CostOfLivingByState

The 10 Most Expensive States to Live in 2026

The 10 dearest states on the BEA all-items price parity, reference year 2024, US = 100. Why each state is expensive, which component is driving it, and whether higher wages offset the higher costs. Honest data on the trade-off, not a sales pitch for either side.

At a glance

Top 10 ranked side by side

RankStateAll itemsHousing rentsMedian HomeAvg 2BR RentMedian Income
#1California110.7154.3$785,300$2,120$84,907
#2Hawaii110.0125.3$978,200$2,350$84,857
#3New Jersey108.8134.3$472,500$1,720$85,245
#4New York107.9122.2$435,800$1,780$74,314
#5Washington107.0126.0$568,500$1,780$82,228
#6Massachusetts105.8128.1$598,700$2,280$89,645
#7Maryland105.0121.1$398,500$1,620$87,063
#8New Hampshire104.2114.9$425,800$1,580$83,449
#9Connecticut103.6117.0$395,100$1,520$83,771
#10Florida103.4122.1$398,500$1,620$63,062

The wage offset

Higher costs, but also higher pay

Adjust the all-items price parity by median household income, against a national median of $75,000. A score above 100 means the state costs more than local wages can absorb on average. Below 100 means wages cover the gap.

StateCOLIMedian IncomeIncome-adjusted indexVerdict
California110.7$84,90797.8Roughly balanced
Hawaii110.0$84,85797.2Roughly balanced
New Jersey108.8$85,24595.7Roughly balanced
New York107.9$74,314108.9Roughly balanced
Washington107.0$82,22897.6Roughly balanced
Massachusetts105.8$89,64588.5Wages cover
Maryland105.0$87,06390.5Wages cover
New Hampshire104.2$83,44993.7Wages cover
Connecticut103.6$83,77192.8Wages cover
Florida103.4$63,062123.0Costs win

Per-state breakdown

Each state in detail

Rank #1

California

110.7

overall index

Best for: Tech, entertainment, and biotech workers

Housing rents154.3very high
Goods106.1high
Utilities158.9very high
Other services102.6average

Median home

$785,300

Average 2BR rent

$2,120

Median household income

$84,907

Tax snapshot

Income: 1-13.3%
Property: 0.71%
Sales: 7.25%

What $80,000 buys here

$80,000 in California has the same purchasing power as $88,560 at the national average.

Primary cost driver: Utilities and housing rents. The utilities parity is 158.9 and housing rents 154.3, against US levels of 98.4 and 100.6

Pros

  • +Highest tech wages in the country, particularly in the Bay Area
  • +World-class climate, geography, and cultural amenities
  • +Strong renewable energy adoption keeps utility growth in check
  • +Diverse, large economy with many career paths

Cons

  • -Median home $785,300, with major metros well over $1M
  • -Income tax up to 13.3% in the highest bracket
  • -Wildfire and earthquake risk drives property insurance up
  • -Major homelessness and infrastructure pressures in big cities

Rank #2

Hawaii

110.0

overall index

Best for: Lifestyle premium, not financial return

Housing rents125.3very high
Goods111.6high
Utilities190.2very high
Other services102.9average

Median home

$978,200

Average 2BR rent

$2,350

Median household income

$84,857

Tax snapshot

Income: 1.4-11%
Property: 0.28%
Sales: 4.00%

What $80,000 buys here

$80,000 in Hawaii has the same purchasing power as $88,000 at the national average.

Primary cost driver: Imported goods, energy costs, and constrained housing supply

Pros

  • +Highest median property tax exemption protects long-term residents
  • +Property tax effective rate is the lowest in the US at 0.28%
  • +World-class climate and outdoor lifestyle
  • +Low uninsured rate (4.1%) and reasonable healthcare access

Cons

  • -Median home approaches $1M
  • -Electricity averages 42 cents per kWh, more than 2.5x the US average
  • -Groceries are 50% above national average; nearly all imported
  • -Limited high-paying career options outside tourism, military, and government

Rank #3

New Jersey

108.8

overall index

Best for: NYC commuters wanting more space

Housing rents134.3very high
Goods107.1high
Utilities114.2high
Other services103.5average

Median home

$472,500

Average 2BR rent

$1,720

Median household income

$85,245

Tax snapshot

Income: 1.4-10.75%
Property: 2.23%
Sales: 6.63%

What $80,000 buys here

$80,000 in New Jersey has the same purchasing power as $87,040 at the national average.

