Cost of Living by US State in 2026: Prices, Rent, Homes and Power

What is the cost of living by state in 2026?

The cost of living by state runs from 86.9 in Arkansas to 110.7 in California on the Regional Price Parities that the US Bureau of Economic Analysis publishes for 2024, where the US average equals 100, the latest state-level reading in our data and a useful single starting point for comparing states.

This article is general information, not tax or financial advice. Below you will find that measure for every state and the District of Columbia, alongside rent, home values, property tax, electricity and income, each dated and sourced in the table captions. The aim is to help you compare, using federal data rather than opinion, and no single column should decide a move on its own. Each state links to its own USA relocation page, and our methodology page explains how the figures are collected.

What are Regional Price Parities, and how do they measure cost of living?

Regional Price Parities measure how the overall price level in a state compares with the national average, set at 100, so that a reading of 110.7 in California shows prices above the US average in the Bureau of Economic Analysis 2024 data and a reading of 86.9 in Arkansas shows prices below it.

Two parts of the measure are worth separating. The all-items figure covers the whole basket of what people buy. The housing figure isolates what people pay for shelter, and it moves over a much wider range than the all-items figure. Illinois and Nevada both sit at exactly 100 on all items in 2024, yet their housing readings are 93.9 and 114.1, which tells you the same overall price level can rest on a different mix of costs.

The measure has limits you should keep in mind. A state reading is an average across cities, suburbs and rural areas, so it can say little about the particular neighbourhood you have in mind. It also describes prices rather than your own spending pattern. A household that owns its home outright, or that spends heavily on private schooling, can feel quite different costs from the average basket.

Cost of living by US state: the full table

Rent, home value, taxes paid on real estate and household income come from the US Census Bureau American Community Survey 2025 1-year estimates. Electricity is the US Energy Information Administration average residential price, year to date through August 2026. Effective property tax is median real estate taxes paid divided by median home value, for owner-occupied units in the same 2025 survey.

Which states show the highest cost of living on this measure?

California shows the highest cost of living on this measure at 110.7 in the 2024 Regional Price Parities, followed by Hawaii at 110, the District of Columbia at 109.9, New Jersey at 108.8, New York at 107.9 and Washington at 107, all above the US average of 100.

A high reading describes prices and nothing more. These are also places with large labour markets, universities, international airports and established international communities, which is often why families look at them in the first place. You can read each one in detail on the pages for California, Hawaii, New Jersey, New York and Washington.

Which states show the lowest cost of living on this measure?

Arkansas shows the lowest cost of living on this measure at 86.9 in the 2024 Regional Price Parities, followed by Mississippi at 87, Iowa and Oklahoma at 87.8, Louisiana at 88.2, South Dakota at 88.6 and Alabama at 88.8, all below the US average of 100.

The lower price level usually comes with lower incomes in the same data. Mississippi's median household income of USD 59,346 and Arkansas's USD 65,588 in the 2025 survey sit well below those of the states in the previous section. If your income comes from a business or investments rather than a local employer, that link may matter less to you, and the price level may carry more weight. If you intend to work locally, you would want to compare the two together.

How much does housing change the cost of living by state?

Housing changes the cost of living by state far more than any other column here, with the 2024 housing price level running from 54.2 in West Virginia to 155 in the District of Columbia and 154.3 in California, against a much narrower all-items range, with the US average at 100 on both measures.

The same pattern shows in actual housing costs in the 2025 survey. Median gross rent runs from USD 921 a month in West Virginia to USD 2,160 in California, with the District of Columbia at USD 2,075 and Hawaii at USD 2,009. Median home value runs from USD 176,300 in West Virginia to USD 901,500 in Hawaii, with California at USD 770,700 and the District of Columbia at USD 715,500.

Some states look different on rent than on purchase. Hawaii has the highest median home value in the table, while its median rent sits below California's. Montana's median home value of USD 427,500 sits well above what its USD 1,208 median rent might suggest, and Utah shows a similar shape with USD 543,400 and USD 1,646. If you plan to rent for your first year and buy later, check both columns.

Where do high incomes and high cost of living coexist?

High incomes and high cost of living coexist most clearly in the District of Columbia, with a median household income of USD 109,505 in 2025 and a 109.9 price level in 2024, and in New Jersey, at USD 107,797 and 108.8, with Maryland, Massachusetts, Hawaii, California and Washington showing the same pairing.

