The cost of living looks very different depending on where you live. In some states, sky-high prices for housing, groceries, and services can also strain those with higher incomes. These trends often tie to booming job markets and tight housing supplies. This ranking breaks down the 10 most expensive states right now and learn about the key factors driving their rising costs. Read on to find out which one takes the crown.
Hawaii
Topping the list at an index of 186.9, life in Hawai is expensive because everything travels so far. Housing is the biggest villain that forces typical Honolulu home prices past the $850,000 mark. Factor in America’s highest energy bills at $213 per month—and the cost of isolation becomes clear.
Massachusetts
It’s a tough stretch for paychecks in the Bay State, even with an impressive median income of $90,000. A cost-of-living index of 147.8 reflects steep expenses across housing, utilities, and services. In the Boston area, median home prices reach $900,000, while utility bills run 45% higher than the national average. This adds significant pressure to everyday budgets.
California
California’s 147.2 index puts heavy financial weight on residents, ranking it third nationally. Look at Orange County, where typical homes trade hands for $1.2 million. Beyond real estate, the state is battling a housing shortage exceeding 860,000 units. Consequently, you see debt creeping up, like the $22,000 in credit card balances in places such as Santa Clarita.
Alaska
Life up north presents economic problems that are simply different and pushes the index to 121.5 while ranking fifth nationwide. Everything from groceries to basic household items costs more because the state relies on vast, expensive shipping networks. Residents also face brutal winter weather, which predictably drives up already-high energy costs.
New York
An index of 150.3 places the Empire State among the top five most expensive places to call home—costs sit nearly 50% above the national average. The staggering expense of Manhattan real estate and services creates a ripple effect statewide. Although the median income hovers around $84,000, people often feel like they’re running just to stay put financially.
Maryland
A magnet for high-earning professionals, particularly those connected to the Washington, D.C., job market, Maryland sees a unique economic surge. Well-paid professionals continue to move into premium areas, such as Bethesda. As a result, housing prices climb and the state’s cost-of-living index reaches 116.3. However, a high gross income helps offset some of the expenses.
New Jersey
Proximity to New York City is a major financial driver that inflates regional real estate values and drives up the 2025 cost-of-living index to 116.0. Residents face compounding financial stress from high property taxes and utility rates. The numbers also show that a single adult needs about $56,000 a year just to cover basic living expenses.
Vermont
Heating bills during the long and harsh winters create an instant budget struggle in Vermont. They contribute to the state’s 114.4 cost-of-living index, the tenth highest. This year-round pressure fuels escalating household debt. In fact, credit card debt has experienced the second-steepest increase nationally and now stands at $5,311.53, despite median incomes ranging between $74,000 and $85,000.
Washington
The tech boom in Seattle acts like a massive economic engine that pulls in droves of high-salaried workers and sends shockwaves through the housing market. This tech-fueled demand makes Washington the 11th most expensive state for living costs. One piece of good news is that residents get a small break thanks to the absence of a state income tax.
New Hampshire
The lack of state sales tax or income tax on wages initially looks like a great deal for residents. However, sky-high housing costs quickly expose the state’s true financial burden. Scenic areas such as Portsmouth and Nashua command steep prices. Add in serious healthcare expenses, and the financial reality is that New Hampshire remains one of America’s priciest states.
