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Cheapest States to Live in 2026

Which state is cheapest depends on what you earn and how you file. A zero-income-tax state doesn’t automatically win — if its cost of living is high, a state with a modest income tax and significantly below-average prices can easily outrank it.

Each scenario below runs a gross salary through real 2025 federal and state tax brackets, then adjusts the take-home figure for the Bureau of Economic Analysis’s Regional Price Parities (2024 data, national average = 100). The result is purchasing power: what your after-tax dollars actually buy relative to the national average. States ranked first are the ones where your money goes the furthest.

#StateTake-Home PayPurchasing PowerCost Level
Most affordable
1South Dakota$61,314$69,210-11.4%
2North Dakota$61,089$68,670-11.0%
3Louisiana$59,439$67,383-11.8%
4Arkansas$58,568$67,366-13.1%
5Mississippi$58,555$67,343-13.0%
6Tennessee$61,314$66,739-8.1%
7Iowa$58,464$66,617-12.2%
8Oklahoma$58,241$66,304-12.2%
9Wyoming$61,314$66,149-7.3%
10West Virginia$58,537$65,404-10.5%
Least affordable
41Virginia$57,747$57,119+1.1%
42Colorado$58,674$56,937+3.0%
43Connecticut$57,938$55,920+3.6%
44Maryland$57,932$55,194+5.0%
45Massachusetts$57,564$54,428+5.8%
46New Jersey$58,662$53,913+8.8%
47New York$57,793$53,552+7.9%
48Oregon$55,305$53,507+3.4%
49California$58,296$52,652+10.7%
50Hawaii$57,057$51,893+10.0%

Want to see how a specific move stacks up? The calculator compares real take-home pay and cost of living between any two states, side by side.

Open the Calculator

Sources

  • IRS, 2025 federal income tax brackets and standard deductions
  • Tax Foundation, 2025 state income tax data
  • Social Security Administration (SSA), FICA wage bases and rates, 2025
  • Bureau of Economic Analysis (BEA), Regional Price Parities by state, 2024