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Research Report
Last updated: June 2026 — 4 data sources
The cost of living varies widely across the United States, from a low of 88 in Ohio to a high of 142 in California (US average = 100). This significant dispersion means that a salary that provides a comfortable lifestyle in one state may be insufficient in another.
Housing is the primary driver of cost differences between states. In the most affordable states, housing costs are 10-22% below the national average. Other categories (utilities, food, transportation, healthcare) also vary but typically within a narrower range.
Housing is typically the largest household expense, and it varies dramatically by state. In Ohio, the median home value is $200,000 with a housing cost index of 78, making it the most affordable for housing among ranked states. In contrast, California's median home value of $750,000 and housing index of 180 make it the least affordable.
Property tax rates also vary significantly. Illinois has the highest effective property tax rate at 2.07%, while Hawaii and Alabama have the lowest at approximately 0.30%. Our mortgage calculator can help estimate total monthly housing costs including principal, interest, taxes, and insurance.
The most affordable states generally have lower average salaries, creating a tradeoff for workers. For example, Ohio's average salary of $55,000 with a cost of living index of 88 provides an effective purchasing power equivalent to approximately $62,500 in an average-cost state. This means the real value of a salary in an affordable state can exceed that of a higher nominal salary in an expensive state.
Our salary vs. cost of living pages provide state-by-state analyses of these tradeoffs.
States are ranked by overall cost of living index (US average = 100) from the Bureau of Economic Analysis Regional Price Parities and the Council for Community and Economic Research Cost of Living Index. Category breakdowns include housing, utilities, food, transportation, and healthcare. Additional context includes median home values from Zillow and state income tax rates from state revenue departments.
Ohio has the lowest cost of living index at 88 among our ranked states. Housing costs at index 78 are the primary driver. Other affordable states include Texas (92), Illinois (92), Georgia (94), and Michigan (89).
Low-cost states offer greater purchasing power for your income, but often have fewer high-paying job opportunities and different lifestyle options. The best choice depends on your career, income, and preferences. Our salary vs. cost of living tool helps evaluate these tradeoffs.
United Kingdom calculators use data from the following official government agencies:
Our UK calculators use tax bands, National Insurance rates, and contribution limits published by HMRC. Salary and economic data comes from the Office for National Statistics (ONS). Mortgage calculations use average UK interest rates and may vary by lender and individual circumstances. All figures are for educational purposes.
All tax brackets, contribution rates, and economic data used in our calculators are sourced from the official government publications listed above. Rates are updated at least annually to reflect the latest tax year and regulatory changes. Users should verify critical figures with official sources or qualified professionals.
Last updated: June 2026. Information may change; always verify with official sources.
Last Updated: July 2026 — Reviewed Against Official Sources
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