A salary of $85,000 sounds solid until you try to rent a one-bedroom apartment forty minutes outside Honolulu. In Hawaii, that same paycheck buys groceries running roughly a third above the national average, and a typical home costs about three times what it does across most of the country. Move that salary to Iowa and it suddenly feels like real money.
Every quarter, researchers survey prices for groceries, housing, utilities, health care, transportation and everyday goods in cities across the country and roll them into a composite cost of living index for each state, with 100 set as the national average. A state sitting at 120 costs 20% more than average to live in. A state at 85 costs 15% less.
This list covers the fifteen most expensive states based on the most current available data, covering the first quarter of 2026. Washington DC would rank near the top too, with an index of 134.3, but it isn't a state, so it's left off this particular list.
Housing drives most of the gap. In state after state below, the housing index runs far higher than the overall cost of living score, sometimes by more than a hundred points.
Table of contents
- 15. Arizona has the mildest cost gap of the fifteen
- 14. Oregon spreads its costs more evenly than most
- 13. New Hampshire's low taxes don't mean low costs
- 12. Rhode Island's small size drives up utility costs
- 11. Vermont's zoning rules keep housing supply tight
- 10. Connecticut costs reflect its spot next to New York City
- 9. Washington's transportation costs outpace its housing costs
- 8. Maine's housing and heating costs both run high
- 7. New Jersey sits between two expensive cities
- 6. Maryland's costs track its neighbor, Washington DC
- 5. New York's statewide number hides a huge local gap
- 4. Alaska costs more everywhere, not just in one category
- 3. California's housing costs are nearly double the national average
- 2. Massachusetts has the second highest housing costs in the country
- 1. Hawaii is the most expensive state in the country
15. Arizona has the mildest cost gap of the fifteen
Arizona checks in at the bottom of this list with a cost of living index of 107.6, about 8% above the national average. Housing is the reason. The state's housing index sits at 119, nearly 19% above average, while groceries actually come in just under the national baseline.
That gap between housing and everything else tells the real story. Phoenix, Scottsdale and Tucson have all absorbed years of population growth, and new construction hasn't kept pace with demand. Utilities and transportation run only modestly above average, so a household that owns its home outright or moved to Arizona years ago won't feel the same squeeze as someone buying or renting today.
Health care costs in Arizona sit almost exactly at the national average, which is unusual for a state this far up the list. Most of the states ranked above it see elevated costs across nearly every category, not just one.
Arizona's index of 107.6 ranks 37th out of the fifty states, Washington DC and Puerto Rico, the least expensive position of any state on this list.
14. Oregon spreads its costs more evenly than most
Oregon's overall index of 109.6 puts it just under 10% above the national average, but the state spreads its cost burden more evenly than most. Housing runs 17.4% above average, transportation costs 15.4% above average, and health care comes in 15.3% above average, three categories bunched close together instead of one outlier dragging the whole index up.
Utilities are the exception, coming in below the national average, which helps offset some of the pressure elsewhere. Oregon has no state sales tax, so day to day purchases don't carry the extra cost some shoppers expect when comparing states.
Portland accounts for a big share of the state's population and its housing costs, but rural Oregon isn't cheap either. Coastal towns and areas near Bend have drawn remote workers over the past several years, pushing prices up in places that used to be considered affordable escapes from the city.
Home prices in inland cities like Salem and Eugene run well below what buyers pay in the Portland metro area, though even those markets have grown pricier over the past several years. Oregon's index of 109.6 ranks 38th out of the fifty states, DC and Puerto Rico, just one spot above Arizona.
13. New Hampshire's low taxes don't mean low costs
New Hampshire has no state income tax and no sales tax, which makes its cost of living index of 110.1 a little surprising to people who assume low taxes mean low costs. Housing runs 16.5% above the national average, and utilities aren't far behind at 16.4% above average.
Groceries land almost exactly at the national average, which is rare among states this high up the list. That tells you the pressure in New Hampshire comes specifically from housing and energy, not from broad increases across every category.
Much of the state's cost comes from its proximity to Boston. Southern New Hampshire towns near the Massachusetts border have become commuter suburbs for people priced out of Boston itself, and that demand has pushed home prices up across the whole state, even in towns an hour or more from the city.
Home prices are highest along the seacoast near Portsmouth and in towns bordering Massachusetts, while the state's rural north remains comparatively affordable. New Hampshire's index of 110.1 ranks 39th out of the fifty states, DC and Puerto Rico.
12. Rhode Island's small size drives up utility costs
Rhode Island is the smallest state by land area, and that scarcity shows up directly in its cost of living index of 111.2. Utilities are the biggest outlier at 22.3% above the national average, higher than the state's own housing index of 114.4.
There simply isn't much room to build in Rhode Island, and what land is available sits close to Providence or the coast, both of which command a premium. Miscellaneous goods and services also run nearly 12% above average, suggesting the cost pressure touches daily spending beyond just the roof over your head.
Rhode Island's small size cuts both ways. Commutes are short even across the whole state, so residents pay less in transportation costs than almost anywhere else on this list, with that index sitting barely above the national average.
