Salary vs expenses: how much do residents of different states of America earn and spend

We all know that salaries vary greatly from state to state. But the costs are the same. Therefore, when choosing a place to live, it is important to consider not only the level of salary, but also the amount of expenses. We decided to compare these data to make it a little easier for you to choose a place to live.

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Average income in the USA

As of 2023, average wages in the US vary widely by industry, job title, age group, experience level, and education. Yahoo!.

It is important to note that the average wage in each US state can vary widely, starting with a minimum hourly wage of $27,77. Depending on the profession and place of residence, it can reach an average of $45 to $060 per year.

The average annual salary in the United States is $89 per year. This indicates that half the population earns less than this amount, while the rest earn more than the average.

What is a good salary in the USA

A good salary in the US depends on various factors, but as a rule, a comfortable standard of living is achievable with an annual income of between $70 and $000 per person.

If you're looking for the best place to live, you'll find that some states will let you live on your money better than others. Using data from the Missouri Center for Economic Research and Information and the Bureau of Labor Statistics, GOBankingRates determined the cost of living index in each state compared to the national average. The study included expenses related to six categories: housing, utilities, groceries, healthcare, transportation, and others.

Please note that the average annual salary is for 1 person, and the total annual expenses were calculated for a family of 4 (two working adults and two children).

50. Mississippi

• Average annual salary: $ 45
• Total annual expenses: $ 56

A southern US state rich in history and rich in natural beauty, Mississippi is the state with the lowest average annual salary in the US.

But, with a cost of living that is 15% lower than the national average, Mississippi is the cheapest place to live in the US. Utilities are 11,1% lower than the national average, groceries are 6,6% cheaper, and housing is a whopping 32,6% cheaper.

49. Arkansas

• Average annual salary: $ 48
• Total annual expenses: $ 60

The state of Arkansas in the southern United States is known for its picturesque landscapes and the Ozark Mountains.

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Arkansas has moved from the fourth cheapest state in the US to 11th. You can expect to pay 9,4% less than the average American to maintain your lifestyle. The largest savings are in housing, where the state average is 22,1% lower than the rest of the country.

48. West Virginia

• Average annual salary: $ 49
• Total annual expenses: $ 60

West Virginia is known for its scenic beauty, including the New River Gorge, and rich history of coal mining. Dominion Energy Inc (NYSE:D) is one of the largest companies in West Virginia.

While transportation costs are 11,2% higher than the U.S. average and healthcare costs are 1,8% higher, everything else is cheaper in the state. The biggest gap is in housing, which is 31,2% cheaper than average.

47. South Dakota

• Average annual salary: $ 49
• Total annual expenses: $ 63

South Dakota is known for Mount Rushmore, Badlands National Park, and large farmlands. In 2022, it became one of the states with the largest decline in unemployment.

Residents of South Dakota pay 5,5% less than the rest of the country. Housing here is 7,1% below average, but food is 4,3% more expensive than in other regions.

46. Alabama

• Average annual salary: $ 50
• Total annual expenses: $ 58

With a rich history of civil rights and Southern charm, Alabama is one of the original thirteen colonies of the United States.

Alabama is the fourth cheapest state in America. Utilities here are actually 7% more expensive than in the country as a whole, but everything else is cheaper, especially housing - by 30,4%.

45. South Carolina

• Average annual salary: $ 50
• Total annual expenses: $ 63

South Carolina is a southeastern US state known for its beautiful Atlantic coasts and beaches.

In South Carolina, the cost of living is 5,7% lower than the national average (compared to a 0,5% increase in 2017). While housing is 18,4% cheaper here, utilities are 10,6% more expensive than average.

44. Louisiana

• Average annual salary: $ 50
• Total annual expenses: $ 62 645

Louisiana is famous for its unique Creole and Cajun culture, rich and traditional history, and distinctive cuisine.

It has been falling in price over the past few years and now ranks 18th on the list of affordable living options. Its cost is 6,4% lower than the national average, and housing costs are more than 13%.

43. Oklahoma

• Average annual salary: $ 50
• Total annual expenses: $ 57

Oklahoma is located in the south-central United States, known for its Native American heritage, cowboy culture, and vast prairies. It is the 29th largest economy in the US.

