. At the same time, in the ten most affordable states, the index does not exceed 89.1. This disparity is primarily due to differences in housing costs, which vary by a factor of several times between different parts of the country.

The list of the highest-paid professions in the USA in 2026 is at the link.

The Most Affordable U.S. States to Live In

The lowest cost of living is found in the southern and central states. A common advantage among the top-ranked states is affordable housing: in each of the five most affordable states, the corresponding index does not exceed 77.5. At the same time, prices for groceries and utilities differ significantly less from the national average.

Oklahoma – 83.5. Overall costs here are 16.5% lower than the U.S. average. The biggest savings come from housing, with an index of 66.9. Transportation costs are also relatively low—83.7—while food has an index of 93.5. Healthcare costs about the same as the national average: the index stands at 98.1.

Alabama – 85.0. The cost of living in the state is about 15% lower than the national average. The housing index is only 67.7, and the healthcare index is 85.6. Transportation also remains affordable, with an index of 88.8. In contrast, utility costs are closer to the U.S. average—96.9.

Mississippi—86.2. The overall cost of living in the state is 13.8% lower than the national average. Housing has an index of 71.0, and healthcare—85.1. Groceries and utilities are also cheaper than average, though the difference is not as significant: their indices are 93.2 and 94.4, respectively.

Kansas – 87.6. The cost of living here is about 12.4% lower than the national average. Housing remains the main advantage, with an index of 77.5. Transportation and healthcare indices stand at 88.0 and 90.6, respectively, while prices for groceries and utilities are close to the national average.

West Virginia – 87.9. Overall costs are about 12.1% lower than the U.S. average, and the housing index stands at 71.3. Utilities have an index of 90.4. At the same time, transportation, with an index of 99.5, costs about the same as the national average, so the state’s advantage is largely due to affordable housing.

A low index does not mean that all costs in these states are equally affordable. Before moving, it’s worth comparing not only rent prices but also local wages, taxes, transportation infrastructure, and access to healthcare. In small towns, costs may be lower, but job opportunities and public transportation are often limited.

We previously reported that the U.S. State Department has suspended visa interview appointments.

The Most Expensive U.S. States to Live In

The top of the ranking is dominated by states with extremely expensive housing, complex logistics, or high costs across multiple categories. The gap between these and the most affordable regions is significant: the overall cost-of-living index in Hawaii is approximately 2.2 times higher than in Oklahoma.

Hawaii – 184.8. This is the undisputed leader of the ranking: living on the islands costs 84.8% more than the U.S. average. The housing index stands at 302.4, meaning housing costs are more than three times the national average. Utilities have an index of 183.5, transportation—149.0, and food—136.3. High prices are driven by limited land supply, reliance on imports, and the fact that a significant portion of goods is shipped by sea or air.

Massachusetts—147.8. The overall cost of living in the state is 47.8% higher than the national average. Housing poses the greatest burden, with an index of 217.5. This is the highest figure among the continental states. Utility and healthcare costs also significantly exceed the averages—143.9 and 131.8, respectively.

California – 140.5. The cost of living in the state is, on average, 40.5% higher than in the U.S. as a whole. The housing index stands at 189.5, transportation costs at 142.0, and utility costs at 134.6. However, there is a significant disparity within the state: the budget of a resident of San Francisco or Los Angeles can differ significantly from expenses in small towns in the Central Valley.

The District of Columbia – 134.3. Washington, D.C., is not a separate state, but is included in the ranking as a separate territory. The overall cost of living here is 34.3% higher than the average. The housing index reaches 190.4, while utilities, transportation, and groceries have significantly more moderate figures—107.8, 105.8, and 109.2, respectively.

Alaska – 129.0. In this state, high costs are spread across nearly all major categories. The utilities index is 148.4, housing 132.4, healthcare 130.7, groceries 126.6, and transportation 123.8. The remoteness of many communities and the challenges of delivering goods make everyday life more expensive even outside the largest cities.

Next on the list is New York, with an index of 124.7. Its overall index is lower than Alaska’s, but housing costs remain among the highest in the country—172.3. However, the state-wide average should not be equated solely with New York City: prices in other parts of the state can be significantly lower.

Learn more about the best U.S. cities for immigrants to live in by following the link.

Which expenses vary the most from state to state?

