The 10 Cheapest States to Live in America (2026)

Ranked by BEA Regional Price Parities 2024, the government's measure of how prices differ across states. US average = 100.

1

Arkansas

86.9

13% below national average · Up to 3.9% · Sales tax: 6.5%

2

Mississippi

87.0

13% below national average · 5% flat · Sales tax: 7.0%

3

Iowa

87.8

12% below national average · 3.8% flat · Sales tax: 6.0%

4

Oklahoma

87.8

12% below national average · Up to 4.75% · Sales tax: 4.5%

5

Louisiana

88.2

12% below national average · 3% flat · Sales tax: 4.45%

6

South Dakota

88.6

11% below national average · No state income tax · Sales tax: 4.5%

7

Alabama

88.8

11% below national average · Up to 5% · Sales tax: 4.0%

8

North Dakota

89.0

11% below national average · Up to 2.5% · Sales tax: 5.0%

9

West Virginia

89.5

10% below national average · Up to 5.12% · Sales tax: 6.0%

10

Kansas

90.1

10% below national average · Up to 5.7% · Sales tax: 6.5%

Source: Bureau of Economic Analysis Regional Price Parities 2024. Tax rates from Tax Foundation.