The 10 Most Expensive States to Live in 2026

Why each state is expensive, what's driving the gap, 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

Rank	State	Index	Housing	Median Home	Avg 2BR Rent	Median Income
#1	Hawaii	193.3	318.6	$978,200	$2,350	$84,857
#2	Massachusetts	148.4	210.5	$598,700	$2,280	$89,645
#3	California	142.2	196.5	$785,300	$2,120	$84,907
#4	Alaska	127.0	128.3	$345,700	$1,330	$77,640
#5	New York	126.5	155.8	$435,800	$1,780	$74,314
#6	Maryland	118.2	140.5	$398,500	$1,620	$87,063
#7	New Jersey	115.2	128.5	$472,500	$1,720	$85,245
#8	Vermont	114.5	123.5	$378,500	$1,380	$65,792
#9	Oregon	113.1	132.5	$498,500	$1,520	$70,084
#10	Connecticut	112.8	113.0	$395,100	$1,520	$83,771

The wage offset

Higher costs, but also higher pay

Adjust the cost of living index by median household income. A score above 100 means the state costs more than wages can absorb on average. Below 100 means wages cover the gap.

State	COLI	Median Income	Income-adjusted index	Verdict
Hawaii	193.3	$84,857	170.8	Costs win
Massachusetts	148.4	$89,645	124.2	Costs win
California	142.2	$84,907	125.6	Costs win
Alaska	127.0	$77,640	122.7	Costs win
New York	126.5	$74,314	127.7	Costs win
Maryland	118.2	$87,063	101.8	Roughly balanced
New Jersey	115.2	$85,245	101.4	Roughly balanced
Vermont	114.5	$65,792	130.5	Costs win
Oregon	113.1	$70,084	121.0	Costs win
Connecticut	112.8	$83,771	101.0	Roughly balanced

Per-state breakdown

Each state in detail

Rank #1

Hawaii

193.3

overall index

Best for: Lifestyle premium, not financial return

Housing318.6very high

Groceries149.7very high

Healthcare112.6high

Utilities168.5very high

Transport136.3very high

Misc.124.5very high

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 $154,640 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 #2

Massachusetts

148.4

overall index

Best for: High-earning professionals and academics

Housing210.5very high

Groceries107.5high

Healthcare118.2high

Utilities138.5very high

Transport112.8high

Misc.117.2high

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 $118,720 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 #3

California

142.2

overall index

Best for: Tech, entertainment, and biotech workers

Housing196.5very high

Groceries105.1high

Healthcare107.8high

Utilities113.2high

Transport118.9high

Misc.111.5high

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 $113,760 at the national average.

Primary cost driver: Housing - the housing sub-index is 196.5, nearly double the US average

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 #4

Alaska

127.0

overall index

Housing128.3very high

Groceries129.5very high

Healthcare155.7very high

Utilities169.8very high

Transport112.5high

Misc.109.8high

Median home

$345,700

Average 2BR rent

$1,330

Median household income

$77,640

Tax snapshot

Income: 0%
Property: 1.04%
Sales: 0.00%

What $80,000 buys here

$80,000 in Alaska has the same purchasing power as $101,600 at the national average.

Pros

Cons

Rank #5

New York

126.5

overall index

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

Housing155.8very high

Groceries106.2high

Healthcare110.5high

Utilities125.5very high

Transport114.2high

Misc.113.5high

Median home

$435,800

Average 2BR rent

$1,780

Median household income

$74,314

Tax snapshot

Income: 4-10.9%
Property: 1.40%
Sales: 4.00%

What $80,000 buys here

$80,000 in New York has the same purchasing power as $101,200 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 #6

Maryland

118.2

overall index

Best for: Federal government and biotech workers

Housing140.5very high

Groceries104.5average

Healthcare107.2high

Utilities114.8high

Transport109.5high

Misc.107.8high

Median home

$398,500

Average 2BR rent

$1,620

Median household income

$87,063

Tax snapshot

Income: 2-5.75%
Property: 0.99%
Sales: 6.00%

What $80,000 buys here

$80,000 in Maryland has the same purchasing power as $94,560 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 5.75% plus county piggyback taxes
-Property tax 0.99% effective
-Traffic congestion in the DC corridor is severe