Newport and the coastal communities along Narragansett Bay carry some of the highest home prices in the state, well above what buyers pay in Providence itself. Rhode Island's index of 111.2 ranks 40th out of the fifty states, DC and Puerto Rico.
11. Vermont's zoning rules keep housing supply tight
Vermont's rural reputation doesn't match its price tag. The state's cost of living index of 113.0 is driven almost entirely by housing, which runs 27.5% above the national average, one of the steepest housing gaps of any state outside the coasts.
Groceries actually come in slightly below the national average, and Vermont has no major cities pulling up transportation or utility costs the way a place like Boston or Seattle would. The problem is supply. Vermont has some of the strictest land use and zoning rules in the country, and new housing construction has lagged population growth for years.
Health care and miscellaneous costs both sit around 8% above average, modest compared to the housing gap but still a real factor for households trying to budget month to month in a state with a small overall economy.
Burlington, the state's largest city, has some of the tightest housing supply in New England, and that scarcity pushes prices up even in the surrounding rural towns. Vermont's index of 113.0 ranks 41st out of the fifty states, DC and Puerto Rico.
10. Connecticut costs reflect its spot next to New York City
Connecticut's cost of living index of 114.2 reflects its position as a bedroom community for New York City. Housing runs 23.5% above the national average, and utilities run even higher at 26.5% above average, the second highest utility cost on this entire list after Alaska.
Fairfield County towns near the New York border see some of the highest home prices in the state, driven by commuters who work in Manhattan but want more space than the city offers. That demand ripples inland, pushing up costs even in towns with no direct rail connection to the city.
Groceries and everyday goods both run roughly 6% to 10% above average, a smaller gap than housing and utilities but still enough to add up over a year. Connecticut's overall cost burden falls harder on renters and homeowners than it does on anyone doing routine grocery shopping.
Housing costs are far more moderate in eastern Connecticut, away from the New York commuter belt, though even there prices sit above the national average. Connecticut's index of 114.2 ranks 42nd out of the fifty states, DC and Puerto Rico.
9. Washington's transportation costs outpace its housing costs
Washington ties Maine for ninth place on this list with a cost of living index of 114.6, but the two states get there in very different ways. Washington's biggest outlier isn't housing, even though that runs 23.1% above the national average. It's transportation, at 31.2% above average, the highest transportation cost of any state on this list except Hawaii.
Seattle's geography plays a role. Water on multiple sides limits how roads and bridges can expand, and ferry travel is simply part of daily life for a lot of residents around Puget Sound. Utilities actually run slightly below the national average, helped by the region's access to hydroelectric power.
Washington has no state income tax, similar to New Hampshire, but that hasn't kept housing affordable in the Seattle metro area, where tech industry wages have pushed home prices well above what most other buyers in the state can compete with.
Eastern Washington, on the other side of the Cascades, runs noticeably cheaper than the Seattle metro area, though wages there tend to run lower too. Washington's index of 114.6 ranks 44th out of the fifty states, DC and Puerto Rico.
8. Maine's housing and heating costs both run high
Maine matches Washington's overall index of 114.6, but housing does almost all the work here, coming in at 34.8% above the national average, the third highest housing cost on this list. Utilities also run high at 24.6% above average, a real burden in a state with long, cold winters and a lot of homes still heated with oil.
Coastal towns like Portland and Bar Harbor have seen home prices climb as remote workers and retirees from Massachusetts and New York relocate for lower density and ocean views, even while the rest of the state's economy hasn't grown at the same pace.
Health care costs run nearly 15% above average too, a bigger gap than most states this far down the list. Maine has an older population than most states, and that shows up directly in the health index.
Inland and northern Maine remain considerably cheaper than the coast, though job opportunities there are also more limited. Maine's index of 114.6 ranks 43rd out of the fifty states, DC and Puerto Rico, just one spot below Washington despite the identical overall score.
7. New Jersey sits between two expensive cities
New Jersey's cost of living index of 118.8 comes almost entirely from housing, which runs 44.3% above the national average. That's not surprising for a state wedged between New York City and Philadelphia, where commuter demand keeps home prices elevated even in towns nowhere near either downtown.
Groceries run about 9% above average and health care runs nearly 16% above average, both meaningful but nowhere near the size of the housing gap. New Jersey also carries the highest property taxes of any state in the country, a cost that doesn't show up directly in this index but adds real pressure on top of already high home prices.
Transportation costs actually stay relatively close to the national average, helped by extensive commuter rail into both New York and Philadelphia that gives residents an alternative to owning and maintaining a car.
South Jersey towns near Philadelphia tend to cost less than the New York side of the state, though the gap has narrowed as more people look for space outside both cities. New Jersey's index of 118.8 ranks 45th out of the fifty states, DC and Puerto Rico.
6. Maryland's costs track its neighbor, Washington DC
Maryland's cost of living index of 121.1 tracks closely with its neighbor to the south. Washington DC itself carries a cost of living index of 134.3, and Maryland's suburbs, especially Montgomery and Prince George's counties, absorb a lot of that pressure. Housing in Maryland runs 49.1% above the national average, nearly half again the national baseline.
