The 10 Cheapest States to Live in 2026

Pros

• +Northwest Arkansas (Bentonville, Fayetteville) is a corporate hub for Walmart, Tyson, J.B. Hunt
• +Property tax 0.57%, well below average
• +Outdoor amenities are exceptional, particularly the Ozarks
• +Walton Foundation has invested heavily in NWA cultural infrastructure

Cons

• -NWA housing is rising fast and now well above the state average
• -Income tax up to 3.9%
• -Healthcare quality outside metros is weak
• -Education rankings remain in the bottom 15 nationally

Pros

• +Cheapest housing in the country at $162,100 median
• +No tax on Social Security and a flat 4% income tax (2026)
• +Property tax is only 0.63% effective, well below national average
• +Long growing season and warm climate

Cons

• -Median household income just $46,511, the lowest in the US
• -Healthcare access scores poorly; rural hospital closures are ongoing
• -Education rankings are persistently in the bottom three nationally
• -Hurricane and tornado exposure raises insurance premiums

Pros

• +Top-quartile K-12 education statewide
• +Low uninsured rate (4.8%) and strong rural healthcare
• +Median home $208,700 with low housing index of 70
• +Stable, diverse Midwest economy

Cons

• -Property tax 1.43%, above national average
• -Income tax now a flat 3.8%, but property tax stays high
• -Severe winters increase utility costs
• -Population is older and growing slowly

Pros

• +Median home price under $200,000
• +Income tax tops out at 4.5% after the 2026 bracket consolidation
• +Strong energy sector wages in OKC and Tulsa
• +Low utility bills outside summer cooling season

Cons

• -Highest uninsured rate in the cheap states list at 13.2%
• -Combined sales tax can hit 9% in some cities
• -Tornado and severe weather exposure
• -Healthcare quality lags national norms

Pros

• +Housing rents price at 63.1 against a national 100.6
• +Median home $198,200, average 2-bedroom rent $930 a month
• +State income tax 3%, effective property tax 0.52 percent
• +Utilities price at 71.5 against a national 98.4

Cons

• -Median household income $52,295
• -8.4 percent of residents are uninsured
• -Broadband averages 155 Mbps
• -No curated write-up yet: these points are read off the dataset rather than researched

Pros

• +Housing rents price at 67.6 against a national 100.6
• +Median home $285,400, average 2-bedroom rent $920 a month
• +No state income tax
• +Utilities price at 79.7 against a national 98.4

Cons

• -Median household income $63,920
• -8.2 percent of residents are uninsured
• -Medicaid was not expanded
• -No curated write-up yet: these points are read off the dataset rather than researched

Pros

• +Lowest property tax in the country at 0.39% effective
• +Median home price $216,500
• +Tuscaloosa, Huntsville, and Birmingham offer strong job markets
• +Mild winters reduce heating costs

Cons

• -Sales tax can climb past 10% combined in cities
• -Groceries are still taxed (2% state rate since September 2025, plus local)
• -Healthcare access is uneven outside metros
• -Education rankings are consistently below average

Pros

• +Housing rents price at 71.4 against a national 100.6
• +Median home $248,500, average 2-bedroom rent $920 a month
• +State income tax 1.95-2.5%, effective property tax 0.94 percent
• +Utilities price at 73.7 against a national 98.4

Cons

• -Median household income $66,519
• -6.8 percent of residents are uninsured
• -Broadband averages 140 Mbps
• -No curated write-up yet: these points are read off the dataset rather than researched

Pros

• +Cheapest median home in the US at $145,600
• +Property tax just 0.53%
• +Medicare-friendly state with no tax on Social Security
• +Public lands and outdoor recreation in abundance

Cons

• -Population is shrinking; some counties have lost healthcare facilities
• -Limited high-paying job market outside DC commuter belt
• -Broadband availability is the lowest in the country at 62%
• -Aging population strains state services

Pros

• +Housing rents price well below the national level, putting a $200k home within reach
• +Strong K-12 system in eastern metros (KC suburbs, Lawrence)
• +Clean job market in agriculture, aerospace, and logistics
• +Median income $64,521, higher than most cheap states

Cons

• -Property tax is 1.28%, above the national average
• -Sales tax up to 8.7% combined; the state grocery tax ended in 2025 but local rates still apply
• -Tornado Alley exposure
• -Western Kansas has limited healthcare access