In Oklahoma, the overall cost of living is 14,2% lower than the national average, which explains the state's move from fifth (cheapest) in the country in 2017 to second in 2023. However, the real savings are in housing: people here pay 29,8% less than in the rest of the country.

42. Idaho

• Average annual salary: $ 51
• Total annual expenses: $ 66

Idaho is a state known for its scenic landscapes, including mountains, forests, and fertile farmland, as well as potatoes.

Idaho boasts a fairly cheap cost of living that is less than a full percentage point lower than the national average. Some expenses are below average, such as food and housing, but others are higher, including transportation, which is 12,6% more than the national average, and housing (which is 5% above the average).

41. Kentucky

• Average annual salary: $ 51
• Total annual expenses: $ 63

Kentucky is famous for its bourbon production, horse racing, and musical heritage. It is a leading tobacco manufacturer.

The state ranks 22nd on the list, with the cost of living overall being 5,1% lower than the rest of the country. However, this does not apply to all expenses. While housing is 22,7% cheaper than in the rest of the country, utilities are 6,1% more expensive and other expenses are 7% higher.

40. Montana

• Average annual salary: $ 52
• Total annual expenses: $ 70

Montana is home to Glacier National Park, known for its stunning glaciers and pristine wilderness.

The total cost of living in the state is above the national average, but only by 4,8%. The state remains very close to the overall national average thanks to housing costs, being 22,5% cheaper.

39. Tennessee

• Average annual salary: $ 52
• Total annual expenses: $ 60

It is a southeastern state with a rich musical heritage, including the birthplace of Elvis Presley in Memphis and the Grand Ole Opry in Nashville.

Residents of the state have a cost of living that is 9,8% lower than the national average. Tennessee has become the tenth cheapest state to live in.

38. Kansas

• Average annual salary: $ 52
• Total annual expenses: $ 58

Kansas has some of the most affordable living costs in the country, largely due to economical housing and rent, relatively low food costs, and lower health care costs.

Kansas residents spend about 12,5% ​​less than the average American, making it the third cheapest state in the country. Although life is cheaper across the board, housing costs are 28,9% lower than the average.

37. Indiana

• Average annual salary: $ 53
• Total annual expenses: $ 60

Indiana is known for its auto racing culture, hosting the iconic Indianapolis 500 at the Indianapolis Motor Speedway.

Indiana is the 8th cheapest state in America. All costs are below the national average, with housing being 22,6% cheaper at just $10 per year.

36. Iowa

• Average annual salary: $ 53
• Total annual expenses: $ 59

The state is known for its agricultural land.

The cost of living in Iowa is cheaper in every category except healthcare, which is in the national average. It is the 7th cheapest state on this list.

35. New Mexico

• Average annual salary: $ 54
• Total annual expenses: $ 62

Located in the southwest, New Mexico is known for its cultural heritage, including strong Native American, Hispanic, and Anglo influences.

With a cost of living that is more than 6% lower than the national average, New Mexico is one of the 20 cheapest states in the country. Utilities are below average by more than 10,4% and housing by 11,6%. Only healthcare is more expensive than the US average.

34. Wyoming

• Average annual salary: $ 54
• Total annual expenses: $ 61

Wyoming is a state in the western United States with harsh landscapes, Yellowstone and cattle breeding. For life, this is one of the most favorable administrative-territorial formations.

The sparsely populated western state of Wyoming remains the 16th cheapest state since 2017. The cost of living there is still 7,5% lower than the country as a whole.

33. Missouri

• Average annual salary: $ 54
• Total annual expenses: $ 59

Missouri is a state in the Midwestern United States known for its Gate Arch. According to Movoto, the average monthly cost of living in Missouri ranges from $2 to $202 per month.

Missouri is the sixth cheapest state in America. Housing is 20,1% lower than the national average. All other expenses are within five to ten percentage points less.

32. Nebraska

• Average annual salary: $ 55
• Total annual expenses: $ 61

Nebraska is a Great Plains state with cornfields, Sandhills and a history of settlers.