Maryland shows USD 107,700 against 105, Massachusetts USD 106,539 against 105.8, New Hampshire USD 106,759 against 104.2, Hawaii USD 105,013 against 110, California USD 102,159 against 110.7 and Washington USD 101,946 against 107. Higher local pay and higher local prices often arrive together, so a salary offer should be read against both.

The pairing does not hold everywhere. New York shows a 107.9 price level with a median household income of USD 89,210. Utah shows USD 99,311 against a price level of 98.9, and Minnesota USD 92,297 against 98.6. These comparisons do not tell you what you would earn, and a median describes a typical household rather than an investor family. They do show why looking at prices alone gives you half of the picture.

How does property tax change the cost of living by state for owners?

Property tax changes the cost of living by state for owners because the effective rate in the 2025 survey data runs from 0.26% in Hawaii to 1.92% in Illinois and 1.82% in New Jersey, while median real estate taxes paid run from USD 904 a year in West Virginia to USD 9,648 in New Jersey.

A low effective rate on a high home value and a higher rate on a modest one can land close together. Hawaii's 0.26% on a median home of USD 901,500 comes with median taxes of USD 2,387, while Iowa's 1.27% on USD 237,000 comes with USD 3,014. Rate and amount both matter, and the amount reflects the homes people actually own in that state, not the home you may choose to buy. Effective rates are also state-wide figures, and local assessments can differ considerably.

Property tax also interacts with income tax. Texas shows an effective rate of 1.32% and Florida 0.8%, and neither charges income tax on wages. If you want to see that trade-off set out, our articles on states with no income tax and moving from California to Texas go through it, and the California to Texas comparison places the two states side by side. For the income tax itself, state income tax by income level gives computed figures.

How much does electricity cost by state in the cost of living data?

Electricity in the cost of living data runs from 12.46 cents per kWh in North Dakota to 46.41 cents in Hawaii, on the average residential price for the year to date through August 2026 from the US Energy Information Administration, with California at 32.58 cents, Maine at 30.23 and Massachusetts at 30.19.

At the lower end, Nebraska is at 12.92 cents, Idaho at 13.02 and Utah at 13.19. The price per unit is only half of a household bill, because climate and home size decide how many units you use. A large home in a hot or a cold climate can use far more than a small one in a mild climate, so the rate alone will not give you the annual cost.

Whether you are ready to compare specific states or still narrowing down the list, Mirabello can help you connect these figures with the immigration route and the family plans behind them. A free consultation is an easy first step, with no obligation.

What do health cover, childcare and schools add to the cost of living by state?

Family items add a further layer to the cost of living by state: the 2026 average Marketplace premium before tax credits runs from USD 509 a month in Idaho to USD 1,314 in West Virginia, and estimated infant centre childcare for 2023 runs from USD 4,862 a year in Mississippi to USD 23,191 in Massachusetts.

The premium figure is the average monthly premium before tax credits in the Centers for Medicare & Medicaid Services 2026 Marketplace Open Enrollment file. Childcare comes from the US Department of Labor National Database of Childcare Prices, whose 2023 values are estimates, and where the state figure is missing from our data the table says "Not published". School spending per pupil comes from the National Center for Education Statistics for 2020-21. It runs from USD 9,014 in Utah to USD 26,097 in New York and measures what public systems spend, not what a family pays, or the quality of any school.

How to use these figures before you choose a state

Start with the two or three states your work, family or business already points to, then read across the rows for those states. Separate the costs you can change, such as the size of your home, from the ones you cannot, such as the state's price level. Then add the tax picture, because state income tax, sales tax and property tax can shift the comparison in either direction. For anyone planning a long stay, our guides to state tax residency rules and state estate and inheritance taxes cover the less visible items, and where to live on a green card or E-2 brings the figures together for incoming investor families.

If you are moving between states, the New York to Florida comparison shows how this works for one common corridor. If you are moving from abroad, the USA immigration overview sets out the routes, US taxes after moving from Germany, Switzerland or Austria covers the federal side for those readers, and our residency by investment comparison covers routes in other countries, should you be weighing the USA against somewhere else.