The most expensive states to live in reflect a stark financial reality for many Americans. With prices surging nearly 20% since the pandemic, where $100 of goods now costs $120, the inflation continues to outpace salaries for the majority of consumers. This escalating cost of living, from groceries to housing, places a significant strain on households. As a Bloomberg report highlights, this intense period of inflation has compressed decades of price increases into just a few years. Where one lives has never played a more critical role in financial well-being. Here are the 20 highest cost-of-living states in 2025 for you to know.
Top 10 Most Expensive States to Live in USA
| Rank | State | Cost of Living Index | Median Income | Median Income Ranking |
|---|---|---|---|---|
| 1 | Hawaii | 182.1 | $97,360 | 7th |
| 2 | Massachusetts | 145.9 | $106,500 | 2nd |
| 3 | California | 139.1 | $89,190 | 14th |
| 4 | New York | 126.4 | $81,600 | 24th |
| 5 | Alaska | 119.1 | $98,190 | 6th |
| 6 | Maryland | 117.8 | $102,000 | 3rd |
| 7 | Washington | 117.3 | $93,440 | 10th |
| 8 | Vermont | 117.1 | $85,190 | 19th |
| 9 | Oregon | 116.6 | $88,740 | 16th |
| 10 | New Hampshire | 115.1 | $98,780 | 5th |
20 Most Expensive States to Live in
1. Hawaii
Cost of Living Index: 182.1
Hawaii is one of the most expensive states to live in because its location is so isolated in the Pacific. The location makes shipping goods very expensive in this state, and drives up the prices for basic necessities like vegetables and fruits. For example, a dozen eggs costs about $3.98, and a head of lettuce is around $2.37 in Honolulu. Another huge cost is Housing, which is a huge financial burden, with the typical household spending over half their income (53%) on it. On top of that, utility bills in Hawaii are extremely high, with an average monthly cost of $529.02, and electricity prices are nearly triple the national average. .
2. Massachusetts
Cost of Living Index: 145.9
Massachusetts has a sky-high cost of living—in fact, it’s the second most expensive state in the U.S. A big reason why is housing; median rent prices often top $1,800 each month. For families, things get even tougher. Around Boston, a household of three can easily need close to $10,000 per month just for basics, and childcare alone usually makes up more than $2,200 of that. So it’s no surprise that a single person would need to make about $85,000 a year to get by comfortably there.
3. California
Cost of Living Index: 139.1
California is the third-highest cost-of-living states, with living costs running about 38.5% above the national average. The beautiful weather and scenery in California continue to attract new residents. About renting in cities like Los Angeles or San Francisco, the cost of a one-bedroom apartment usually costs $2,000-$3,000 per month. Besides, California ranks 14th nationally with a median annual income of $89.9K. Besides, the expenses such as gas, energy, and daily groceries are also significantly higher, making the cost of living in California about 40% above the national average.
4. New York
Cost of Living Index: 126.4
New York ranks among the top 10 most expensive states in the USA. Reports show that a family of four typically needs over $6,100 each month to cover basic expenses—not including rent. Costs like housing, transportation, utilities, and healthcare are all well above the national average. Even though living expenses are the 4th highest in the country, the median household income is only 24th, at around $81.6K. On top of that, the average credit card debt here is $6,313, which is the 17th highest nationwide.
5. Alaska
Cost of Living Index: 119.1
When you wonder what state is the most expensive to live in, living in Alaska means facing the high cost of living in fifth place. A single person needs to make at least $71,570 a year just to cover the basics, while a family of four would require over $121,295. High energy bills and everyday costs are major drivers, and the electricity can be five times more expensive than in states like Oklahoma, and a simple loaf of bread averages $4.68 in Anchorage.
6. Maryland
Cost of Living Index: 117.8
Maryland ranks as one of the costliest states in the USA, with high housing costs averaging around $2,871 per square meter for apartments. The state also has the highest driving costs nationwide, including annual car insurance averaging approximately $1,191 and maintenance fees of around $399. Additionally, the income required to be considered upper-middle class in Maryland is over $158,125, the highest threshold among all states.