In Nebraska, the cost of living is 8,1% lower than the national average, making the state one of the 12 cheapest in America. The level of all categories is lower across the board, with the exception of healthcare, which is 3,4% more expensive than in the rest of the country.

31. Nevada

• Average annual salary: $ 55
• Total annual expenses: $ 69

Nevada is a state in the southwestern United States, where Las Vegas is located, many deserts and casinos. According to Movoto, the typical tenant in Nevada spends $1060 per month on housing.

If you want to live in Nevada, it will cost you 3,2% more than the average American pays. The biggest spending is utilities, which cost 16% more than the national average, but health care is not far behind at 15,2% more.

30. North Dakota

• Average annual salary: $ 55
• Total annual expenses: $ 64

North Dakota is known for its vast prairies, oil production, and friendly communities.

With a cost of living index that is 2,9% lower than America as a whole, North Dakota sits right in the middle of the list. Health care spending is high at 13,8% above average, but housing is 9,3% below average.

29. Maine

• Average annual salary: $ 55
• Total annual expenses: $ 77

Maine is best known for its scenic coastline, lobster, and maritime heritage.

In the state, the cost of living is 15,3% above average. Residents have to pay a high price for housing, which is 25% higher than the national average. Other expenses are 17% higher than the average, which is also a lot.

28. Florida

• Average annual salary: $ 55
• Total annual expenses: $ 68

Florida is a southeastern state with sunny beaches, theme parks, and wildlife.

In 2021, the cost of living in the Sunshine State was less than 1% lower than the rest of the country, but it has now risen by 2,8%. Food, utilities are all a few points higher than the national average, while transportation and healthcare are slightly lower.

Florida is home to some of the best cities in terms of investment property ownership.

27. Wisconsin

• Average annual salary: $ 56
• Total annual expenses: $ 63

Wisconsin is a Midwestern state famous for its dairy farming, cheese production, and Green Bay Packers football.

Housing in Wisconsin costs 14,7% less than the nation as a whole.

26. North Carolina

• Average annual salary: $ 56
• Total annual expenses: $ 64

North Carolina is a state with beautiful beaches, the Blue Ridge Mountains, and vibrant cities.

Health care spending in the state is 4,3% higher than the national average, but everything else is slightly lower — that is, everything except health care, which is 9,1% higher. However, housing is 10% cheaper than in other regions of the country.

25. Ohio

• Average annual salary: $ 56
• Total annual expenses: $ 61

Ohio is popular for its industrial history, sports teams, and vibrant lifestyle. The typical Ohio tenant is likely to spend $788 per month on housing.

In this state, the cost of living is 8,1% lower than the national average. Everything else is cheaper, but not much (with the exception of housing, which is sold at a discount of almost 25%).

24. Texas

• Average annual salary: $ 57
• Total annual expenses: $ 61

Texas is the second largest state in the US both in terms of area and population. It is known for its cowboy culture and oil industry.

The total cost of living in Texas is 7,5% lower than the national average, placing the state in the top 15 cheapest in America. Housing is the cheapest at 15,3%, groceries are 9,7% less, and other expenses are 3,1% lower.

Oh yeah, and no state income tax.

23. Utah

• Average annual salary: $ 57
• Total annual expenses: $ 68

Utah is a western state with stunning national parks and Mormon heritage. Domo Inc and Zions Bancorporation are the two largest companies in the region.

Utah is the 29th cheapest state, which means everything here is 2,8% more expensive than the national average. Housing and transport are 8% more expensive, but health care is 8,1% cheaper.

22. Georgia

• Average annual salary: $ 58
• Total annual expenses: $ 59

The cost of living in Georgia is 11,4% lower than in the rest of the country. This makes the state the fifth cheapest in America. All spending across the board is lower than the national average, and housing is almost 25% cheaper than in other regions.

21. Michigan

• Average annual salary: $ 58
• Total annual expenses: $ 61

Michigan, the Great Lakes state, is known for its automotive industry, lakeshores, and Motown music.

Michigans pay an average of 7,8% less than the average American for general living expenses. However, the cost of utilities, healthcare and transportation is only a few percentage points lower than in the rest of the country.