Primary cost driver: Highest property tax in the country, paired with NYC commuter housing

Pros

  • +Median household income $85,245, top 5 nationally
  • +Suburban schools amongst the best in the US
  • +Direct NYC access via NJ Transit
  • +Strong healthcare system; low uninsured rate

Cons

  • -Property tax 2.23%, the highest in the US
  • -Median home $472,500, rents $1,720
  • -Income tax up to 10.75%
  • -Sandy-era flood insurance still pressures coastal premiums

Rank #4

New York

107.9

overall index

Best for: Finance, media, and creative careers concentrated in NYC

Housing rents122.2very high
Goods107.3high
Utilities134.4very high
Other services104.1average

Median home

$435,800

Average 2BR rent

$1,780

Median household income

$74,314

Tax snapshot

Income: 3.9-10.9%
Property: 1.40%
Sales: 4.00%

What $80,000 buys here

$80,000 in New York has the same purchasing power as $86,320 at the national average.

Primary cost driver: NYC housing and elevated taxes statewide

Pros

  • +Strongest finance and media job market in the US
  • +Excellent transit in NYC; comprehensive healthcare networks
  • +Upstate housing is genuinely affordable (Buffalo, Rochester, Syracuse)
  • +Diverse cultural amenities at every price point

Cons

  • -NYC distorts the state average; Manhattan rents push past $4,500/2BR
  • -Income tax up to 10.9%, with NYC adding its own city tax
  • -Property tax 1.40% effective, higher in Westchester and Long Island
  • -High utility bills, particularly in winter heating

Rank #5

Washington

107.0

overall index

Best for: Tech and aerospace workers who want no state income tax

Housing rents126.0very high
Goods104.4average
Utilities92.9low
Other services103.9average

Median home

$568,500

Average 2BR rent

$1,780

Median household income

$82,228

Tax snapshot

Income: 0%
Property: 0.84%
Sales: 6.50%

What $80,000 buys here

$80,000 in Washington has the same purchasing power as $85,600 at the national average.

Primary cost driver: Puget Sound housing. The housing rents parity is 126.0 against a US level of 100.6

Pros

  • +No state income tax
  • +Median household income $82,228, well above the national median
  • +Concentrated tech, aerospace and logistics employers in the Seattle area
  • +Electricity at 10.15 cents per kWh, the lowest residential rate in the country

Cons

  • -Median home $568,500; 2BR rent $1,780
  • -Sales tax 6.5% state, higher with local add-ons, and no income tax deduction to offset it
  • -Goods parity 104.4 against a US level of 99.6
  • -The state figure is an average across very different regional housing markets

Rank #6

Massachusetts

105.8

overall index

Best for: High-earning professionals and academics

Housing rents128.1very high
Goods98.8average
Utilities152.1very high
Other services102.9average

Median home

$598,700

Average 2BR rent

$2,280

Median household income

$89,645

Tax snapshot

Income: 5% + 4% surtax >$1M
Property: 1.12%
Sales: 6.25%

What $80,000 buys here

$80,000 in Massachusetts has the same purchasing power as $84,640 at the national average.

Primary cost driver: Boston-area housing demand and a 4% surtax on income above $1M

Pros

  • +Median household income $89,645, third highest in the US
  • +Top-ranked healthcare system; lowest uninsured rate at 2.9%
  • +World-class universities and research economy
  • +Excellent public transit in Boston metro

Cons

  • -Median home $598,700; 2BR rent above $2,200
  • -Income tax 5% with a 4% surtax above $1M
  • -Property tax 1.12% on already-elevated home values
  • -Heating costs are amongst the highest in the country

Rank #7

Maryland

105.0

overall index

Best for: Federal government and biotech workers

Housing rents121.1very high
Goods102.5average
Utilities110.9high
Other services101.6average

Median home

$398,500

Average 2BR rent

$1,620

Median household income

$87,063

Tax snapshot

Income: 2-6.5%
Property: 0.99%
Sales: 6.00%

What $80,000 buys here

$80,000 in Maryland has the same purchasing power as $84,000 at the national average.

Primary cost driver: DC commuter housing market drives the entire state

Pros

  • +Highest median household income in the US at $87,063
  • +Strong federal government and Johns Hopkins-anchored biotech economy
  • +Excellent public schools in Montgomery and Howard counties
  • +Coastal access plus mountain access within 3 hours

Cons

  • -Median home $398,500; rents $1,620 average
  • -Income tax up to 6.5% (new top brackets from 2025) plus county piggyback taxes
  • -Property tax 0.99% effective
  • -Traffic congestion in the DC corridor is severe

Rank #8

New Hampshire

104.2

overall index

Best for: High earners optimising tax structure

Housing rents114.9high
Goods98.6average
Utilities133.7very high
Other services103.9average

Median home

$425,800

Average 2BR rent

$1,580

Median household income

$83,449

Tax snapshot

Income: 0%
Property: 1.86%
Sales: 0.00%

What $80,000 buys here

$80,000 in New Hampshire has the same purchasing power as $83,360 at the national average.

