Cost of Living in the United States

The cost of living in the United States varies dramatically by location, from expensive coastal cities like New York and San Francisco to more affordable areas in the Midwest and South. This guide covers major expense categories and regional differences.

Regional Cost Differences

Cost of living varies significantly by region:

• Highest Cost: New York City, San Francisco Bay Area, Boston, Los Angeles, Washington DC
• Moderate Cost: Chicago, Denver, Seattle, Portland, Miami, Atlanta
• Lowest Cost: Most of the Midwest (Ohio, Indiana, Kansas), South (Mississippi, Alabama, Arkansas), and Southwest (Texas, New Mexico, Arizona excluding major cities)

Housing Costs

Housing is the largest expense for most households:

• Median Home Price: Approximately $400,000 nationally (varies widely)
• Rent: Average 1-bedroom apartment ranges from $800 (low-cost areas) to $3,500+ (high-cost cities)
• Property Tax: 0.5-2.5% of home value annually
• Homeowners Insurance: $500-$2,000+ annually depending on location

Utilities

• Electricity: Average $0.12-0.30/kWh (varies by state)
• Natural Gas: Varies by region and season
• Water/Sewer: $50-$150/month
• Internet: $50-$100/month for broadband
• Cell Phone: $30-$100/month per line

Transportation

• Gasoline: $3.00-$5.00/gallon (varies by state)
• Car Insurance: $1,000-$2,500/year average
• Public Transit: $50-$130/month in major cities
• Vehicle Registration: $50-$300/year

Healthcare

• Health Insurance: Employer-sponsored average $7,000 single/$22,000 family annually (employer pays ~70%)
• ACA Marketplace: Varies by income (subsidies available)
• Medicare: Part B premium $174.70/month (standard, 2026, income-adjusted)
• Out-of-Pocket Max: Typically $5,000-$9,000/year individual
• Prescription Drugs: Varies widely with insurance coverage

Food

• Groceries: $300-$600/month per person
• Dining Out: $15-$25 casual meal, $50-$100+ fine dining
• Groceries are sales tax exempt in many states

Tax Burden by State

Combined state and local tax burden varies significantly:

• No Income Tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
• Highest Income Tax: California (13.3% top rate), Hawaii (11%), New York (10.9%)
• High Property Tax: New Jersey, Illinois, Texas, New Hampshire
• High Sales Tax: California, Louisiana, Tennessee, Washington