The simplest way to compare the cost of living across US states is the Regional Price Parity (RPP) published by the Bureau of Economic Analysis. It’s an all-items index — housing, goods, services and rents combined — pinned so the US average equals 100. A state at 110 is about 10% more expensive than the country as a whole; a state at 90 is about 10% cheaper.
Estimate — verify with the BEA. RPP figures are statewide averages and update about once a year. A specific city can be far above or below its state’s number.
The most expensive states
| Rank | State | RPP (US = 100) | vs US average |
|---|---|---|---|
| 1 | District of Columbia | 112.8 | +12.8% |
| 2 | California | 112.5 | +12.5% |
| 3 | Hawaii | 110.8 | +10.8% |
| 4 | Washington | 109.8 | +9.8% |
| 5 | Massachusetts | 109.4 | +9.4% |
| 6 | New Jersey | 108.8 | +8.8% |
These are overwhelmingly coastal, urban states where land is scarce and demand is high. See the full most expensive states ranking.
The least expensive states
| Rank | State | RPP (US = 100) | vs US average |
|---|---|---|---|
| 1 | Arkansas | 86.6 | -13.4% |
| 2 | Mississippi | 87.3 | -12.7% |
| 3 | Alabama | 87.8 | -12.2% |
| 4 | South Dakota | 88.0 | -12.0% |
| 5 | Iowa | 88.4 | -11.6% |
The cheapest states cluster in the South and Midwest. See the full cheapest states ranking.
What actually drives the gap
Goods — groceries, electronics, clothing — cost roughly the same nationwide because they move through national supply chains. Housing is the variable that splits states apart. That’s why every expensive state is also a high-rent state, and why our salary calculator leans on the all-items RPP: it already bakes in the housing difference.
How to use these numbers
A high price level isn’t automatically a bad deal — many expensive states also pay higher salaries. To see whether higher wages cover higher prices, convert your pay between states with the cost-of-living calculator, or compare two states directly, like California vs Texas.
Sources
Price levels are from the BEA Regional Price Parities (all items, US = 100). Figures are current as of June 2026 and are estimates — confirm with the BEA before relying on them. See our methodology.