Your Monthly Expenses Could Be Double (Or Half) Depending on Where You Live in America

Did you catch this startling reality? A resident in Hawaii might spend nearly five times more on common monthly expenses than someone in West Virginia. Meanwhile, Alaskans fork over 83% more for utilities alone compared to Louisianans, and Californians pay 43% higher healthcare costs than Mississippians.

The gap is real—and it’s massive.

Why Do Common Monthly Expenses Vary So Wildly Across States?

The answer lies in a handful of factors working in tandem. Housing demand in coastal and metropolitan areas pushes prices through the roof. Supply chain costs for delivering goods to remote locations (think Alaska and Hawaii) inflate everyday expenses. Local labor markets, regional taxes, and infrastructure development all play a role. The result? Your paycheck stretches vastly different distances depending on your zip code.

The Cost-of-Living Index: What You’re Actually Paying

To understand this better, the GOBankingRates study employed a national baseline: 100 represents the U.S. median. States scoring below 100 offer cheaper living; those above pay a premium.

Here’s the breakdown across the nation:

The Premium States (Where Your Wallet Takes a Hit)

Hawaii leads the charge with a cost-of-living index of 180.3—meaning everyday expenses are nearly double the national average.

• Average monthly expenditure: $6,402
• Average annual expenditure: $76,828

District of Columbia follows at 146.8, with monthly common expenses averaging $5,039 annually totaling $60,473.

Massachusetts sits at 146.5, averaging $4,983 monthly ($59,797 yearly).

California ranks at 138.5, with residents spending an average of $4,766 monthly and $57,195 annually.

New York clocks in at 125.9, averaging $4,233 monthly and $50,801 yearly.

Alaska reaches 125.2—that utility shock we mentioned earlier—with $4,157 monthly and $49,887 annually.

The Middle Ground (Moderate Living Costs)

States like Connecticut (112.8), New Jersey (113.9), Maryland (116.5), and Washington (116.0) sit in the upper-middle tier, with monthly expenses ranging from $3,664 to $3,829.

Colorado, Maine, and Montana hover around the 103-110 range, offering more breathing room with monthly expenses between $3,289 and $3,533.

Florida nearly hits the national average at 100.7, keeping monthly costs right at $3,255.

The Budget-Friendly States (Stretch Your Dollar)

Mississippi leads affordability with a cost-of-living index of just 86.3.

• Average monthly expenditure: $2,711
• Average annual expenditure: $32,529

Oklahoma follows at 86.2 ($2,714 monthly), while Kansas comes in at 87.1 ($2,753 monthly).

West Virginia registers 87.7, Arkansas sits at 89.0, and Alabama reaches 88.3—all offering monthly expenses under $2,800 on average.

Louisiana, Indiana, and Georgia remain comfortably affordable, with indexes hovering around 90-91 and monthly costs between $2,848 and $2,891.

The Full State-by-State Reality

Your common monthly expenses depend heavily on geography. Whether you’re budgeting in:

• High-cost corridor: Hawaii, Massachusetts, California, D.C., New York, Alaska
• Upper-middle range: Maryland, Washington, Oregon, Vermont, Connecticut, New Jersey
• Moderate zone: Colorado, Maine, Minnesota, North Carolina, Pennsylvania
• Budget-conscious states: Mississippi, Oklahoma, Kansas, Louisiana, Arkansas, Alabama

The data tells the story. Someone earning $50,000 annually lives very differently in Honolulu versus Baton Rouge.

What This Means for Your Wallet

If you’re considering a move, these numbers matter. A job paying $60,000 in Mississippi stretches further than the same salary in Massachusetts. Conversely, coastal living demands a significantly higher income to maintain the same lifestyle as middle-America residents.

The methodology behind these figures draws from GOBankingRates’ analysis of cost-of-living indexes compiled by the Missouri Economic and Research Information Center, combined with consumer expenditure data from the Bureau of Labor Statistics. These common monthly expenses exclude housing and represent the most current data as of June 24, 2024.

Whether you’re relocating for work, retirement, or a fresh start, understanding your state’s cost-of-living index and projected monthly expenses should be the first step in your planning—because $2,700 monthly isn’t the same everywhere.