Home Home insurance Cost of living comparison by state Cost of living comparison by state Based on Insure.com’s cost-of-living assessment, Hawaii is the most expensive state in which to live, while Oklahoma is the least expensive. View Carriers Please enter valid zip Compare top carriers in your area Written by Chris Kissell Chris Kissell Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more. Reviewed by Nupur Gambhir Nupur Gambhir Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service. Updated on: August 13, 2024 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. How much you spend on major expenses such as housing, groceries and insurance all impact your cost of living – and prices for goods and services can vary widely by location. That means a state’s cost of living can make the difference between being financially comfortable or living paycheck to paycheck. To compare the cost of living in different states, Insure.com ranked each of the 50 states and Washington, D.C. using data from the Center for Regional Competitiveness, a management organization that oversees the Council for Community and Economic Research. The data track regional differences in the cost of consumer goods and services, allowing Insure.com to evaluate factors such as: Housing Groceries Transportation Utilities The cost of home and auto insurance Health care Our base cost of living is represented by a reading of 100. In this case, 100 represents the national average. Locations are then indexed against this number. For example, a state with a cost of living of 110 would be 10% higher than the national average. Based on our cost-of-living assessment, Hawaii is the most expensive state at 181.85 while Oklahoma is the least expensive at 88.76. If you are considering moving or simply want to know how your state stacks up, read on for more information about the cost of living by state. What is cost of living? Cost of living refers to the amount of money you need to cover basic living expenses in a certain location. That can include the average cost of: Rent/mortgage payments Utilities Food and groceries Health care Home and auto insurance Transportation Other goods and services Cost of living can tell you how expensive it is to live in one area versus another. Click to zoom in ❮ ❯ × ❮ ❯ Average cost of living by state Hawaii has a cost-of-living index of 181.85, making it 82% more expensive than the national average. Here is the cost of living index for all 50 states in the U.S. plus Washington, D.C. State Average cost of living index Percent difference from national average Alabama89.85-10.15Alaska123.0823.08Arizona105.915.91Arkansas90.18-9.82California141.341.3Colorado106.446.44Connecticut109.679.67Delaware100.980.98Florida109.359.35Georgia92.93-7.07Hawaii181.8581.85Idaho97.38-2.62Illinois93.06-6.94Indiana90.92-9.08Iowa89.06-10.94Kansas90.79-9.21Kentucky94.25-5.75Louisiana97.53-2.47Maine108.838.83Maryland100.250.25Massachusetts126.1326.13Michigan98.05-1.95Minnesota93.48-6.52Mississippi89.63-10.37Missouri90.67-9.33Montana101.971.97Nebraska95.21-4.79Nevada101.541.54New Hampshire110.4610.46New Jersey111.0411.04New Mexico93.2-6.8New York133.3433.34North Carolina96.62-3.38North Dakota92.49-7.51Ohio93.02-6.98Oklahoma88.76-11.24Oregon114.514.5Pennsylvania98.06-1.94Rhode Island112.5212.52South Carolina94.42-5.58South Dakota93.14-6.86Tennessee92.62-7.38Texas93.8-6.2Utah102.92.9Vermont112.3912.39Virginia102.852.85Washington118.0718.07Washington, D.C.143.1343.13West Virginia88.89-11.11Wisconsin96.85-3.15Wyoming92.44-7.56 Oklahoma ranks lowest, with an index value of 88.76. That is a 11% savings over the national average. States such as California and Hawaii have much higher costs of living than places like Iowa and Oklahoma. The cost of living varies within each state, too. Rural areas usually have a lower cost of living than suburban and urban areas. Even one metro area within a state can have a very different cost of living than another metro in the same state. For example, Houston, Dallas, El Paso, San Antonio, Austin, Amarillo, and Beaumont are all proudly Texan. However, the cost of living in each varies. The more congested Northeast isn’t immune to the substantial cost of living variations, either. New York has the New York City area, Long Island and Westchester County, which all have high costs. However, the Empire State also includes more affordable areas such as Albany, Rochester, Utica and Buffalo. So, don’t write off an entire state if it has a high cost of living overall. Instead, dig deeper into the numbers to gauge specific regional costs. Cost of living comparison calculator Whether you’re moving to start a job or relocating in retirement, Insure.com’s cost of living calculator can help you evaluate how much it will cost you to live in your new destination. For instance, compare costs related to major budget categories such as: Housing Groceries Utilities Health care Other goods and services Home and auto insurance You can also compare any two factors side-by-side. Our cost of living calculator provides information about the salary you’ll need to maintain your current standard of living. Knowing what you’ll need to earn to maintain your lifestyle gives you critical information that can help you decide whether moving to that area is worth it. Calculate cost of living by state Moving From Please enter valid state Moving To Please enter valid state Current income after-tax $ Please enter salary Value must be less than 10 digit Re-Calculate New York Idaho $36,500 Cost of living in Idaho, after-tax Cost of Living 27% lower in Idaho, than New York Auto Insurance 33% lower in Idaho, than New York Home Insurance 2% higher in Idaho, than New York Compare cost of living: New York, vs Idaho <------- Cost in Idaho -------> Housing -51% Groceries -4% Utilities -24% Transportation -6% Healthcare -13% Misc. Goods & Services -8% Auto Insurance -33% Home Insurance 2% Auto Insurance New York: $3,270 Idaho: $2,204 % Change: 33% lower Find Insurance Cost in Idaho Home Insurance New York: $1,649 Idaho: $1,686 % Change: 2% higher Find Insurance Cost in Idaho Get this report NOW! GO Email sent successfully. Unable to send the Email. OR L O A D I N G How to use cost of living comparison calculator The cost of living index lets you compare one area’s costs with another. Enter where you live and the information about another community. Provide your income and calculate the cost of living. Our tool shows what you’ll need to earn to maintain the same standard of living. The tool also highlights the cost differences for each category: housing, groceries, utilities, transportation, health care, auto insurance, and home insurance. The cost of living tool