Mississippi, Arkansas, Oklahoma, Kansas, Alabama, and West Virginia consistently rank as the cheapest US states. Here's the full picture.
The cheapest US states by cost of living
By composite cost-of-living index (MERIC, US=100):
- Mississippi: ~84
- Oklahoma: ~85
- Kansas: ~87
- Alabama: ~87
- Arkansas: ~88
- Tennessee: ~89
- Missouri: ~89
- West Virginia: ~89
- Iowa: ~89
- Indiana: ~90
The cheapest states are concentrated in the South and lower Midwest.
But cheapest by COL isn't always cheapest by total cost
Some 'low COL' states have higher property taxes (TX, NH), higher insurance (FL, LA), or higher sales tax (TN, WA).
True cheapest combo: low home prices + low property tax + low income tax + low sales tax + cheap utilities. The best combo is in MS, AR, OK, KY (all-around low).
Cheapest doesn't always mean best value
Cheap states tend to have weaker job markets, longer healthcare drives, and slower-growing wages.
If you're retired or remote-working, you keep your income while paying lower expenses — the best scenario for these states.
If you depend on local jobs, factor in wage levels: cheaper states often have proportionally lower local wages.