20. Pennsylvania

• Average annual salary: $ 58
• Total annual expenses: $ 65

Pennsylvania is an eastern state with historical significance, Amish culture and iconic Philadelphia landmarks.

Living in Pennsylvania is 1,8% more expensive than the national total, and other expenses nearly reflect the average. Costs vary widely here, with housing costs 11,9% lower than the national average, but utilities 8,9% higher.

19. Arizona

• Average annual salary: $ 58
• Total annual expenses: $ 70

Although the state was in the middle of the list in 2017 (25th), Arizona is now the 36th cheapest state in America. The cost of living there is 5,8% higher than the national average, down from 4,4% lower in 2017.

18. Vermont

• Average annual salary: $ 59
• Total annual expenses: $ 77

Vermont is famous for its maple syrup and scenic beauty.

It joins its New England neighbors with a high cost of living—in this case, 15,9% above average. Housing costs almost 32% more than the national average. Transport is 18,3% more expensive, and utilities are 22,3% higher than average.

17. Hawaii

• Average annual salary: $ 61
• Total annual expenses: $ 123

Hawaii is a tropical paradise located in the Pacific Ocean, known for its beaches, volcanoes and rich Polynesian culture. It is one of the states that does not tax Social Security or pensions.

Hawaii has been the most expensive state to live in America for many years now. This year, however, island residents can expect an astronomical 84% higher than the national average. Much of this high performance can be attributed to home purchases, which cost an astonishing 314% more than the average. And the rent is not the best either.

16. Delaware

• Average annual salary: $ 62
• Total annual expenses: $ 70

Delaware is a state with no sales tax and a rich history.

Residents of the state can expect to spend 5,6% above the average. Groceries are 5,3% more expensive and other expenses are 7% higher. Even housing is 5% more expensive.

15. New Hampshire

• Average annual salary: $ 62
• Total annual expenses: $ 77

New Hampshire is a state in the New England region with rich natural beauty and mountains.

In New Hampshire, the cost of living is 16,1% above average. Healthcare is the biggest hurdle — it is a whopping 30,6% higher than the nation as a whole. Other expenses exceed the average by 27%.

14. Oregon

• Average annual salary: $ 62
• Total annual expenses: $ 81

Oregon is a state famous for its forests and craft beer. It is known for its progressive environmental policies and quaint Portland.

Only Indiana is higher on the list of the most expensive states compared to Oregon. In this northwestern state, the cost of living is 21,2% higher than the national average.

13. Minnesota

• Average annual salary: $ 63
• Total annual expenses: $ 65

This state, often known as the land of 10 lakes, is the nation's largest producer of sugar beets and sweet corn.

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Residents of Minnesota pay a little less than the national average - by 4,5%. The biggest gap is housing, which costs 15,3% less. However, with costs 12,3% higher than the national average, healthcare is the most expensive category.

12. Illinois

• Average annual salary: $ 63
• Total annual expenses: $ 61

Illinois is widely recognized for Chicago's skyline and agriculture. The state is a major transportation hub, and Chicago O'Hare International Airport is one of the most profitable in the world.

The state ranks 17th on the list for cost of living. Healthcare is 5,8% higher than the national average, but other spending is below average.

11. Rhode Island

• Average annual salary: $ 64
• Total annual expenses: $ 75

Rhode Island is a small New England state with a beautiful coastal area and rich history.

It is the smallest state in the country, but the cost of living is 12,9% higher than the US average. This New England state is in the top 15 most expensive states.

10. Virginia

• Average annual salary: $ 65
• Total annual expenses: $ 68

Virginia is an eastern state rich in colonial history, with Jamestown, Monticello, and the Shenandoah National Park. These historic parks reflect Virginia's rich heritage, landscapes, and cultural heritage.

With a cost of living that is 2,8% higher than the national average, Virginia ranks 31st on the list. This is three positions higher than in 2017 with 28th place.

9. Alaska

• Average annual salary: $ 66
• Total annual expenses: $ 84

Alaska is the northernmost state and the most isolated state in the United States, with a population of 732 as of 673.