7. Washington
Cost of Living Index: 117.3
Washington ranks among the top 10 most expensive states in the U.S., with an average annual living cost of $47,231. The Seattle-Bellevue area is costly, requiring you to have an hourly wage of $50.87 to afford a typical two-bedroom apartment. Housing drives much of this expense, with average rents for such units reaching $2,025 per month. Despite high costs, the state’s residents also enjoy the highest disposable income nationwide, averaging $30,894 after essential expenses.
8. Vermont
Cost of Living Index: 117.1
Vermont is now one of the highest cost of living states: its 2025 cost-of-living index is 113.7, so everyday bills run about 14 % higher than the U.S. norm. A single person lays out roughly $2,640 a month; rent plus utilities eat $1,765 of that, and the typical house costs around $375k. Winter heat can hit $600 a month, health insurance adds another $1,020, and the full year’s tab for one resident tops $31k. Even with an average after-tax paycheck of $4,440, those earnings cover only 1.7 months of expenses, making Vermont a real budget-buster.
9. Oregon
Cost of Living Index: 116.6
Oregon is one of the states with the highest cost of living, with an index of 116.6 in 2025, and is about 24 % above the national average. Average monthly rent for a 690-sq-ft unit is $1,462, while the typical home value tops $512,000; in Portland, prices leap to roughly $723,700. Everyday items cost more too: a loaf of bread runs 12 % higher than in Portland, Maine, and a dozen eggs averaged $3.57 last year. One in three Oregon households now spends over 30 % of income on housing, and MIT estimates each working adult in a four-person family must earn $31.48 an hour to cover basic costs—nearly $8 above the Alabama benchmark.
10. New Hampshire
Cost of Living Index: 115.1
In 2025, New Hampshire ranks as the most expensive state to live in the United States. Typical utility bills run about $687 a month, roughly 30% higher than the national median, with steep electricity rates—around 23.5¢ per kWh. Housing adds another layer of cost in New Hampshire: the average rent for a one-bedroom is about $1,423, and the median home price is close to $504,000. Altogether, monthly household expenses in one of the highest cost-of-living states are an average $2,196, which comes out to about 7% above the U.S. norm.
11. New Jersey
Cost of Living Index: 114.2
New Jersey is one of America’s most expensive states, with a typical apartment renting for about $2,400–$2,500 per month. The expected utilities in this state run roughly $500–$650 each month, and in many places, the electricity bills as an big expense alone can top $300. People in New Jersey add steep local property taxes and commuting costs to NYC, and overall expenses rise quickly. It all adds up fast, so plan a cushion for rent, bills, transit and groceries.
12. Connecticut
Cost of Living Index: 112.1
Connecticut is the answer for what state is the most expensive to live in, and its overall cost of living runs about 13% above the U.S. average, and housing is roughly 19% more expensive than the national norm. You can feel that in everyday prices: average apartment rent sits around $2,100 a month, and typical single-family home values are in the roughly $460,000–$490,000 range depending on the source. Those higher housing and utility costs have pressured homeownership in recent quarters, even though Connecticut still scores well on several quality-of-life measures.
13. Rhode Island
Cost of Living Index: 110.4
Rhode Island is one of the highest cost of living states, and the average living cost index is roughly 10% above the national average. The housing cost in Rhode Island is the biggest factor that makes people have a higher standard of living, with median single-family homes in the mid-$400K, and rents usually run $1,800–$2,300 a month. That pushes everyday costs in this most expensive state, like groceries and utilities, above the U.S. norm, especially in places such as Providence and Newport.
