How cost of living works
A cost of living index measures how expensive it is to live in one place compared to another. The national average is set at 100. This calculator uses the Bureau of Economic Analysis's regional price parities, the official measure, where 110 means prices 10% above the U.S. level. A city comparison works by dividing one area's parity by the other's to calculate the salary equivalent:
Equivalent Salary = Current Salary × (City 2 Index ÷ City 1 Index)
Example: A $75,000 salary in Houston (98.6) would need to be $87,915 in San Francisco (115.6) for the same purchasing power: $75,000 × (115.613 ÷ 98.629) = $87,915.
Top 10 most expensive US cities
The most expensive cities are driven primarily by housing costs. On BEA's 2024 figures San Francisco leads, 16% above the national price level (cost of living NYC is 112.6):
| City | Overall | Rents |
|---|---|---|
| San Francisco, CA | 115.6 | 194.7 |
| Miami, FL | 114.2 | 155.6 |
| Los Angeles, CA | 113.6 | 170.4 |
| New York, NY | 112.6 | 148.6 |
| San Diego, CA | 111.9 | 179.3 |
| Seattle, WA | 111.1 | 151.3 |
| Honolulu, HI | 111.0 | 135.5 |
| San Jose, CA | 110.4 | 211.9 |
| Washington, DC | 108.9 | 151.1 |
| Boston, MA | 108.3 | 148.4 |
Top 10 most affordable US cities
The most affordable metros have rents 13–44% below the national level. Wondering about the best state to live in 2026? Metros in TX, KS, OK lead the affordability rankings:
| City | Overall | Rents |
|---|---|---|
| McAllen, TX | 85.9 | 55.9 |
| Brownsville, TX | 86.0 | 57.7 |
| Wichita, KS | 88.9 | 66.2 |
| Tulsa, OK | 89.2 | 68.2 |
| Little Rock, AR | 89.4 | 68.3 |
| El Paso, TX | 89.9 | 71.2 |
| Oklahoma City, OK | 90.4 | 73.9 |
| Birmingham, AL | 91.6 | 71.9 |
| Memphis, TN | 92.2 | 79.8 |
| Kansas City, MO | 92.5 | 86.6 |
Cost of living by state
All 50 states and DC on BEA's 2024 Regional Price Parities, where the US average is 100. California is the most expensive at 110.7 and Arkansas the least at 86.9; 17 of the 51 sit above the national level. The last column is the salary that buys what $75,000 buys at the US average price level. State figures average cities and rural areas together, so a big metro can sit well above its state (pick the metro in the calculator for that).
| State | Overall | Rents | = $75,000 US |
|---|---|---|---|
| California | 110.7 | 154.3 | $83,040 |
| Hawaii | 110.0 | 125.3 | $82,463 |
| District of Columbia | 109.9 | 155.0 | $82,426 |
| New Jersey | 108.8 | 134.3 | $81,604 |
| New York | 107.9 | 122.2 | $80,941 |
| Washington | 107.0 | 126.0 | $80,260 |
| Massachusetts | 105.8 | 128.1 | $79,318 |
| Maryland | 105.0 | 121.1 | $78,719 |
| New Hampshire | 104.2 | 114.9 | $78,124 |
| Connecticut | 103.6 | 117.0 | $77,708 |
| Florida | 103.4 | 122.1 | $77,561 |
| Oregon | 103.4 | 108.6 | $77,521 |
| Colorado | 103.1 | 127.4 | $77,289 |
| Alaska | 102.4 | 93.8 | $76,769 |
| Rhode Island | 102.3 | 105.6 | $76,710 |
| Virginia | 101.1 | 106.8 | $75,828 |
| Arizona | 100.7 | 106.8 | $75,508 |
| Nevada | 100.0 | 114.1 | $74,984 |
| Illinois | 100.0 | 93.9 | $74,969 |
| Delaware | 99.8 | 102.0 | $74,856 |
| Utah | 98.9 | 107.8 | $74,148 |
| Minnesota | 98.6 | 91.3 | $73,966 |
| Vermont | 98.0 | 86.5 | $73,469 |
| Pennsylvania | 97.6 | 85.1 | $73,179 |
| Texas | 97.1 | 96.5 | $72,793 |
| Maine | 97.0 | 78.9 | $72,788 |
| Georgia | 96.3 | 88.7 | $72,220 |
| Michigan | 96.2 | 82.3 | $72,163 |
| Idaho | 95.5 | 90.0 | $71,621 |
| Montana | 94.6 | 84.6 | $70,984 |
| North Carolina | 94.3 | 81.4 | $70,745 |
| Wisconsin | 94.1 | 79.3 | $70,571 |
| South Carolina | 93.7 | 80.5 | $70,312 |
| Indiana | 93.3 | 73.9 | $69,997 |
| Ohio | 92.8 | 73.0 | $69,581 |
| Wyoming | 92.7 | 71.1 | $69,518 |
| New Mexico | 92.2 | 73.6 | $69,159 |
| Tennessee | 91.9 | 79.1 | $68,903 |
| Missouri | 90.8 | 69.9 | $68,113 |
| Kentucky | 90.2 | 64.3 | $67,619 |
| Nebraska | 90.1 | 75.2 | $67,577 |
| Kansas | 90.1 | 71.2 | $67,551 |
| West Virginia | 89.5 | 54.2 | $67,123 |
| North Dakota | 89.0 | 71.4 | $66,719 |
| Alabama | 88.8 | 61.8 | $66,617 |
| South Dakota | 88.6 | 67.6 | $66,440 |
| Louisiana | 88.2 | 63.1 | $66,155 |
| Oklahoma | 87.8 | 62.8 | $65,882 |
| Iowa | 87.8 | 65.3 | $65,822 |
| Mississippi | 87.0 | 56.5 | $65,215 |
| Arkansas | 86.9 | 58.2 | $65,203 |
How to compare cities
When evaluating a move, look beyond the overall index. Use the calculator above to compare cities across the four parts BEA measures:
- Housing (rents), typically the largest factor (30–40% of expenses) and the one that varies most between places.
