Wages Adjusted for Cost of Living
Which states pay the most once local prices are taken into account.
A salary goes further where prices are lower. The Bureau of Economic Analysis measures each state’s price level with regional price parities (RPP): 100 is the national average, 110 means prices are 10% higher. Dividing a state’s wage by its RPP (and multiplying by 100) gives the wage in national-average dollars.
On that basis the best-paying states for a typical worker are District of Columbia, Massachusetts and Alaska; the lowest are Mississippi and Florida. High-wage, high-price states fall: California’s median of $58,240 is worth $52,611 at national prices (rank #26 after adjustment vs. #10 before).
Sorted by adjusted median wage. RPP 2024, wages BLS OEWS May 2025. RPP covers goods, rents and other services but not state and local taxes.
| State | RPP (all items) | RPP housing | Median wage | Adjusted median | Mean wage | Adjusted mean | Rank change |
|---|---|---|---|---|---|---|---|
| District of Columbia | 109.9 | 155.0 | $91,540 | $83,294 | $111,010 | $101,010 | 0 |
| Massachusetts | 105.8 | 128.1 | $63,590 | $60,104 | $85,610 | $80,917 | 0 |
| Alaska | 102.4 | 93.8 | $61,000 | $59,570 | $74,720 | $72,969 | +1 |
| North Dakota | 89.0 | 71.4 | $52,480 | $58,966 | $64,050 | $71,966 | +14 |
| Washington | 107.0 | 126.0 | $62,990 | $58,869 | $83,330 | $77,879 | -2 |
| Colorado | 103.1 | 127.4 | $59,800 | $58,002 | $77,190 | $74,869 | -1 |
| Minnesota | 98.6 | 91.3 | $56,920 | $57,728 | $71,160 | $72,170 | +5 |
| Connecticut | 103.6 | 117.0 | $59,690 | $57,616 | $77,420 | $74,730 | -2 |
| Vermont | 98.0 | 86.5 | $56,390 | $57,541 | $69,050 | $70,459 | +5 |
| Maryland | 105.0 | 121.1 | $59,510 | $56,676 | $77,580 | $73,886 | -2 |
| Rhode Island | 102.3 | 105.6 | $56,780 | $55,503 | $71,900 | $70,283 | +2 |
| New York | 107.9 | 122.2 | $59,670 | $55,301 | $82,460 | $76,423 | -5 |
| Iowa | 87.8 | 65.3 | $48,540 | $55,285 | $59,830 | $68,144 | +19 |
| Oregon | 103.4 | 108.6 | $57,000 | $55,126 | $72,460 | $70,077 | -3 |
| Virginia | 101.1 | 106.8 | $55,690 | $55,084 | $74,040 | $73,234 | +2 |
| Nebraska | 90.1 | 75.2 | $48,980 | $54,362 | $62,400 | $69,256 | +13 |
| Wyoming | 92.7 | 71.1 | $50,270 | $54,229 | $61,560 | $66,408 | +6 |
| New Jersey | 108.8 | 134.3 | $58,570 | $53,833 | $78,040 | $71,728 | -9 |
| New Hampshire | 104.2 | 114.9 | $55,880 | $53,628 | $71,360 | $68,484 | -3 |
| Wisconsin | 94.1 | 79.3 | $50,270 | $53,422 | $64,270 | $68,300 | +2 |
| Kansas | 90.1 | 71.2 | $48,010 | $53,285 | $60,640 | $67,303 | +13 |
| Ohio | 92.8 | 73.0 | $49,380 | $53,211 | $64,390 | $69,386 | +5 |
| South Dakota | 88.6 | 67.6 | $47,080 | $53,138 | $57,610 | $65,023 | +20 |
| Maine | 97.0 | 78.9 | $51,430 | $53,021 | $65,780 | $67,814 | -3 |
| Missouri | 90.8 | 69.9 | $47,800 | $52,643 | $62,160 | $68,458 | +14 |