14. Maine
Cost of Living Index: 109.2
Maine is a bit pricier than the U.S. average, as one of the costliest states in the USA. Its cost-of-living index was about 109.2 in Q2 2025, roughly 13% higher than the national baseline. Housing is the main reason: the statewide median sale price sat around $409k–$419k in mid-2025, while Portland’s average home value is nearer $572k. Rents vary by city — one-bedrooms in Portland usually go for about $1,370–$1,700, and statewide rent estimates generally fall between $1,600 and $2,000 depending on location.
15. Arizona
Cost of Living Index: 107.9
Arizona is now among the states with the highest cost of living; its cost-of-living index is about 1–12% above the national baseline. Housing drives most of that gap: Phoenix-area home values sit around $410k–$420k on average (median sale ≈ $420k). Rent isn’t cheap either in this most expensive state — a typical one-bedroom in Phoenix rents for roughly $1,100–$1,300/month, so day-to-day living adds up fast.
16. Colorado
Cost of Living Index: 105.6
Colorado ranks among the most expensive states to live in the USA. Housing is the largest expense, and the median home prices typically fall between $550,000 and $600,000, while the average rent of a one-bedroom apartment usually costs from $1,600 to $2,200 per month. Although everyday expenses such as utilities are close to the national average in the United States, the high demand in Denver and Boulder continues to drive up the overall cost of living, making Colorado one of the states with the highest cost of living.
17. Utah
Cost of Living Index: 103.4
Utah is considered one of the highest cost of living states, and buying a home is costly in this state, as the median price is now around $520k–$540k. Renters also feel the squeeze, with one-bedroom apartments in Salt Lake City often cost you at $1,500–$1,800 per month. While the daily costs like groceries and utilities are fairly typical, housing prices are the main reason living in Utah has become less affordable.
18. Montana
Cost of Living Index: 103.1
Montana ranks among America’s most expensive states. The average rent of a 1-bedroom apartment usually costs between $900 and $1,200 per month. Also, a typical transport ride that costs $100 in other states would be about 9% more in Montana. Housing and groceries in Montana also tend to be pricier than the national average. On the other hand, utilities are relatively affordable, running around 7.5% below the U.S. average.
19. Virginia
Cost of Living Index: 102.9
Virginia is relatively expensive compared to other U.S. states, with a cost-of-living index of around 103, which is about 3% higher than the national average. Renting a one-bedroom apartment in cities like Arlington or Alexandria typically costs $1,200 to $1,600 per month. On the other hand, the daily expenses, such as groceries and transportation, are moderate, though utility bills can be somewhat higher.
20. Delaware
Cost of Living Index: 102.1
In Delaware, one of the costliest states in the USA, the overall cost is slightly higher than the U.S. average. Even though the housing is relatively affordable, the everyday expenses such as groceries, transportation, and healthcare tend to be more expensive in Delaware, while utilities are fairly average. Moreover, the average credit card debt ranks 16th highest in the country.
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FAQ
The top 10 most expensive states to live in consistently feature Hawaii, California, Massachusetts, Maryland, and New York. Other states like Alaska, Washington, New Jersey, Colorado, and Vermont also commonly make the list, primarily due to their high costs of housing, utilities, and everyday goods.
According to various 2025 reports, Mississippi, Oklahoma, and Arkansas are frequently named among the cheapest states to live in, with many sources highlighting their low housing costs as a major reason.
Hawaii continues to have the highest-priced housing market in the United States, with a median home value of approximately $977,538 as of the second quarter of 2025. California and Massachusetts follow behind, though still significantly less expensive.
When it comes to the cost of living, Manhattan tops the list as the mos
California is the costliest state in the U.S., with a regional price parity (RPP) of 113, compared to the national average of 100.
The “best” state for you really comes down to what you value most in terms of finances, but many people find states across the Midwest and South—like North Dakota, Iowa, Tennessee, and Wyoming—offer strong affordability thanks to lower living costs and favorable tax rates.
Hawaii’s remote location makes it the most expensive U.S. state to live in, as shipping goods to the islands drives up the cost of everything from housing to everyday essentials.