- Goods, food, clothing, cars and other things you buy; they vary far less than rents.
- Utilities, electricity, gas, water. Hawaii and parts of California and the Northeast run highest.
- Other services, from medical care and car repairs to haircuts and dining out.
No free official index gives groceries, transportation or healthcare by city, so this calculator doesn't show them. Prices aren't taxes either: use our salary calculator to see net pay after taxes in each location.
FAQs
What is cost of living?
Cost of living is the amount of money needed to maintain a certain standard of living in a given location. It includes housing, food, utilities, transportation, healthcare, and taxes. A price index compares a place with the national average (100): the Bureau of Economic Analysis's regional price parities are the official one, where 110 means prices 10% above the U.S. level and 90 means 10% below.
What is the most expensive US city to live in?
Of the 50 metro areas here, the highest price levels in 2024 were San Francisco (115.6), Miami (114.2), Los Angeles (113.6), according to the Bureau of Economic Analysis. Rents drive the gap: San Jose's are 2.1 times the national level and San Francisco's 1.9 times. Metro figures average city centers with their suburbs, so a downtown can cost more.
What are the cheapest places to live in the US?
Among these 50 metros, the lowest 2024 price levels were McAllen (85.9), Brownsville (86.0), Wichita (88.9), Tulsa (89.2), Little Rock (89.4), about 11-14% below the national average. By state, Arkansas (86.9), Mississippi (87.0), Iowa (87.8) had the lowest overall price levels.
Does salary adjust for cost of living?
Not automatically. Many employers offer cost-of-living adjustments (COLA) when relocating employees, but the adjustment rarely covers the full difference. If you earn $75,000 in Houston (98.6) and move to San Francisco (115.6), you'd need about $87,915 for the same purchasing power, on BEA's 2024 price levels.
How does New York compare to Los Angeles?
On BEA's 2024 figures the two metro areas are close overall: New York 112.6, Los Angeles 113.6. Rents differ more: 148.6 against 170.4. A $100,000 salary in New York buys what about $100,891 buys in Los Angeles.
How does housing affect cost of living?
Housing is the single largest factor in cost of living differences between cities, typically accounting for 30–40% of total living expenses. BEA's rent parity shows the spread: San Jose 211.9 and San Francisco 194.7 against McAllen 55.9 and Brownsville 57.7. This is why remote workers often relocate to lower-cost areas.
What is the best state to live in 2026?
The 'best state to live in 2026' depends on your priorities. On price alone, BEA's 2024 parities put Arkansas (86.9), Mississippi (87.0), Iowa (87.8) lowest and California (110.7), Hawaii (110.0), District of Columbia (109.9) highest. For jobs and wages, California, New York, and Washington lead in median income; weigh taxes and pay alongside prices. Use this calculator to compare specific cities or states.
What is a cost of living index?
A cost of living index is a numerical score that compares the cost of goods and services in one location to a baseline (typically the US national average, set at 100). The Bureau of Economic Analysis's regional price parities, the free official measure, break the overall level into goods, housing (rents), utilities and other services. No free official index gives groceries, transportation or healthcare by city; private indices estimate those.
Do remote workers benefit from cost of living differences?
Yes. A remote worker earning a San Francisco salary ($150K) while living in Indianapolis (95.7 vs San Francisco's 115.6) gets about 21% more purchasing power, because each dollar stretches 115.6 ÷ 95.7 as far. Some companies adjust remote salaries by location, but many pay the same rate wherever employees live.
How do I negotiate a relocation salary?
Research the cost of living difference between your current and target city using this calculator. Present the equivalent salary needed to maintain your current standard of living. Ask for a relocation package that includes: moving expenses, temporary housing, cost-of-living adjustment to base salary, and a signing bonus. Most companies expect negotiation, prepare data showing the exact percentage difference.