additionally includes how much you’d save on home and auto insurance. Enter your information below and compare the cost of living between two places. Cheapest states to live in According to our data, the Midwest and South are the parts of the U.S. with the lowest cost of living. Here are the 10 states with the lowest cost of living and how they compare to the national average: StateAverage cost of living indexPercent difference from national averageOklahoma88.76-11.24West Virginia88.89-11.11Iowa89.06-10.94Mississippi89.63-10.37Alabama89.85-10.15Arkansas90.18-9.82Missouri90.67-9.33Kansas90.79-9.21Indiana90.92-9.08Wyoming92.44-7.56 Most expensive states to live in As far as the most expensive states to live in, they tend to fall along the two coasts. Here are the 10 most expensive states to live in and how their cost of living compares to the national average: StateAverage cost of living indexPercent difference from national averageHawaii181.8581.85Washington, D.C.143.1343.13California141.341.3New York133.3433.34Massachusetts126.1326.13Alaska123.0823.08Washington118.0718.07Oregon114.514.5Rhode Island112.5212.52Vermont112.3912.39 Why cost of living matters A state’s cost of living significantly impacts your ability to save money and build wealth. If you live in an area with a high cost of living and don’t have a strong income to support it, you could end up living paycheck to paycheck. On the other hand, a lower cost of living means expenses are relatively low. So, you might have more room in your budget to save, invest or spend on items you need – or want. However, keep in mind that wages often mirror the cost of living. If you live in an expensive area such as San Francisco or Washington, D.C., your salary will likely be higher to account for that fact. Your expenses and salary will likely be lower if you live in places like Kalamazoo, Michigan, or Charleston, West Virginia. What is a cost of living adjustment (COLA)? An annual In order to ensure that retiree incomes keep up with inflation, an annual cost of living adjustment (COLA) is typically applied to both Social Security and Supplemental Security Income (SSI) benefits to ensure that retiree incomes keep up with inflation. The first COLA occurred in 1975. The adjustment is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is calculated by the U.S. Bureau of Labor Statistics. Social Security and SSI benefits have increased by 3.2% in 2024. How to use the cost of living comparison calculator To use the cost of living comparison tool, take the ZIP code of where you now live and the ZIP code of the place you are considering moving and type those numbers into the tool. Also, type in your current income. Then, hit the “Re-Calculate” button. The calculator will instantly compare the two locations based on: Cost of living Auto insurance cost Home insurance cost You will also get comparisons for other expenses, such as housing, groceries, utilities, transportation, health care, and miscellaneous goods and services. Methodology A cost of living index evaluates several factors, which are weighted in terms of importance. Below are the eight main expense categories we used to gauge the cost of living, from most to least important: Miscellaneous goods and services (29%) Housing (28%) Groceries (16%) Transportation (9%) Utilities (9%) Health care (5%) Auto insurance (2%) Home insurance (2%) We then ranked the states by those results. The base cost of living is always represented by 100; in this case, 100 represents the national average. Locations are then indexed against this number. For example, a state with a 110 on the cost of living index would be 10% higher than the national average. Frequently asked questions What is the cheapest state to live in? Oklahoma is the cheapest state in terms of cost of living. However, Oklahoma has high home insurance costs. Home insurers base rates on risk. Weather-related claims — such as tornados, hailstorms and windstorms — can severely damage homes, which leads to higher costs. What is the best state to live in financially? Just because it’s cheap to live in a certain state doesn’t necessarily mean it’s the best place to live for your finances. You’ll also want to consider factors like the unemployment rate, average wages, tax rates, and more. That means states with more expensive costs of living could still be financially comfortable if there’s a strong job market, high salaries, low taxes, etc. And these factors can shift over time, meaning the best state to live in financially isn’t always the same. If you’re thinking about moving for financial reasons, you can use the cost of living calculator to see how different states will impact your bottom line. Then do some research to find out the health of the local economy. How much has the cost of living increased? Over the past couple of years, the cost of living has been increasing at its fastest pace in decades. As of June 2024, the Consumer Price Index increased 3.3% from a year ago, according to the Bureau of Labor Statistics. This is the most recent update to the Consumer Price Index. Which state has the best income-to-cost-of-living ratio? If you are looking for the best income-to-cost-of-living ratio, head to Oklahoma. The ratio in Oklahoma is 88.76. What is the easiest state to live in financially? In general, states with the lowest cost of living are likely to be the easiest ones to live in from a money perspective. That means Mississippi, Iowa and Oklahoma are especially likely to be easy on your wallet. However, there might be situations where living in a more expensive state is actually easier financially. Perhaps moving to expensive states such as Hawaii, California, or New York provides you with job opportunities that allow you to earn far in excess of what you could make a living in a more affordable state. Under those circumstances, you might find it financially easier to live in California than in Mississippi. Chris KissellContributing Researcher . .Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more. In case you missed it What is HO-6 condo insurance and how much does it cost? Average homeowners insurance cost by ZIP code in 2024 What is dwelling coverage and how much do you need? Personal liability insurance: What it is and why you need it Renters insurance quotes: Compare rates Hurricanes and home insurance: How hurricane insurance works How replacement cost coverage works when you file a claim How much do claims increase home insurance rates? Mobile home insurance cost and coverage in 2024 Homeowners insurance basics Home Insurance Advisor Cheapest homeowners insurance in 2024 How much flood insurance do I need? 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