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- Average cost of living index: 96.2
--- Groceries: 99.0
--- Health care: 95.1
--- Housing: 84.1
--- Transportation: 104.2
--- Utilities: 108.4
--- Other: 100.5

Pennsylvania closes out the list at #25, one spot lower than before, as utilities and transportation — already its weak points — got relatively more expensive. Health care remains comparatively affordable, and miscellaneous expenses, like a haircut, a movie ticket, or a yoga class, are still reasonable by national standards, per C2ER.

- Average cost of living index: 95.1
--- Groceries: 99.2
--- Health care: 103.0
--- Housing: 84.7
--- Transportation: 97.0
--- Utilities: 102.6
--- Other: 98.9

Illinois falls three spots to #24. Utilities are now a clear weak point, ranking among the most expensive in the nation at #37 — a cost driven in large part by Chicago, where the overall cost of living continues to run well above the rest of the state, according to .

- Average cost of living index: 94.1
--- Groceries: 97.6
--- Health care: 104.1
--- Housing: 88.2
--- Transportation: 100.1
--- Utilities: 85.4
--- Other: 96.9

South Dakota falls eight spots to #23. Utilities remain a strong category (#8 nationally) and the state still has , but transportation and health care costs have both moved into the pricier half of the national rankings, dragging down its overall position.

- Average cost of living index: 93.9
--- Groceries: 100.1
--- Health care: 88.2
--- Housing: 85.7
--- Transportation: 98.5
--- Utilities: 98.0
--- Other: 97.0

Michigan is this update's steepest decliner, falling 13 spots to #22 as other states' housing and grocery costs improved faster. Health care remains a genuine bright spot — Michigan is still among the five cheapest states in the country for health care costs — but the exceptional housing value that once defined the state's ranking has narrowed considerably relative to its peers.

- Average cost of living index: 93.7
--- Groceries: 98.9
--- Health care: 97.0
--- Housing: 86.5
--- Transportation: 87.7
--- Utilities: 92.4
--- Other: 99.3

Wyoming improves four spots to #21. Transportation is now its best category (#5 nationally), while housing — once a strength — has drifted closer to the middle of the pack. Wyoming still has , per the Tax Foundation, a distinction it shares with South Dakota, and its abundant coal production continues to keep utility costs in check.

- Average cost of living index: 93.7
--- Groceries: 98.9
--- Health care: 96.5
--- Housing: 86.3
--- Transportation: 92.7
--- Utilities: 100.9
--- Other: 96.0

Ohio holds at #20, one of only a few states on this list whose position didn't change. Its cost profile has become more balanced rather than housing-driven: housing has slipped to the middle of the pack nationally, while utilities have become a bigger relative drag. A persistent gap between rents and wages remains a real issue for renters even as the state's overall index stays below the national average.

- Average cost of living index: 93.4
--- Groceries: 98.8
--- Health care: 111.5
--- Housing: 79.5
--- Transportation: 93.6
--- Utilities: 95.4
--- Other: 100.0

Minnesota climbs four spots to #19, helped by housing that remains one of the more affordable in the country (#15 nationally). But health care is a serious outlier: Minnesota's health care costs now rank among the priciest of any state, at #45 out of 52 — a gap wide enough to keep the state from climbing higher on this list despite its other strengths.

- Average cost of living index: 92.5
--- Groceries: 101.4
--- Health care: 92.4
--- Housing: 78.1
--- Transportation: 95.8
--- Utilities: 87.8
--- Other: 101.6

Kentucky drops one spot to #18. It remains one of the cheapest states in the country for utilities (#10 nationally) — Kentuckians still benefit from some of the , per the EIA — but grocery and miscellaneous costs have both moved above the national average, pulling down its overall standing.

- Average cost of living index: 91.9
--- Groceries: 98.6
--- Health care: 97.6
--- Housing: 79.8
--- Transportation: 94.6
--- Utilities: 95.1
--- Other: 97.3

South Carolina is new to this list, replacing Montana, which fell out of the top 25 as its housing and overall costs climbed. South Carolina's affordability doesn't come from any single standout category — it's reliably below-average across the board, with no category ranking worse than #21 nationally. The state also doesn't tax Social Security benefits and has no estate tax, which has helped make it a popular landing spot for retirees. Housing costs outside Charleston remain the biggest driver of its overall affordability.

