The Priciest Places to Call Home: Which U.S. States Will Drain Your Wallet

Living expenses across America paint a stark picture—depending on your zip code, you could be spending nearly double what someone in a more affordable region shells out annually. When examining the most expensive states to live in through the lens of groceries, utilities, healthcare, and transportation, the disparities become jaw-dropping.

Using 2022 Consumer Expenditure Survey data from the Bureau of Labor Statistics, we analyzed spending patterns across housing, healthcare, utilities, groceries, and transportation to identify where Americans face the heaviest financial burden.

Hawaii Tops the Chart at Eye-Watering Costs

At a cost-of-living index of 181.5, Hawaii takes the crown for the most expensive state to live in—surpassing every other location by at least 31 points. Residents face annual expenditures of $132,435, which translates to nearly $60,000 more than the national average of $72,967. The island’s remote location drives up prices across virtually every category, from groceries to fuel costs.

Massachusetts and Washington D.C.: The Northeast’s Expensive Pair

Massachusetts ranks second with a cost-of-living index of 143.1 and annual expenses of $104,416. Utilities alone consume roughly $17,902 yearly—$3,400 higher than the U.S. average. Grocery bills also run about $500 above the national baseline.

Washington D.C., while technically not a state, deserves an honorable mention with annual costs of $109,232 (index: 149.7). The nation’s capital sits $36,265 above national averages, though healthcare expenses remain the second-lowest on the list at $7,156 annually.

California’s Transportation and Energy Burden

California’s living expense ratio of 139.7 reflects $101,935 in yearly expenditures. The state’s notoriously high gasoline prices and limited public transit infrastructure drive transportation costs to 126.1—second only to Hawaii. Annual transportation expenses average $5,736, substantially exceeding national norms.

Alaska’s Healthcare Shock

Alaska presents a unique challenge: healthcare costs here run 52.1% above the national average, the highest disparity among all expensive states to live in. Limited medical provider competition, elevated healthcare worker compensation, and higher hospital profit margins all contribute to this burden. Total annual expenditures reach $91,428 with a cost-of-living index of 125.3.

New England and Northern States: The Secondary Wave

New Hampshire (index: 114.6, $83,620 annually) faces above-average housing, utilities, and transportation. Healthcare tops $8,623 yearly—the second-most expensive healthcare on this list.

Vermont (index: 115.6, $84,350 annually) struggles with energy costs sitting 21.2% above national averages. Geographic position at the energy pipeline’s end and reliance on natural gas for residential use (rather than industrial offset) inflate utility bills.

Connecticut (index: 114.4, $83,474 annually) experiences elevated utility costs at $18,422 versus the national average of $14,507, partly due to dependence on natural gas for power generation.

Rhode Island (index: 111.8, $81,577 annually), despite its small size, carries surprising expenses. Utilities tally $17,249 annually, though grocery prices align closely with national averages at 99.5 ($5,674 yearly).

What This Means for Your Budget

Whether you’re considering relocation or evaluating your current financial situation, understanding which states rank among the most expensive states to live in helps contextualize your spending. From Hawaii’s island premium to the Northeast’s utility surcharges, geography heavily influences your annual financial obligations.