Are you looking for a budget-friendly place to live in America? Well, we have 6 of the cheapest US states where your paycheck goes the furthest. The cost of living varies from state to state. Since the pandemic started, Americans could choose to relocate to whatever place is suitable for them. Of course, money is always the biggest issue so it might be good to take into consideration some of the places where it’s the most inexpensive to live in.
Across the USA, the cost of living index ranges from a low 83.3 % (17% cheaper than average) to a high of 193,3 (93% more expensive than average). This study takes a lot into consideration, but most of the key aspects include food and groceries, housing, utilities, healthcare and transportation, either public or private.
Here are 12 places where living is going to be economical:
1. Mississippi
- Cost of Living Index: 83.3
- Typical Home Value: $158,000
- Median Household Income: $45,800
It’s understandable that it might not be the most glamorous or amazing place in the USA but it’s one of the cheapest places to live in and it also has its benefits. In fact, it’s actually one of the most overlooked and underrated out of all states.
The living wage in Mississippi is $48,537 and the personal necessities are the lowest in the country. And did we mention the nature opportunities, along with the friendly personalities? All in all, the state of Mississippi has everything a retiree can hope for to settle into a more care-free lifestyle!
30 thoughts on “Top 12 Cheapest US States to Live in”
I’m sure there is a big difference within each state. For example, Georgia was listed, but certainly life is more expensive in Atlanta than it is in any number of smaller cities. Could you offer a list of inexpensive CITIES or Regions within each state. I am particularly interested in Kentucky or Tennessee. Thank you.
Wendell!! Thank You so much for your comment!! You are definitely right about ATL!! Atlanta is expensive as hell!! I know several people who live in ATL. The other error they stated was there are only 56, 183 people living there… Clearly they had to mean, 156,000,000 Million people living there!!!
In fact, I would think that ATL is almost over populated like New York?!?
But again, Thank You for your comment.
Ronnie M.
Although Tennessee does not have a state tax their sales tax is one of the highest in the nation. Traffic in a lot of the cities is really horrible. I lived in this state most of my life and was thrilled to leave it. If I ever had to move back, I would try to find the smallest city. Houses are being torn down and multiple residences are being built in their place. School systems are terrible. DON’T DO IT!!!!!
Think it would be important to consider how good the medical care is in the states you’ve mentioned.
Most of these states are not friendly for African Americans. And many have very restrictive laws regarding abortion and teaching the real history of the United States. One has to be able to feel safe leaving their inexpensive, less taxed home.
As well as which cites in those states where best medical care are located.
Good question, Gordon. I think almost all of these states have not signed on to the Affordable Care Act. Therefore, indigent and some middle-class residents cannot afford medical care.
This is a fantastic report and will be very useful for many.
My question is: Where are the 10 cheapest states to live in if you are a 100% disabled veteran. A couple of things important for us are VA medical care, year-round activities, and state benefits for the 100% disabled – such as no state property taxes, (like Florida and Texas, Minnesota and a few others), no cost hunting and fishing licenses. Just saying. It would be nice if someone would provide a cost of living index taking into consideration the property tax difference along.
Thank you, Jim
It was interesting to see this list. As it turns out we moved to Georgia in January 2022. Nice to see it made it on your list. It’s a great place to live. I cannot think of anything I’m missing in California.
You did the right thing. California with its sanctuary status and an idiot for a governor is no place for a law abiding citizen.
I lived in Memphis for 15 years. I was so happy to see it in my rear view mirror. Memphis is a violent city. Per capita is one of the 4 most violent cities in America. Memphis is ore violent per capita than Los Angeles, New York City, Chicago, Miami, Newark, & Trenton. I have spent time in every major city & a large number of small towns in Tennessee. If you are not a white person, Tennessee can be a very challenging state to live in.
You’ve got that right. I was stationed in Tennessee for over 3 years and it was very challenging to live there as a black female.
I lived in Tennessee for 15 years before I moved back home to Delaware. I miss it every day .
I live in Kentucky. The cost of living in surrounding small towns is far better than Louisville, where many people have bars on windows and doors. But you trade off any sense of culture. None of my neighbors can spell or carry on a conversation. I have to pretend I understand what people are saying.
I don’t understand how Alabama can be one of the cheapest States to live in with no increase in minimum wage because the State couldn’t afford it, but mainly because of the sales tax, even on groceries! It’s 10 to 11 percent in most if not all of the State.
Alabama supports a regressive tax system. That is the reason why sales taxes are high. Also, this GOP-led state also is firmly against minimum wage increases.
Great point. We love North Carolina because the medical care/hospitals are ubiquitously recognized as being fantastic. (we live in the third largest city, Greensboro). However, not one of the cheapest states. Many of the States that were mentioned have very high crime rates. Hard pass on those.
I live in Atlanta and it is certainly no longer a “safe” city !
Nashville Tn, property prices are 3rd highest in the country. Surrounding towns have gone up too. Mainly result of incoming Californians.
Memphis has #1 crime rate in U S.
My taxes have more than doubled.
I am moving to Alabamaj
The cheapest is not always the best. Many times is the worst choice in anything you choose. Those States that you have mentioned are the poorest States in the nation and consequently the way of living is not comfortable I do not live in any of the States that you mention but I am happy with my selection when I retired 14 years ago.
Interesting that you listed Kansas as #4, with pro sports as an attraction (other than a NASCAR speedway, I don’t know of any major league franchises in Kansas), and the accompanying photo is actually a shot of Missouri.
Mississipi is the Poorest State in the United States!! So much HATRED TOO!!
I live in California and I love it. No need to be rich just be smart with your money and live in paradise.
You mean California didn’t make the list? Shocking!
Average home cost….the high $500,000.00’s, and that’s considered cheap, even for bad areas with high crime rates. Most average homes are close to a million $$$.
I saw Ms as #1, but none of the rest. I mostly saw lots of ads for 10 minutes while trying to see the rest of the story.
I have lived in Nebraska for eight years now. It is wonderfully inexpensive. Nice place to live, too. I don’t see how it could have not made this list.
I live in PA which has great medical facilities, no state tax for those over 65 and it has a homestead program for homeowners. I live in Northampton county and there is so much to do that is free or very inexpensive, you won’t have time to do everything. We also have many universities that have multiple events and services available to the public, Moravian, Lehigh, DeSales , Lafayette and more.
Not sure who proof read this writer, but their surely not doing their job.
So – there are 56,183 people living in Georgia.
Wow – talk about lots of open space!
Here’s another great fact:
“If you plan on retiring in Georgia, you should know that this is one of the safest cities to live in.”
Is there no checking of facts at all anymore?
I think the point of this article should be the cheapest places to retire if you have a couple mil in your 401k. Been in GA for 53 years and it’s more expensive now that the entertainment industry is here and all the dregs it brought with it.