Federal government jobs anchor a large share of Maryland's economy, and the steady demand from that workforce has kept home prices climbing even during periods when other markets cooled off. Groceries and utilities both run roughly 9% to 13% above average, adding to the squeeze but not driving it.
Baltimore offers a somewhat more affordable alternative within the state, though even there, prices sit well above what buyers would find in most of the Midwest or South.
Western Maryland, far from the DC suburbs, offers meaningfully lower costs, though it's also farther from the job opportunities driving the state's economy. Maryland's index of 121.1 ranks 46th out of the fifty states, DC and Puerto Rico.
5. New York's statewide number hides a huge local gap
New York's overall cost of living index of 124.7 undersells just how extreme its housing market really is. The state's housing index sits at 172.3, more than 72% above the national average, by far the widest gap between housing and everything else on this list.
Groceries, utilities and miscellaneous goods all sit close to the national average, some barely above it. That split comes directly from how New York's population is distributed. New York City and its surrounding suburbs pull the state's housing number way up, while huge portions of upstate New York, from Buffalo to the Adirondacks, cost far less than the state average suggests.
Anyone using this index to plan a move to New York should look at the specific region, not just the statewide number. A household relocating to Rochester will have a very different experience than one moving to Manhattan or Westchester County.
New York's index of 124.7 ranks 47th out of the fifty states, DC and Puerto Rico, putting it just behind Maryland and just ahead of Alaska.
4. Alaska costs more everywhere, not just in one category
Alaska is the only state on this list where no single category stands out as the obvious driver, because almost everything runs high at once. The state's cost of living index sits at 129.0, and every one of its six cost categories comes in at least 23% above the national average, topped by utilities at 48.4% above average.
Distance explains most of it. Alaska isn't connected to the lower 48 states by road in the way most people picture, and a huge share of goods, from groceries to building materials, arrive by barge or plane. That shipping cost gets baked into the price of nearly everything, which is why groceries alone run 26.6% above the national average.
Health care costs run high too, at nearly 31% above average, a real concern in a state with a smaller population spread across a much larger area, where specialists and hospitals are fewer and farther apart than almost anywhere else in the country.
Alaska's index of 129.0 ranks 48th out of the fifty states, DC and Puerto Rico, ahead of only California, Massachusetts and Hawaii.
3. California's housing costs are nearly double the national average
California's cost of living index of 140.5 puts it firmly in the top three, and housing is the single biggest reason why. The state's housing index sits at 189.5, nearly 90% above the national average. A typical California home now costs close to twice the value of a typical home nationwide, based on separate home value tracking across all fifty states.
Transportation runs 42% above average too, driven by a combination of gas prices, insurance and the sheer distances many Californians drive for work in a state built around car ownership. Utilities aren't far behind at nearly 35% above average.
Coastal cities like San Francisco and Los Angeles pull the statewide numbers up the most, but inland areas of California aren't cheap either compared to most of the rest of the country. Even the state's more affordable regions tend to cost more than the national average across almost every category.
California's index of 140.5 ranks 50th out of the fifty states, DC and Puerto Rico, ahead of only Massachusetts and Hawaii.
2. Massachusetts has the second highest housing costs in the country
Massachusetts lands as the second most expensive state in the country with a cost of living index of 147.8, and its housing index of 217.5 is more than double the national average. Only Hawaii runs higher on housing.
Utilities sit nearly 44% above average and health care runs almost 32% above average, both driven in large part by the concentration of hospitals, universities and biotech employers packed into the Boston metro area. That density creates enormous demand for a limited supply of housing, and prices have climbed accordingly for years.
Groceries and transportation stay more moderate, both under 10% above the national average, which means the squeeze in Massachusetts hits hardest for anyone renting or buying rather than someone just covering day to day expenses. Western Massachusetts offers somewhat more breathing room than Boston, but even there, costs sit well above what most of the country pays.
Massachusetts's index of 147.8 ranks 51st out of the fifty states, DC and Puerto Rico, trailing only Hawaii.
1. Hawaii is the most expensive state in the country
Hawaii is, by a wide margin, the most expensive state in the country. Its cost of living index of 184.8 is nearly 85% above the national average, and its housing index of 302.4 means a typical Hawaii home costs more than three times what the same home would cost almost anywhere else. Separate home value tracking puts the typical Hawaii home at more than double the national figure.
Every category runs high in Hawaii, not just housing. Groceries cost 36.3% above the national average, utilities run 83.5% above average, and transportation costs 49% above average. All of it traces back to the same root cause as Alaska, just amplified. Hawaii is an island chain thousands of miles from the mainland, and shipping costs attach themselves to nearly everything sold there.
Wages in Hawaii haven't kept pace with any of this. A household earning the same salary they'd earn on the mainland will find it buys dramatically less once they've paid for a place to live.
Hawaii's index of 184.8 ranks 52nd out of the fifty states, DC and Puerto Rico, dead last, and by a wide margin. The next closest state, Massachusetts, sits nearly 40 points lower.