In America's largest state, the cost of living is 26,6% higher than the national average. In 2021, this figure was slightly higher at 31,3%.

8. Colorado

• Average annual salary: $ 67
• Total annual expenses: $ 70

Oracle Corporation and Amazon.com Inc are the two largest companies in the state. Colorado is famous for the Rocky Mountains, skiing and progressive cities. This explains why it attracts outdoor enthusiasts and nature lovers alike.

In Colorado, the cost of living is 4,6% higher than the national average, but there are some wild fluctuations between categories in the state. The cost of housing, for example, is 20% higher than the average, but residents pay 8,9% less for utilities. Healthcare spending is 4% lower than the average.

7. Connecticut

• Average annual salary: $ 69
• Total annual expenses: $ 78

Connecticut is located in New England with its colonial history and proximity to major cities. It combines elements of history with modern infrastructure. This is one of the richest administrative-territorial entities in the United States.

After 2018, when the state dropped two spots from the seventh most expensive place in the country to ninth, Connecticut is now back at seventh place. Overall, the cost of living here is 16,8% higher than the rest of the country. Life is more expensive than the average in all categories. Utilities cost 30,3% more than the national average, and housing costs 26%.

6. Maryland

• Average annual salary: $ 69
• Total annual expenses: $ 82

It is an eastern state with the Chesapeake Bay, Baltimore Harbor and rich history.

Maryland is the sixth most expensive state in America. The cost of living is 24% higher than the national average, mainly due to huge housing bills that are 64% higher than the national average.

5. New Jersey

• Average annual salary: $ 70
• Total annual expenses: $ 75

New Jersey is known for its diverse communities, Atlantic coastline, and proximity to New York City and Philadelphia, which offer a mix of city attractions with a beach getaway. This is one of the richest states in the US.

The biggest reason the cost of living in the state is 12,4% higher than the national average is housing, which costs 32% more than the national average. In fact, everything is a little more expensive in New Jersey, except for healthcare, which is 4,9% below average.

4. Washington

• Average annual salary: $ 72
• Total annual expenses: $ 76

Washington DC is home to the stunning Cascade Range, Seattle Tech Center, and a host of outdoor recreation opportunities including Mount Rainier and Olympic National Park.

Washington state is 14,2% more expensive than the national average. The biggest burden in the expensive North West state is housing, which costs 26% more than the country as a whole. Health care costs are also 20,6% higher than average, and transportation costs are 14%. Only utilities are cheaper - they are 11,6% less than the national average.

3. California

• Average annual salary: $ 73
• Total annual expenses: $ 92

California is famous for Hollywood, Silicon Valley and iconic landmarks such as the Golden Gate Bridge and Yosemite National Park, which is a unique combination of cultural heritage and nature. Here is one of the highest average salaries in the US.

California is the third most expensive state in the entire country, with a cost of living 37,6% higher than the US average. In the Golden State, everything is astronomical 94% more expensive than the national average, housing prices are simply colossal.

2. New York

• Average annual salary: $ 74
• Total annual expenses: $ 90

The state of New York, located in the northeastern United States, is known for its iconic New York City, a global center for finance, culture, and the arts. The Big Apple is one of the richest metropolitan areas in the world with over 340 millionaires.

In 2017, living in New York was more expensive than in any other state in the continental United States, except for Washington, DC. However, now, in 2023, New York has fallen to the fourth place among the most expensive states. The main reason for the transition is related to housing, the cost of which is 94% higher than the national average.

1. Massachusetts

• Average annual salary: $ 76
• Total annual expenses: $ 100

Massachusetts has a prominent place in American history. The home in Boston, the Cradle of Liberty, played a key role in the American Revolution. The state has prestigious universities including Harvard and the Massachusetts Institute of Technology and is a hub for healthcare, technology and biotechnology. Its coastal beauty, cultural attractions and progressive values ​​contribute to the state's unique charm.

Massachusetts ranks second on the list of the most expensive states in the country, up from 5th in 2017. The cost of housing is a staggering 124% higher than in other regions of the country, as are other expenses in other states.

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