As things get more expensive in many parts of the U.S., some states are still pretty cheap to live in. They have lower costs for houses, reasonable taxes, and things you need are easy to get without spending a lot.
Top 10 Cheapest States to Live in the US 2025
If you're thinking about moving and want your money to go further, here are the top 10 cheapest states:
Arkansas
Source: arkansas.com
- Living here costs 4% less than most of the country.
- Houses cost much less (22% lower).
- House prices are some of the lowest in the U.S.
- Cheap homes, low bills for things like electricity, and food doesn't cost much. Cities like Conway and Jonesboro are especially cheap.
Mississippi
Source: Britannica
- Living here can cost 10-17% less (it depends on the city).
- Houses cost way less (26% lower).
- The average price for a house is $151,000.
- It's often named the cheapest state, with the lowest costs for homes and gas. You also pay less tax on your property, and if you're retired, you might not pay any state tax on your income. Big cities like Tupelo and Gulfport are very affordable.
Alabama
Source: CNBC
- Living here costs 12% less.
- Houses are much cheaper in many places (30% lower).
- The average price for a house is between $179,400 and $216,600.
- Cheap homes, low taxes on property (only 0.39%), and cheaper healthcare and ways to get around. The way the state taxes things is good for people who own homes.
West Virginia
Source: Britannica
- Living here is one of the cheapest in the country.
- Homes don't cost much, and everyday things are affordable. So, it's a good choice if you don't want to spend a lot.
South Dakota
Source: Britannica
- Living here costs quite a bit less than most of the country.
- Homes are cheap, and you don't pay state income tax. This makes it good for families and people who are retired.
Oklahoma
Source: The Oklahoman
- Living here costs 14% less.
- On average, people spend about $38,650 a year to live here.
- The average price for a house is between $170,500 and $183,733.
- Some of the cheapest homes in the country, with affordable cities and programs to help you financially. Rent for a two-bedroom apartment is around $840 a month.
Kansas
Source: Woodside Village
- Living here costs 12% less.
- The average price for a house is $189,300.
- Affordable homes, food doesn't cost much, and there are good job opportunities in tech, medicine, and factories.
Kentucky
Source: Britannica
- Living here is one of the cheapest in the country.
- Homes and bills for things like electricity are low, which makes it affordable for families and single people.
Missouri
Source: National Geographic Kids
- Living here costs less than most of the country.
- Homes are affordable, and taxes aren't too high, so overall living costs stay low.
Tennessee
Source: Britannica
- Living here costs 11% less.
- The average price for a house is $232,100.
- You don't have to pay state income tax, homes are affordable, and there are fun cities like Nashville and Memphis. It's great if you like city life and being outdoors.
Top 10 Richest Countries in the World 2025
Why Are These States So Affordable?
The main reason is that houses cost less. In all these states, the average price to buy a home is much lower than in most of the U.S.
Taxes: Many of these states have low taxes on property, and some (like Tennessee and South Dakota) don't have a tax on your income from your job.
Bills and Food: Things like electricity and gas, and groceries, cost less in these states too.
Healthcare: In states like Alabama and Mississippi, going to the doctor and getting medicine costs less than in many other places.
Differences between GDP and GNP
10 Questions About the US Government Answered
Key Metrics
| State | Cost of Living vs. US Avg. | Median Home Price | Notable Features |
| Arkansas | 4% lower | Very low | Cheap housing, low utilities |
| Mississippi | 10–17% lower | $151,000 | Lowest housing/gas, low property tax |
| Alabama | 12% lower | $179k–$216k | Low property tax, cheap healthcare |
| West Virginia | Among lowest | Low | Low housing, affordable expenses |
| South Dakota | Well below avg. | Low | No state income tax |
| Oklahoma | 14% lower | $170k–$183k | Low rent, financial assistance |
| Kansas | 12% lower | $189,300 | Low groceries, strong job market |
| Kentucky | Among lowest | Low | Low utilities, affordable housing |
| Missouri | Below avg. | Low | Moderate taxes, cheap housing |
| Tennessee | 11% lower | $232,100 | No income tax, vibrant cities |
Why These States Are So Affordable?
- Housing: The dominant factor is low housing costs, with median home prices well below the national average in all top states.
- Taxes: Many of these states have low property taxes, and some (like Tennessee and South Dakota) have no state income tax.
- Utilities and Groceries: Lower-than-average utility and grocery costs further reduce living expenses.
- Healthcare: States like Alabama and Mississippi offer healthcare costs significantly below the national average.
If you plan on saving your money, the cheapest states to live in 2025 are mostly in the South and the middle part of the country. Whether you care most about cheap homes, low taxes, or just overall lower costs, these states give you good options to live well without spending as much money.
Also Read | Top 10 Poorest Countries in the World
![List Of Top 10 Least Liveable Cities In The World [Updated 2025]](https://img.jagranjosh.com/images/2025/07/18/article/image/List-Of-Top-10-Least-Liveable-Cities-In-The-World-1752848952022.jpg)
Comments
All Comments (0)
Join the conversation