Methodology
A cost-of-living ranking is only as good as its inputs. Here's exactly how we built ours.
The composite score
Each state's overall cost-of-living index is calibrated to a US national average of 100. A score of 130 means the state is roughly 30% more expensive than the national norm. We blend two authoritative composites:
- BEA Regional Price Parities (RPP) — the federal gold standard for cross-state price comparisons.
- MERIC Cost of Living Index — quarterly composite covering grocery, housing, utilities, transportation, healthcare, and miscellaneous.
Weights
| Category | Weight |
|---|---|
| Housing | 29% |
| Groceries | 13% |
| Utilities | 10% |
| Transportation | 12% |
| Healthcare | 8% |
| Miscellaneous goods & services | 28% |
Income & tax data
Median household income comes from the US Census Bureau's American Community Survey (5-year estimates). State income-tax brackets and sales-tax rates are drawn from the Tax Foundation's annual State Tax Data report. We list the top marginal income-tax rate, not the effective rate.
Housing & rent
Median single-family home prices reflect Zillow's ZHVI (typical home value, all homes). Median 1-bedroom rent is sourced from Apartment List's National Rent Report and cross-checked with Census ACS gross-rent estimates.
Update cadence
Annual full refresh after the BEA's December RPP release. Sub-indexes (rent, gas) are updated quarterly. Each state page lists "Updated" timestamps when figures shift materially.
What we don't claim
A state-level ranking is a useful overview, but it hides huge intra-state variation. Manhattan and Buffalo share a state, not a budget. Always check metro- or county-level data before making a relocation decision — every state page lists its priciest and most-affordable metros.