| California | 110.7 | 154.3 | $58,240 | $52,611 | $80,690 | $72,891 | -16 |
| Delaware | 99.8 | 102.0 | $52,190 | $52,295 | $69,880 | $70,020 | -8 |
| Kentucky | 90.2 | 64.3 | $46,920 | $52,018 | $58,990 | $65,399 | +16 |
| Illinois | 100.0 | 93.9 | $51,960 | $51,960 | $71,130 | $71,130 | -9 |
| Oklahoma | 87.8 | 62.8 | $45,600 | $51,936 | $56,950 | $64,863 | +17 |
| Louisiana | 88.2 | 63.1 | $45,520 | $51,610 | $56,600 | $64,172 | +17 |
| Tennessee | 91.9 | 79.1 | $47,380 | $51,556 | $60,800 | $66,159 | +9 |
| Montana | 94.6 | 84.6 | $48,740 | $51,522 | $60,880 | $64,355 | -3 |
| Alabama | 88.8 | 61.8 | $45,670 | $51,430 | $57,500 | $64,752 | +12 |
| Indiana | 93.3 | 73.9 | $47,860 | $51,297 | $60,840 | $65,209 | +3 |
| Michigan | 96.2 | 82.3 | $49,270 | $51,216 | $64,920 | $67,484 | -8 |
| New Mexico | 92.2 | 73.6 | $47,210 | $51,204 | $62,330 | $67,603 | +5 |
| Hawaii | 110.0 | 125.3 | $56,320 | $51,200 | $70,270 | $63,882 | -23 |
| Pennsylvania | 97.6 | 85.1 | $49,690 | $50,912 | $65,730 | $67,346 | -13 |
| North Carolina | 94.3 | 81.4 | $47,970 | $50,870 | $64,290 | $68,176 | -4 |
| Utah | 98.9 | 107.8 | $50,110 | $50,667 | $66,290 | $67,027 | -17 |
| West Virginia | 89.5 | 54.2 | $45,300 | $50,615 | $56,470 | $63,095 | +7 |
| Idaho | 95.5 | 90.0 | $47,970 | $50,230 | $61,170 | $64,052 | -8 |
| Arkansas | 86.9 | 58.2 | $43,630 | $50,207 | $54,890 | $63,165 | +6 |
| Texas | 97.1 | 96.5 | $48,620 | $50,072 | $65,750 | $67,714 | -14 |
| Georgia | 96.3 | 88.7 | $48,170 | $50,021 | $65,920 | $68,453 | -13 |
| Arizona | 100.7 | 106.8 | $50,060 | $49,712 | $67,620 | $67,150 | -22 |
| South Carolina | 93.7 | 80.5 | $46,490 | $49,616 | $59,280 | $63,266 | -3 |
| Nevada | 100.0 | 114.1 | $47,660 | $47,660 | $62,050 | $62,050 | -9 |
| Florida | 103.4 | 122.1 | $47,880 | $46,306 | $64,670 | $62,544 | -13 |
| Mississippi | 87.0 | 56.5 | $40,120 | $46,115 | $50,810 | $58,402 | 0 |
Cheapest and most expensive states
Prices are lowest in Arkansas (RPP 86.9), Mississippi and Iowa, and highest in California (110.7), Hawaii and District of Columbia. Housing is the biggest driver: housing RPPs run from 54.2 to 155.0.
“Rank change” shows how many places a state moves when going from the nominal median-wage ranking to the adjusted one (positive = moves up).
Frequently asked questions
Which state has the best wages for the cost of living?
District of Columbia has the highest median wage after adjusting for prices ($83,294 in national-average dollars), followed by Massachusetts and Alaska.
Does a higher salary always mean more money?
No. A higher nominal salary in an expensive state can buy less than a lower salary in a cheaper one. For example, California’s median wage of $58,240 is worth $52,611 at national prices, while District of Columbia’s $91,540 is worth $83,294.