The Most Expensive States to Live In
A data-driven editorial ranking of the ten priciest US states, drawn from the BEA Regional Price Parities, MERIC's Cost of Living Index, and the latest Census ACS estimates. Updated for 2026.
- Cost index
- 186.9
- Median home
- $845,000
- 1BR rent
- $2,150/mo
- Top income tax
- 11%
The Top 10, Ranked
- 1
Hawaii (HI)
Hawaii is the most expensive state in the US, with a cost-of-living index nearly double the national average. Geographic isolation, limited buildable land, and import-dependent supply chains push prices on housing, groceries, and energy to record highs.
Read the full Hawaii profile →Why it's expensive- ·Nearly all consumer goods are shipped or flown in, adding 20–40% to retail prices.
- ·Strict land-use rules and conservation zoning limit new housing supply.
- ·Electricity costs roughly 3x the mainland US average due to imported oil generation.
By the numbers- Cost index
- 186.9
- Housing index
- 312.7
- Median home
- $845K
- 1BR rent
- $2,150
- Top income tax
- 11%
- Sales tax
- 4%
- Avg. gas
- $4.72
- Median income
- $95K
- 2
Massachusetts (MA)
Massachusetts ranks second on the back of Greater Boston's housing market, elite-school tuition pressure, and high healthcare costs. Wages are among the nation's highest, but housing alone runs more than 2x the national benchmark.
Read the full Massachusetts profile →Why it's expensive- ·Boston metro housing demand from biotech, finance, and 50+ universities.
- ·Restrictive zoning across suburban towns limits new multifamily supply.
- ·4% surtax on income above $1M (the 'Millionaires Tax').
By the numbers- Cost index
- 148.4
- Housing index
- 220.9
- Median home
- $624K
- 1BR rent
- $2,400
- Top income tax
- 9%
- Sales tax
- 6.25%
- Avg. gas
- $3.34
- Median income
- $97K
- 3
California (CA)
California combines the nation's highest top marginal income tax, the most expensive average gasoline, and a chronic housing shortage. Coastal metros from San Diego to the Bay Area push the statewide average to nearly 1.5x the US norm.
Read the full California profile →Why it's expensive- ·CEQA review and local zoning slow new housing approvals to a crawl.
- ·Cap-and-trade fuel rules add roughly $0.50–$0.80 per gallon at the pump.
- ·Top-bracket state income tax of 13.3%, plus a 1.1% SDI on all wages.
By the numbers- Cost index
- 145
- Housing index
- 215.6
- Median home
- $786K
- 1BR rent
- $2,100
- Top income tax
- 13.3%
- Sales tax
- 7.25%
- Avg. gas
- $4.81
- Median income
- $92K
- 4
New York (NY)
New York's statewide cost is dominated by NYC and its commuter belt. Outside the five boroughs, upstate New York is surprisingly affordable, but transit, taxes, and rent in the metro area drive the average sharply upward.
Read the full New York profile →Why it's expensive- ·NYC rent-stabilization quirks and limited new construction outside Brooklyn/Queens.
- ·City + state combined top income tax exceeds 14.7% for high earners in NYC.
- ·Highest average property tax bill in the nation (Westchester, Nassau).
By the numbers- Cost index
- 138.1
- Housing index
- 187.2
- Median home
- $475K
- 1BR rent
- $2,950
- Top income tax
- 10.9%
- Sales tax
- 4%
- Avg. gas
- $3.46
- Median income
- $81K
- 5
Alaska (AK)
Alaska has no state income tax and even pays residents an annual Permanent Fund dividend, but distance and climate make groceries, energy, and especially healthcare some of the priciest in the country.
Read the full Alaska profile →Why it's expensive- ·Healthcare index of ~162 — the highest in the US, due to limited provider supply.
- ·Most goods arrive by barge or air; rural villages pay 2–4x Anchorage prices.
- ·Heating-fuel demand from October to April.
By the numbers- Cost index
- 127.1
- Housing index
- 132.1
- Median home
- $372K
- 1BR rent
- $1,250
- Top income tax
- 0%
- Sales tax
- 0%
- Avg. gas
- $3.78
- Median income
- $89K
- 6
Maryland (MD)
Maryland's high cost is concentrated in DC-suburb counties — Montgomery, Howard, Prince George's — where federal-worker wages and tight housing inventories elevate prices well above the rest of the Mid-Atlantic.
Read the full Maryland profile →Why it's expensive- ·DC-area housing demand spilling into Bethesda, Silver Spring, Rockville.
- ·Local ('piggyback') income taxes on top of state tax (up to 3.2%).
- ·High auto-insurance premiums in Baltimore and PG County.
By the numbers- Cost index
- 124
- Housing index
- 154
- Median home
- $425K
- 1BR rent
- $1,750
- Top income tax
- 5.75%
- Sales tax
- 6%
- Avg. gas
- $3.42
- Median income
- $98K
- 7
Oregon (OR)
Oregon has no sales tax, but a 9.9% top income-tax bracket and a tight Portland-area housing market push it into the top 10. Wildfire-driven insurance and energy costs in eastern counties add further pressure.
