Updated 28 March 2026
Salary Purchasing Power by State
A $75,000 salary is not the same everywhere. In Mississippi, it buys what $89,286 buys nationally. In Hawaii, it buys what $40,541 buys. The difference is entirely driven by cost of living. Here is what your salary is actually worth in each state.
What $75,000 Is Worth in 20 States
The "equivalent" column shows how much purchasing power a $75,000 salary gives you in each state, expressed in national-average dollars. A number above $75,000 means your money goes further. Below means it goes less far.
| State | Index | Median Income | $75K Feels Like |
|---|---|---|---|
| Mississippi | 84 | $48,610 | $89,286 |
| Oklahoma | 86 | $55,800 | $87,209 |
| Kansas | 87 | $62,300 | $86,207 |
| Alabama | 87 | $52,000 | $86,207 |
| West Virginia | 88 | $46,700 | $85,227 |
| Arkansas | 88 | $50,500 | $85,227 |
| Missouri | 89 | $57,400 | $84,270 |
| Georgia | 89 | $61,200 | $84,270 |
| Indiana | 90 | $58,200 | $83,333 |
| Tennessee | 90 | $59,700 | $83,333 |
| Texas | 93 | $67,300 | $80,645 |
| Ohio | 91 | $58,100 | $82,418 |
| Iowa | 90 | $61,800 | $83,333 |
| Florida | 102 | $61,800 | $73,529 |
| Colorado | 122 | $80,200 | $61,475 |
| Washington | 135 | $82,400 | $55,556 |
| New York | 138 | $75,200 | $54,348 |
| California | 142 | $84,100 | $52,817 |
| Massachusetts | 148 | $89,600 | $50,676 |
| Hawaii | 185 | $84,900 | $40,541 |
Real Scenarios
Abstract numbers only tell part of the story. Here are three real-world scenarios showing how cost of living impacts actual people with different incomes and life situations.
Remote tech worker earning $150,000
A software engineer at a company with location-independent pay, currently living in San Francisco. Considering relocation.
California (SF)
Index: 180
$0 (baseline)
Housing alone: $3,500/mo for 1BR apartment
Texas (Austin)
Index: 103
+$2,300/mo
Plus no state income tax saves another $800/mo
Tennessee (Nashville)
Index: 98
+$2,800/mo
No state income tax. Housing is $1,800/mo for same quality
Kansas (Wichita)
Index: 87
+$4,200/mo
Housing is $1,000/mo. Total savings: $50K+/year
Teacher earning $55,000
A public school teacher looking for the state where their salary goes furthest. Teaching salaries are set by state/district, so this comparison uses a fixed $55K across all locations.
Mississippi
Index: 84
+$870/mo vs average
Teacher shortage here means signing bonuses and fast hiring
Ohio
Index: 91
+$450/mo vs average
Strong teacher unions. Good pension system.
Colorado
Index: 122
-$825/mo vs average
Beautiful state but $55K is below the poverty line in Denver
California
Index: 142
-$1,355/mo vs average
CA teacher pay is higher ($65-85K) but still does not cover the gap
Retiree on $40,000/year fixed income
A retiree living on Social Security plus a small pension. Fixed income means the cost of living directly determines quality of life.
West Virginia
Index: 88
+$455/mo purchasing power
No tax on Social Security. Lowest housing costs in the US.
Tennessee
Index: 90
+$370/mo purchasing power
No state income tax. No tax on Social Security.
Florida
Index: 102
-$65/mo purchasing power
No state income tax but property insurance is expensive.
Massachusetts
Index: 148
-$1,081/mo purchasing power
Excellent healthcare but $40K barely covers basics in Boston area.
Beyond the Index: What the Numbers Miss
Cost of living indexes do not capture everything. They miss: state and local tax burden (a major factor), quality of public schools, commute time and transportation costs, climate and weather preferences, proximity to family, cultural amenities and dining options, and career advancement opportunities. A state that is 20% cheaper but has 30% fewer job opportunities in your field may not be a good move. Always factor in income potential alongside cost potential.