- Average cost of living index: 91.3
--- Groceries: 99.5
--- Health care: 105.6
--- Housing: 78.1
--- Transportation: 87.4
--- Utilities: 92.1
--- Other: 97.9

Nebraska moves up two spots to #16. Transportation is its best category by far (#4 nationally), a benefit of being the only state that . Health care is the clear weak spot, ranking in the bottom third of all states.

- Average cost of living index: 91.1
--- Groceries: 95.4
--- Health care: 91.6
--- Housing: 83.3
--- Transportation: 94.4
--- Utilities: 82.3
--- Other: 97.3

Louisiana slips one spot to #15, though utilities remain a genuine strength at #5 nationally — the Bayou State is still the nation's third-biggest , per the EIA, with the second-highest oil refinery capacity in the country. Groceries are the eighth-cheapest nationally, though New Orleans continues to run noticeably above the state average.

- Average cost of living index: 90.7
--- Groceries: 95.9
--- Health care: 96.8
--- Housing: 77.7
--- Transportation: 90.9
--- Utilities: 104.0
--- Other: 95.6

Texas climbs two spots to #14. The state still has , and its housing remains affordable for a state its size — only California has more residents. Utilities are the outlier, ranking among the more expensive in the nation, largely a function of high summer cooling demand.

- Average cost of living index: 90.7
--- Groceries: 94.1
--- Health care: 107.7
--- Housing: 77.2
--- Transportation: 96.7
--- Utilities: 86.4
--- Other: 98.3

North Dakota also holds exactly at #13. Groceries (#4 nationally), housing, and utilities are all standout categories — Grand Forks has previously ranked as the single most affordable place for groceries nationwide, per C2ER — but health care is the state's clear weak point, ranking among the priciest in the country at #38.

- Average cost of living index: 90.6
--- Groceries: 96.9
--- Health care: 99.6
--- Housing: 77.6
--- Transportation: 96.3
--- Utilities: 98.6
--- Other: 94.3

Georgia is one of only a few states on this list whose rank didn't move at all — it holds at #12. Miscellaneous costs and housing remain its best categories, while utilities and health care have both slipped toward the middle of the national pack.

- Average cost of living index: 89.9
--- Groceries: 96.0
--- Health care: 101.9
--- Housing: 83.2
--- Transportation: 89.5
--- Utilities: 80.0
--- Other: 94.0

New Mexico is this update's biggest mover, jumping eight spots to #11. Utility costs, already among the lowest in the nation, improved even further to #2 nationally — the state remains a major oil, natural gas, and wind power producer, according to the . Health care is the one category holding it back, ranking in the bottom third nationally.

- Average cost of living index: 89.1
--- Groceries: 93.4
--- Health care: 85.8
--- Housing: 77.2
--- Transportation: 88.8
--- Utilities: 98.3
--- Other: 95.7

Arkansas falls four spots to #10 as several other states posted bigger gains. It's still the second-cheapest state in the country for groceries and a top-five state for health care costs, but utilities have become a real drag, ranking among the priciest nationally at #30.

- Average cost of living index: 88.9
--- Groceries: 95.8
--- Health care: 88.7
--- Housing: 80.3
--- Transportation: 87.2
--- Utilities: 84.5
--- Other: 95.0

Tennessee moves up two spots to #9. Transportation (#3 nationally) and health care (#6) are its strongest categories, with utilities not far behind at #7. The Volunteer State still has , per the Tax Foundation.

- Average cost of living index: 88.6
--- Groceries: 94.7
--- Health care: 98.0
--- Housing: 76.1
--- Transportation: 86.5
--- Utilities: 92.4
--- Other: 95.2

Missouri holds essentially steady at #8. Transportation costs remain among the cheapest anywhere — #2 nationally, just behind Oklahoma — and groceries are the fifth-cheapest in the country. Smaller metros like Springfield and Joplin continue to pull the state average down, even as larger cities like St. Louis and Kansas City sit closer to the national norm.