The overall index helps quickly compare states, but it doesn’t explain exactly what their residents spend more on. Housing accounts for the largest gap. Grocery prices vary more moderately, while expenses for utilities, transportation, and healthcare depend more heavily on location and local infrastructure.

Housing creates the largest price gap

The housing index ranges from 66.9 in Oklahoma to 302.4 in Hawaii. Thus, a typical set of housing costs on the islands is approximately 4.5 times more expensive. High figures are also recorded in Massachusetts (217.5), the District of Columbia (190.4), California (189.5), and New York (172.3).

At the other end of the spectrum are Alabama with an index of 67.7, Mississippi—71.0, and West Virginia—71.3. It is precisely the affordability of housing that allows these states to maintain a low overall index, even though prices in other categories are close to the national average.

Utilities and transportation vary by region

Idaho has the lowest utilities index at 73.4. Next are New Mexico at 80.0, Nevada at 81.3, and Louisiana at 82.3. In Hawaii, the corresponding index reaches 183.5, in Alaska—148.4, and in Massachusetts—143.9.

Transportation is cheapest in Oklahoma, where the index stands at 83.7. The highest costs are in Hawaii—149.0, California—142.0, and Washington—131.2. When choosing a place to live, it’s important to check not only gas prices but also the availability of public transportation. In many small towns, a car remains a necessity, which increases a household’s actual budget.

Groceries and healthcare also affect the budget

The difference in grocery prices is smaller than in the housing sector. Mississippi has the lowest index—93.2—while Hawaii has the highest—136.3. Groceries also remain expensive in Alaska, where the index stands at 126.6. In most continental states, it is close to the national average.

The lowest healthcare cost index is recorded in Mississippi—85.1—and the highest in Massachusetts—131.8. Alaska has a nearly identical figure—130.7. At the same time, the index reflects the price level of medical goods and services but does not account for insurance premiums, deductibles, or out-of-pocket expenses.

In our previous article, we provided detailed information about working in the U.S. in 2026: what visas and documents are required, and how much legal employment costs.

How can you estimate your budget before moving to another state?

A low cost-of-living index doesn’t always mean that moving there will be financially beneficial. A state with affordable housing may have lower salaries, limited public transportation, or higher costs associated with owning a car. In expensive regions, incomes are often higher, but rent, insurance, and taxes can eat up a significant portion of that difference.

For a rough comparison, you can use a simple formula: multiply your current expenses by the cost-of-living index of the new state and divide by the cost-of-living index of your current location. For example, if your monthly budget in a state with an index of 90 is $3,000, you’ll need about $4,000 to maintain a similar standard of living in a region with an index of 120. This is a rough estimate, as everyone’s spending patterns differ.

Before making a decision, it’s worth checking the following separately:

- The average salary for your profession and your take-home pay

- Rent in a specific city and neighborhood

- The amount of security deposits, fees, and other upfront costs

- The cost of health insurance and expenses it doesn’t cover

- Whether you’ll need to buy and maintain a car

- Costs of daycare, schools, or education

- Local income, sales, and property taxes

You should pay particular attention when comparing large cities with state averages. The New York index covers more than just the metropolis of the same name, and the California index does not reflect the same conditions for San Francisco, Los Angeles, and smaller cities. It’s better to base your actual budget on prices in a specific metropolitan area.

You’ll also need a financial cushion for the move. Before you receive your first paycheck, you may face expenses such as temporary housing, a security deposit, moving costs, paperwork, insurance, and setting up your new home. Therefore, use the ranking to narrow down your choices of states, and make your final decision after comparing your income and all your regular expenses.

Visit World’s “Work Guide” will help you figure out which visa category is right for your situation – H-1B, H-2B or other – and what documents you need to prepare at each stage: from the visa application to registering with local authorities upon arrival. The guide also includes information on visa fees, approximate application processing times and life hacks that will help you avoid typical refusals. All you need to do is enter your citizenship and select the USA as your destination country, and the full guide will come to your email in PDF format.

Prepare for the move wisely – order the “Work Guide” for the USA now.

We remind you! The technical talent market in 2026 is one of the most competitive in history. We have already told you which countries offer IT specialists the most favorable conditions in terms of salary, taxes, visa programs and quality of life.

Products from Visit World for a comfortable trip:

We monitor the accuracy and relevance of our information, so if you notice any errors or inconsistencies, please contact our hotline.