7 U.S. States with the Lowest Cost of Living
Most up-to-date rankings
Hello friends!
If you're looking to make your money go further, certain U.S. states offer a significantly lower cost of living. Based on the latest data from the Missouri Economic Research and Information Center (MERIC), here are the 7 U.S. states with the lowest cost of living, ranked from least affordable (7) to most affordable (1).
7. Arkansas
Cost of Living Index: 89.0 (11% below the national average)
Median Household Income: $52,528
State Income Tax: 2% to 4.9%, depending on income
Sales Tax: 6.5%, with localities adding up to 5% (total: up to 11.5%)
Why It’s Affordable: Arkansas boasts low housing and grocery costs, making it an ideal location for retirees and those on a budget.
6. Missouri
Cost of Living Index: 89.0 (11% below the national average)
Median Household Income: $61,043
State Income Tax: 0% to 5.4%, depending on income
Sales Tax: 4.225%, with localities adding up to 5.763% (total: up to 9.988%)
Why It’s Affordable: Missouri offers low housing and utility costs, making it an excellent choice for families looking to save on monthly expenses.
5. Alabama
Cost of Living Index: 88.8 (11.2% below the national average)
Median Household Income: $54,393
State Income Tax: 2% to 5%, depending on income
Sales Tax: 4%, with localities adding up to 7.5% (total: up to 11.5%)
Why It’s Affordable: Alabama combines affordable housing with low property taxes, making it a cost-effective choice for many.
4. Oklahoma
Cost of Living Index: 87.9 (12.1% below the national average)
Median Household Income: $60,096
State Income Tax: 0.5% to 5%, depending on income
Sales Tax: 4.5%, with localities adding up to 5.5% (total: up to 10%)
Why It’s Affordable: Oklahoma offers affordable housing and utilities. The state's oil and gas industry also provides numerous job opportunities.
3. Mississippi
Cost of Living Index: 87.5 (12.5% below the national average)
Median Household Income: $49,111
State Income Tax: 0% to 5%, depending on income
Sales Tax: 7%, with no local additions
Why It’s Affordable: Mississippi takes the top spot due to its low housing costs and minimal utility expenses. While the median income is lower, the overall affordability makes it manageable for many.
2. Kansas
Cost of Living Index: 86.7 (13.3% below the national average)
Median Household Income: $64,521
State Income Tax: 3.1% to 5.7%, depending on income
Sales Tax: 6.5%, with localities adding up to 4% (total: up to 10.5%)
Why It’s Affordable: Kansas offers low housing costs and a stable economy, making it an attractive option for families and individuals alike.
1. West Virginia
Cost of Living Index: 84.8 (15.2% below the national average)
Median Household Income: $48,850
State Income Tax: 3% to 6.5%, depending on income
Sales Tax: 6%, with localities adding up to 1% (total: up to 7%)
Why It’s Affordable: West Virginia's low housing costs and affordable healthcare contribute to its status as the state with the lowest cost of living.
Finally…
Choosing the right state depends on your lifestyle and priorities. Whether it’s low taxes, affordable housing, or job opportunities, these states provide a great starting point. For the latest cost of living data, visit the Missouri Economic Research and Information Center (MERIC).
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