Cost of Living by State: Which States Are Most (and Least) Expensive in 2025?
Compare U.S. cost of living with BEA Regional Price Parities (RPP)—Top 10 most and least expensive states, salary purchasing-power examples, and every state cost hub on US5.
Cost of Living by State: Which States Are Most (and Least) Expensive in 2025?
Quick Answer: Regional Price Parity (RPP) from the Bureau of Economic Analysis compares price levels across states. 100 is roughly the U.S. average. On US5’s latest load (2024 RPP), California (~110.7) is among the most expensive, while Arkansas (~86.9) and Mississippi (~87.0) sit near the bottom—about a 24-point gap in overall price level.
Open the tools: Cost home · California cost · Texas cost · Take-home pay
If you’re comparing job offers or a move, sticker salary is only half the story. RPP tells you whether those dollars stretch—or shrink—once rent, goods, and services enter the picture.
What Is RPP (In Plain English)?
Think of RPP as a price index for places, not a single grocery receipt:
- 100 ≈ national average price level
- 110 ≈ prices about 10% higher than average
- 90 ≈ about 10% lower
US5 shows state RPP on each state cost hub so you can compare housing-heavy coasts with lower-cost regions before you trust a headline salary.
RPP is not the same as:
- Your personal rent quote for one apartment
- A city-only cost-of-living score (cities still drive many state averages)
- After-tax take-home pay — use take-home pay for withholdings
Top 10 Most Expensive States (RPP 2024)
Higher index = higher overall price level.
| Rank | State | RPP (US=100) | Cost hub |
|---|---|---|---|
| 1 | California | 110.72 | /state/california/cost |
| 2 | Hawaii | 109.95 | /state/hawaii/cost |
| 3 | District of Columbia | 109.90 | /state/district-of-columbia/cost |
| 4 | New Jersey | 108.81 | /state/new-jersey/cost |
| 5 | New York | 107.92 | /state/new-york/cost |
| 6 | Washington | 107.01 | /state/washington/cost |
| 7 | Massachusetts | 105.76 | /state/massachusetts/cost |
| 8 | Maryland | 104.96 | /state/maryland/cost |
| 9 | New Hampshire | 104.17 | /state/new-hampshire/cost |
| 10 | Connecticut | 103.61 | /state/connecticut/cost |
These markets often pair high prices with high wages—see highest-paying jobs by state and hubs like California salaries or Washington salaries.
Top 10 Least Expensive States (RPP 2024)
| Rank | State | RPP (US=100) | Cost hub |
|---|---|---|---|
| 1 | Arkansas | 86.94 | /state/arkansas/cost |
| 2 | Mississippi | 86.95 | /state/mississippi/cost |
| 3 | Iowa | 87.76 | /state/iowa/cost |
| 4 | Oklahoma | 87.84 | /state/oklahoma/cost |
| 5 | Louisiana | 88.21 | /state/louisiana/cost |
| 6 | South Dakota | 88.59 | /state/south-dakota/cost |
| 7 | Alabama | 88.82 | /state/alabama/cost |
| 8 | North Dakota | 88.96 | /state/north-dakota/cost |
| 9 | West Virginia | 89.50 | /state/west-virginia/cost |
| 10 | Kansas | 90.07 | /state/kansas/cost |
Lower prices help—but only if local wages and career options fit your field. Cross-check Arkansas salaries or Ohio salaries (Ohio RPP ~92.77) against coastal offers.
Same Salary, Different Buying Power
Start with $100,000 gross and US5’s take-home estimates, then adjust for RPP (rough “national-equivalent” dollars ≈ take-home ÷ (RPP/100)):
| State | Est. take-home on $100k | RPP | Rough buying-power index |
|---|---|---|---|
| California | ~$73,071 | 110.72 | ~$66,000 |
| New York | ~$73,557 | 107.92 | ~$68,200 |
| Texas | ~$78,509 | 97.06 | ~$80,900 |
| Ohio | ~$76,475 | 92.77 | ~$82,500 |
| Florida | ~$78,509 | 103.41 | ~$75,900 |
| Washington | ~$78,509 | 107.01 | ~$73,400 |
Texas and Florida show the same modeled take-home (no state income tax), but Florida’s higher RPP leaves less real purchasing power than Texas in this simplified view.
| Location | Salary hub | Cost hub |
|---|---|---|
| California | CA salary | CA cost |
| Texas | TX salary | TX cost |
| Ohio | OH salary | OH cost |
| Florida | FL salary | FL cost |
| Washington | WA salary | WA cost |
| New York | NY salary | NY cost |
Re-run any gross on the take-home pay calculator. For project costs (roof, HVAC), see home improvement costs.
How to Use Cost Pages With Salary Pages
- Note the OEWS median for your role (example: RN · California vs RN · Texas).
- Estimate net pay on take-home.
- Open the state cost hub for RPP and local project estimates.
- If you’re remodeling after a move, open factor pages like roof replacement or HVAC / AC.
Browse Every State’s Cost Hub
FAQ
Is RPP the same as “cost of living” on ZIP pages?
Not exactly. Many ZIP pages compare income, home value, and rent with U.S. averages. RPP is a BEA price-level index for states (and related geographies). Use both: ZIP for local place context, state RPP for interstate moves.
Why isn’t the cheapest state always the best place to live?
Low prices can come with thinner job markets for your occupation, different climate risks, or fewer specialty employers. Always pair cost hubs with salary hubs.
How often does RPP update?
BEA revises Regional Price Parities on its own release schedule. US5 shows the latest year loaded on each cost hub (currently 2024 in this guide’s figures).
Related Reading
Next Steps
RPP and cost estimates are for comparison and education. Local rents, insurance, and taxes vary by city and ZIP. Confirm with BEA releases and local quotes before relocating or budgeting.