Primary cost driver: Property tax compensates for the lack of income tax

Pros

  • +No income tax (the interest-and-dividends tax was repealed in 2025)
  • +No sales tax
  • +High median income at $83,449
  • +Strong public schools and healthcare

Cons

  • -Property tax 1.86%, second highest in the country
  • -Median home $425,800; rents above $1,500
  • -Heating costs run high; utilities parity 133.7 against a US level of 98.4
  • -Limited big-city amenities outside the Boston commuter belt

Rank #9

Connecticut

103.6

overall index

Best for: NYC and Boston commuters with high salaries

Housing rents117.0high
Goods97.3average
Utilities146.5very high
Other services102.7average

Median home

$395,100

Average 2BR rent

$1,520

Median household income

$83,771

Tax snapshot

Income: 2-6.99%
Property: 1.63%
Sales: 6.35%

What $80,000 buys here

$80,000 in Connecticut has the same purchasing power as $82,880 at the national average.

Primary cost driver: Wealthy commuter towns inflate housing and property tax

Pros

  • +Median income $83,771
  • +Excellent healthcare and education in Fairfield County
  • +Coastal access plus quick rail to NYC
  • +Diverse industries: insurance, finance, biotech

Cons

  • -Property tax 1.63%, top 5 in the country
  • -Heating and electricity run high; utilities parity 146.5 against a US level of 98.4
  • -Income tax up to 6.99% with surcharges
  • -Pension liabilities have driven structural state-level fiscal pressure

Rank #10

Florida

103.4

overall index

Best for: No-income-tax relocators who can absorb the insurance premium

Housing rents122.1very high
Goods98.1average
Utilities90.1low
Other services101.3average

Median home

$398,500

Average 2BR rent

$1,620

Median household income

$63,062

Tax snapshot

Income: 0%
Property: 0.80%
Sales: 6.00%

What $80,000 buys here

$80,000 in Florida has the same purchasing power as $82,720 at the national average.

Primary cost driver: Housing rents at 122.1 against a US level of 100.6, plus a homeowners insurance market the parities do not measure

Pros

  • +No state income tax and no estate or inheritance tax
  • +Utilities parity 90.1, below the US level of 98.4
  • +Deep Medicare Advantage market and year-round mild winters
  • +Goods parity 98.1, close to the US level of 99.6

Cons

  • -Median home $398,500; 2BR rent $1,620
  • -Homeowners insurance premiums re-priced to hurricane risk after 2022 and now among the highest in the country
  • -Median household income $63,062, below the national median, so wages do not offset the price level
  • -Medicaid not expanded; uninsured rate 12.7%

A city-level note

State averages mask huge intra-state variation.

A state parity is a population-weighted average. California reads high mostly because of the Bay Area and Los Angeles, and its inland counties pull the figure back down; New York's average is carried by the New York City metro rather than by Buffalo or Rochester. This page does not put a number on any of that, because BEA publishes parities for states and for metro areas and nothing in between, and the figures this page used to print at city and county level had no source behind them.

If you are considering a move into one of these states, look up the metro area rather than the state. BEA publishes metro-area price parities in its own table, alongside the state table used here.

Run a state-to-state comparison →

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Cheapest States

The other end of the spectrum.

Compare Two States

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Tax Burden

What COLI doesn't include.

Salary Purchasing Power

What your salary actually buys.

Frequently Asked

Most expensive states, answered

What is the most expensive state to live in?
California, with an all-items price parity of 110.7 against a US benchmark of 100. Its housing rents parity is 154.3 and its utilities parity 158.9, against US levels of 100.6 and 98.4. The median home is $785,300. The gap to the cheapest state, Arkansas at 86.9, is a factor of 1.27.
Why are Northeast states so expensive?
Constrained housing supply, high property taxes, and expensive heating in long winters. New Jersey, New York, Massachusetts, New Hampshire, Connecticut all sit in this top 10. Utilities are the clearest signature: each of them prices utilities above the US level of 98.4. Wages are also higher, which partly offsets the cost for high earners.
Is California really that expensive?
On a state-average basis it is the dearest state in the country, at 110.7. Housing rents (154.3) and utilities (158.9) are the components carrying it; goods (106.1) and other services (102.6) sit much closer to the national level. The state figure is an average across markets that differ a great deal, and BEA publishes metro-area parities separately for that reason.
Do higher wages make up for higher costs in expensive states?
Sometimes. Massachusetts, Maryland, New Jersey, Washington and California all have median household incomes well above the US median. For high earners in tech, finance, biotech, or law, the income premium can more than offset the price level. For median earners and below, the maths usually doesn't work; the income-adjusted table above is the quickest way to see which side of the line a state falls on.
Does the state figure apply to every part of the state?
No. A state parity is an average across the whole state, and states with one dominant metro and a large rural remainder are the least representative. BEA publishes a separate metro-area price parity series covering every US metropolitan statistical area. If you are weighing a specific city rather than a state, that is the series to read, and it is where the intra-state spread actually shows up.

Reader questions

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