Rank #7

New Jersey

115.2

overall index

Best for: NYC commuters wanting more space

Housing128.5very high

Groceries104.8average

Healthcare109.5high

Utilities115.2high

Transport111.5high

Misc.110.2high

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 $92,160 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 #8

Vermont

114.5

overall index

Best for: Outdoor enthusiasts who can absorb the costs

Housing123.5very high

Groceries105.8high

Healthcare118.5high

Utilities125.8very high

Transport105.2high

Misc.109.8high

Median home

$378,500

Average 2BR rent

$1,380

Median household income

$65,792

Tax snapshot

Income: 3.35-8.75%
Property: 1.73%
Sales: 6.00%

What $80,000 buys here

$80,000 in Vermont has the same purchasing power as $91,600 at the national average.

Primary cost driver: Small population, high state services, expensive heating

Pros

+World-class outdoor recreation, low crime, strong communities
+Universal healthcare access; uninsured rate just 3.2%
+Small, walkable cities and towns
+Strong tourism and ski economy

Cons

-Property tax 1.73%, second highest in the country
-Income tax up to 8.75%, taxes Social Security in many cases
-Heating costs are amongst the highest nationally
-Limited high-wage job market outside Burlington

Rank #9

Oregon

113.1

overall index

Housing132.5very high

Groceries101.5average

Healthcare102.8average

Utilities88.5low

Transport112.5high

Misc.105.8high

Median home

$498,500

Average 2BR rent

$1,520

Median household income

$70,084

Tax snapshot

Income: 4.75-9.9%
Property: 0.87%
Sales: 0.00%

What $80,000 buys here

$80,000 in Oregon has the same purchasing power as $90,480 at the national average.

Pros

Cons

Rank #10

Connecticut

112.8

overall index

Best for: NYC and Boston commuters with high salaries

Housing113.0high

Groceries106.1high

Healthcare115.8high

Utilities131.5very high

Transport107.2high

Misc.108.5high

Median home

$395,100

Average 2BR rent

$1,520

Median household income

$83,771

Tax snapshot

Income: 3-6.99%
Property: 1.63%
Sales: 6.35%

What $80,000 buys here

$80,000 in Connecticut has the same purchasing power as $90,240 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 costs are extreme; utilities sub-index at 131.5
-Income tax up to 6.99% with surcharges
-Pension liabilities have driven structural state-level fiscal pressure

A city-level note

State averages mask huge intra-state variation.

California is "expensive" mostly because of San Francisco, San Jose, and Los Angeles. Fresno, Bakersfield, and inland Sacramento are within 5-10% of the US average. New York's state average is dragged up by NYC; Buffalo and Rochester are genuinely affordable.

If you're considering a move into one of these states, look at the metro-level COLI for the specific area, not the state average. The Council for Community and Economic Research publishes metro-level data quarterly.

Run a state-to-state comparison →

Cheapest States

The other end of the spectrum.

Compare Two States

Run your own numbers.

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?

Hawaii at index 193.3. The median home approaches $978,200, electricity is over 42 cents per kWh, and groceries cost roughly 50% more than the national average because of import dependency.

Why are Northeast states so expensive?

A combination of constrained housing supply (zoning, geography), high property taxes, expensive heating in long winters, and elevated state services. Massachusetts, New Jersey, Connecticut, and New York all sit in the top 10 for this reason. Wages are also higher, which partly offsets the cost for high earners.

Is California really that expensive?

On a state-average basis, yes - housing pushes the index to 142.2. But the state masks dramatic city-level variation. San Francisco and Silicon Valley are amongst the most expensive metros in the world. Inland California (Fresno, Bakersfield, Sacramento exurbs) is much closer to the national average.

Do higher wages make up for higher costs in expensive states?

Sometimes. Massachusetts, Maryland, New Jersey, 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 cost of living. For median earners and below, the maths usually doesn't work.

What's the cheapest big metro in an expensive state?

Pittsburgh in Pennsylvania, Buffalo and Rochester in New York, Springfield in Massachusetts, Sacramento in California. State averages hide significant intra-state variation. If you're flexible on metro, you can capture most of the income upside while avoiding the worst of the housing premium.