- Average cost of living index: 88.6
--- Groceries: 96.6
--- Health care: 94.3
--- Housing: 75.6
--- Transportation: 93.7
--- Utilities: 88.6
--- Other: 94.5

Iowa holds steady near the top of the list at #7, with the sixth-cheapest housing in the country its biggest advantage. Job opportunities in advanced manufacturing, bioscience, finance, and insurance continue to support one of the more balanced cost profiles on this list — no single category ranks worse than #18 nationally.

- Average cost of living index: 88.3
--- Groceries: 97.9
--- Health care: 91.5
--- Housing: 73.0
--- Transportation: 95.7
--- Utilities: 95.2
--- Other: 93.5

Indiana climbs four spots to #6, with housing (#5 nationally) and miscellaneous costs (#6) doing the heavy lifting. The Hoosier State's flat income tax rate dropped to 2.95% for 2026, with another cut to 2.9% penciled in for 2027, according to the .

- Average cost of living index: 87.9
--- Groceries: 96.2
--- Health care: 89.5
--- Housing: 71.3
--- Transportation: 99.5
--- Utilities: 90.4
--- Other: 94.9

West Virginia no longer holds the #1 spot it once claimed — Oklahoma overtook it more than a year ago, and West Virginia now sits at #5 as Oklahoma, Alabama, Mississippi, and Kansas have all posted bigger overall gains since. Housing remains West Virginia's calling card — still the fourth-cheapest in the nation, thanks in part to a — but transportation costs have climbed to among the priciest in the country (#29), which is what knocked the state out of the top spot.

- Average cost of living index: 87.6
--- Groceries: 95.3
--- Health care: 90.6
--- Housing: 77.5
--- Transportation: 88.0
--- Utilities: 97.4
--- Other: 90.1

Kansas slips one spot to #4. Its standout categories are miscellaneous costs (#2 nationally) and transportation (#6), while below-average housing costs (#10) round out the picture. Utilities are the outlier, ranking among the priciest in the country at #27 — a reminder that even the most affordable states tend to have at least one expensive line item.

- Average cost of living index: 86.2
--- Groceries: 93.2
--- Health care: 85.1
--- Housing: 71.0
--- Transportation: 89.8
--- Utilities: 94.4
--- Other: 93.7

Mississippi holds near the top of the list, and its health care picture has flipped: where it once ranked among the pricier states for health care, it's now the second-cheapest in the country, alongside the nation's cheapest groceries and third-cheapest housing. That combination — rather than any single standout category — is what pushes its overall index down to 86.2, more than 13% below the U.S. average.

- Average cost of living index: 85.0
--- Groceries: 95.0
--- Health care: 85.6
--- Housing: 67.7
--- Transportation: 88.8
--- Utilities: 96.9
--- Other: 91.8

Alabama jumps three spots to #2, powered by the nation's second-cheapest housing and third-cheapest health care. Groceries and miscellaneous costs are also both in the top six nationally. Utilities remain Alabama's weak spot: the state has some of the , according to AAA, but volatile keep overall utility costs above the national average.

- Average cost of living index: 83.5
--- Groceries: 93.5
--- Health care: 98.1
--- Housing: 66.9
--- Transportation: 83.7
--- Utilities: 94.5
--- Other: 88.8

Oklahoma holds the #1 spot — a position it's actually held on and off since early 2025, when it first overtook West Virginia, trading the top spot with Mississippi in the quarters since. It is the only state on this list that ranks #1 nationally in three separate categories — housing, transportation, and miscellaneous costs — and its overall index is now more than 16% below the national average. The state remains one of the nation's top natural gas and crude oil producers, with a large share of its electricity also coming from wind power, according to the .

Additional writing by Cu Fleshman and Mike Taylor. Story editing by Jaimie Etkin and Mike Taylor. Copy editing by Meg Shields. Photo selection by Ania Antecka.