Read the full Oregon profile →Why it's expensive- ·Portland's urban growth boundary constrains greenfield development.
- ·Top marginal income tax of 9.9% kicks in relatively early ($125K single).
- ·Wildfire-driven home insurance hikes since 2020.
By the numbers- Cost index
- 119.6
- Housing index
- 148.7
- Median home
- $488K
- 1BR rent
- $1,500
- Top income tax
- 9.9%
- Sales tax
- 0%
- Avg. gas
- $3.95
- Median income
- $76K
- 8
Connecticut (CT)
Connecticut's Fairfield County corridor — Greenwich, Stamford, Westport — anchors statewide costs. Property taxes and energy prices are well above the national norm even outside the wealthy southwestern belt.
Read the full Connecticut profile →Why it's expensive- ·Fairfield County's NYC-commuter premium on housing.
- ·Highest residential electricity rates in the continental US (Eversource/UI).
- ·Effective property-tax rate of ~1.79% — fifth-highest nationally.
By the numbers- Cost index
- 116.5
- Housing index
- 134.3
- Median home
- $410K
- 1BR rent
- $1,750
- Top income tax
- 6.99%
- Sales tax
- 6.35%
- Avg. gas
- $3.41
- Median income
- $90K
- 9
New Hampshire (NH)
No income tax, no sales tax — but New Hampshire makes up for it in property tax. Boston-commuter demand from Salem to Portsmouth keeps housing prices firmly above the national average.
Read the full New Hampshire profile →Why it's expensive- ·Effective property-tax rate of ~1.93% — third-highest in the US.
- ·Spillover housing demand from Massachusetts cross-border buyers.
- ·Limited rental inventory in seacoast and Lakes Region towns.
By the numbers- Cost index
- 114.1
- Housing index
- 130.1
- Median home
- $480K
- 1BR rent
- $1,700
- Top income tax
- 0%
- Sales tax
- 0%
- Avg. gas
- $3.20
- Median income
- $91K
- 10
Washington (WA)
Washington has no state income tax, but Seattle's tech-driven housing market and high gasoline prices (cap-and-invest program) keep statewide costs well above average. A 7% capital gains tax above $262K applies to high earners.
Read the full Washington profile →Why it's expensive- ·Seattle/Bellevue tech salaries inflate Puget Sound housing costs.
- ·Cap-and-invest carbon program adds ~$0.40/gal at the pump.
- ·Combined sales tax in Seattle reaches 10.35%.
By the numbers- Cost index
- 113
- Housing index
- 152.1
- Median home
- $605K
- 1BR rent
- $1,850
- Top income tax
- 0%
- Sales tax
- 6.5%
- Avg. gas
- $4.34
- Median income
- $90K
Side-by-side comparison
All ten states across the metrics that matter.
| # | State | Cost idx | Housing idx | Median home | 1BR rent | Top income tax | Sales tax |
|---|---|---|---|---|---|---|---|
| 1 | Hawaii | 186.9 | 312.7 | $845,000 | $2,150 | 11% | 4% |
| 2 | Massachusetts | 148.4 | 220.9 | $624,000 | $2,400 | 9% | 6.25% |
| 3 | California | 145 | 215.6 | $786,000 | $2,100 | 13.3% | 7.25% |
| 4 | New York | 138.1 | 187.2 | $475,000 | $2,950 | 10.9% | 4% |
| 5 | Alaska | 127.1 | 132.1 | $372,000 | $1,250 | 0% | 0% |
| 6 | Maryland | 124 | 154 | $425,000 | $1,750 | 5.75% | 6% |
| 7 | Oregon | 119.6 | 148.7 | $488,000 | $1,500 | 9.9% | 0% |
| 8 | Connecticut | 116.5 | 134.3 | $410,000 | $1,750 | 6.99% | 6.35% |
| 9 | New Hampshire | 114.1 | 130.1 | $480,000 | $1,700 | 0% | 0% |
| 10 | Washington | 113 | 152.1 | $605,000 | $1,850 | 0% | 6.5% |
Frequently asked
- What is the most expensive state to live in?
- Hawaii is the most expensive state in the US in 2026, with a cost-of-living index of roughly 187 — nearly double the national average — driven by housing, energy, and shipped-in groceries.
- How is 'cost of living' actually measured?
- Most rankings combine the BEA's Regional Price Parities with composite indexes like MERIC, which weight housing (~30%), groceries, utilities, transportation, healthcare, and miscellaneous goods. A score of 100 equals the US average.
- Are states without an income tax actually cheaper?
- Not necessarily. Washington, New Hampshire, and Alaska have no state income tax but make the top 10 due to housing, property tax, or geographic premiums. Tax savings are often offset by higher sales or property taxes.
- What's the cheapest part of an expensive state?
- Almost every expensive state has a more affordable interior or secondary metro — Hilo in Hawaii, Bakersfield in California, Buffalo in New York, Spokane in Washington. We list these on each state page.
- How often is this ranking updated?
- Annually, when the BEA publishes its updated Regional Price Parities (typically December) and MERIC publishes its quarterly composite. Last refreshed for 2026.