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Top 10 U.S States With Lowest Cost of Living

These are the least expensive U.S States to call home.

As home prices and overall cost of living continue to soar across the United States, most Americans find themselves, more so than in the last ten years, on the lookout for locations with more favorable economic conditions. Wages have remained stagnant across most industries, leaving even working folks unable to make ends meet.


Whether you are able to cover your monthly expenses plus have enough for savings can sometimes come down to which State you live in and pay taxes to. The cost of Living in the United States varies from State to State.


While a construction worker may find it hard to cover their living expenses in New York or Philadelphia, one with a similar occupation can make a pretty decent living in Indiana or South Carolina due to a difference in overall cost of living.



According to GOBankingRates's ranking of all 50 States in terms of cost of living, these are the least expensive U.S States:


10. Kentucky

Kentucky is the tenth-cheapest state in the country. It’s cheaper to live there across all categories covered except for miscellaneous expenses — but even those are just 0.6 percent more expensive than the national average.


Housing: 19.5 percent less expensive

Transportation: 2.6 percent less expensive

Groceries: 11.1 percent less expensive



9. Texas

The overall cost of living in Texas is 8.8 percent lower than the national average, which puts the state at 9th State to live in cheapest. Housing leads the way at 15.2 percent lower. Groceries, meanwhile, cost 9.8 percent less, and miscellaneous costs are 7 percent lower.


Oh yeah, and there’s no state income tax.




8. Kansas

Kansas residents spend about 9.8 percent less than the average American to get by. Although life is cheaper across the board, housing costs are a full 22.8 percent lower than average.


Housing: 22.6 percent less expensive

Transportation: 7.5 percent less expensive

Groceries: 6.4 percent less expensive



7. Tennessee

Residents of the Volunteer State see a cost of living that is 10.2 percent lower than the national average.


Housing: 22.5 percent less expensive

Transportation: 10.1 percent less expensive

Groceries: 7.3 percent less expensive



6. Idaho

Idaho boasts a fairly cheap cost of living that’s 7.8 percent lower than the national average. In fact, everything is less expensive than average across the board with the exception of transportation, which is 8.5 percent above the country’s mean price.


Housing: 77.8 percent less expensive

Transportation: 6.1 percent more expensive

Groceries: 14.6 percent less expensive




5. Oklahoma

In Oklahoma, the general cost of living is 10.8 percent lower than the national average.


Housing: 23.3 percent less expensive

Transportation: 11.9 percent less expensive

Groceries: 7 percent less expensive



4. Arkansas

You can expect to pay 12.2 percent less there to maintain your lifestyle than the average American. The biggest savings are in housing, where the state’s average is 23 percent lower than the rest of the country.


Little Rock — the state’s capital — is one U.S. city where you can live comfortably on less than $50,000 annually.



3. Michigan

Michiganders pay an average of 10.3 percent less than the average American for common living expenses.


Housing: 22.9 percent less expensive

Transportation: 2.4 percent less expensive

Groceries: 10.4 percent less expensive



2. Indiana

The Hoosier state comes in at number two on our list of cheapest U.S States to live in.


Housing: 24.2 percent less expensive

Transportation: 8.4 percent less expensive

Groceries: 7.6 percent less expensive




1. Mississippi

The number one least expensive U.S State to live in, in terms of overall cost of living is Mississippi. With a cost of living that is nearly 15 percent lower than the national average, Mississippi is the cheapest place to live in the U.S. for the second year in a row. Healthcare costs about 9 percent less than the national average, groceries are nearly 6 percent less and housing is a full 29.3 percent cheaper.


Housing: 31.6 percent less expensive

Transportation: 6.9 percent less expensive

Groceries: 5.4 percent less expensive

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