The Cheapest States To Live In The USA 2023

Are you looking to lower your cost of living by moving to a cheaper state? We analyzed the cost of living for every state in the US, and ranked the cheapest states to live in.

We calculated the annual groceries costs, housing costs, utitlities costs, transportation costs, and healthcare costs of each state to find the total expenditures you would need to spend to live in each state for a year.

The cost of living in America varies drastically from state to state. For example, the most expensive state to live in, Hawaii, has total annual expenditures more than double that of the cheapest state to live in, Mississippi. You would need $97,549.48 to live a year in Hawaii while you would only need $43,129.28 to live a year in Mississippi.

The differences in housing costs is perhaps the most drastic. Housing would cost you $30,775.17 per year to live in Hawaii, while it would only cost you $6,297.26 per year to live in Mississippi.

Some people prefer to pay more to live in a busier, more populated city because salaries are also higher in those areas. It can also lead to better networking and more exposure to bigger career opportunities. However, with the current rise of remote work and more people working from home, it's now a better time than ever to move to a cheaper state and lower your cost of living drastically.

Take a look at the full research below.

Which states are the cheapest to live in?

1. Mississippi – Total annual expenditures: $43,129.28 cost of living.
2. Oklahoma – Total annual expenditures: $43,993.90 cost of living.
3. Arkansas – Total annual expenditures: $44,299.06 cost of living.
4. New Mexico – Total annual expenditures: $44,858.52 cost of living.
5. Kansas – Total annual expenditures: $45,011.10 cost of living.

The cheapest state to live in is Mississippi, followed by Oklahoma, Arkansas, New Mexico, and Kansas.

Which states are the most expensive to live in?

1. Hawaii – Total annual expenditures: $97,549.48 cost of living.
2. California – Total annual expenditures: $70,034.22 cost of living.
3. New York – Total annual expenditures: $69,830.78 cost of living.
4. Oregon – Total annual expenditures: $68,152.40 cost of living.
5. Massachusetts – Total annual expenditures: $66,168.86 cost of living.

The most expensive state to live in is Hawaii, followed by California, New York, Oregon, and Massachusetts.

Which states have the lowest groceries costs?

1. Michigan – Total annual expenditures: $3,555.98
2. Texas – Total annual expenditures: $3,568.01
3. Kentucky – Total annual expenditures: $3,632.15
4. Arkansas – Total annual expenditures: $3,656.21
5. West Virginia – Total annual expenditures: $3,676.25

Which states have the lowest housing costs?

1. Mississippi – Total annual expenditures: $6,297.26
2. Alabama – Total annual expenditures: $6,540.54
3. Oklahoma – Total annual expenditures: $6,577.97
4. Missouri – Total annual expenditures: $6,606.04
5. Georgia – Total annual expenditures: $6,755.75

Which states have the lowest utilities costs?

1. Idaho – Total annual expenditures: $3,136.14
2. Montana – Total annual expenditures: $3,185.62
3. Wyoming – Total annual expenditures: $3,231.29
4. Oregon – Total annual expenditures: $3,318.83
5. Colorado – Total annual expenditures: $3,349.28

Which states have the lowest transportation costs?

1. Arkansas – Total annual expenditures: $3,848.11
2. West Virginia – Total annual expenditures: $4,018.42
3. Mississippi – Total annual expenditures: $4,124.29
4. Oklahoma – Total annual expenditures: $4,147.30
5. Alabama – Total annual expenditures: $4,147.30

Which states have the lowest healthcare costs?

1. Arkansas – Total annual expenditures: $5,822.51
2. Maryland – Total annual expenditures: $5,924.54
3. West Virginia – Total annual expenditures: $5,978.96
4. Mississippi – Total annual expenditures: $6,094.59
5. Alabama – Total annual expenditures: $6,094.59

Looking to move up north? Check out the cheapest cities to live in Canada here.