10 States With Low Cost of Living And High Wages

Finding states with low cost of living and high wages is the smartest way to stretch your money. You'll make higher than average wages but not have to spend every dime just to keep up with the cost of living.

If you're considering moving because you work remotely or are ready for a change, check out the top 10 states low on the cost of living index but with high wages.

10 States With Low Cost Of Living And High Wages

The cost of living index measures the estimated cost of living a “normal” life in specific areas. No two states have the same cost of living index rating, but you can gauge how much it costs to live in an area by its cost of living index rating.

Most cost of living indexes are on a scale where 100 is the national average. States with a higher than 100 cost of living have higher than average expenses, and those with a lower than 100 cost of living rating have lower living costs.

If you plan to live in an area with higher living costs, you must make more than the mean income for the area to ensure you can afford the food, clothing, healthcare, and housing costs.

Living in an area with a low cost of living and high wages is the perfect strategy. Affordability won’t be an issue for you, and you’ll be able to save for financial goals and realize your dreams without dealing with financial issues.

10. Virginia

• Cost of living index: 103
• Mean income: $111,287

Virginia, known as the Old Dominion State, has a population of 8,642,474; its capital city is Richmond. Virginia was named after Queen Elizabeth I, whose nickname was Virgin Queen. The state has plateaus, rivers, mountains, and ravines, and its highest peak is Mount Rogers. Virginia's cost of living is just about middle of the road, but its average wages are much higher than the national average.

9. Utah

• Cost of living index: 102
• Mean income: $105,076

Utah has a population of 3,380,800 and is made up of mountains, deserts and high plateaus. Utah's capital, Salt Lake City, is in the north-central part of the state and is the state's largest city. Over half of Utah is a plateau, and its nickname, “The Beehive State,” corresponds with hardworking pioneers that founded the state, who they said were “busy as bees,” which still must be true today as its average income is well beyond the national average.

8. New Jersey

• Cost of living index: 114
• Mean income: $124,951

New Jersey has the highest cost of living index of any state on this list, but it also has the highest median income, making it easier for the people of New Jersey to afford living there, and there's no shortage of people! There are 9,267,120 people living there. The beautiful Garden State had its first visitors 12,000 years ago and is so named because of the vast amount of food grown here when it was first discovered.

7. Iowa

• Cost of living index: 90
• Mean income: $86,499

The Hawkeye State was the 29th state founded and has a population of 3.193 million. Some famous names from Iowa include President Herbert Hoover, comedian Johnny Carson, and Buffalo Bills football player Bill Cody. Iowa is bordered by the Missouri and Mississippi rivers, and its capital is Des Moines. Iowa has a low cost of living and above-average income, creating the perfect situation for most households.

6. Texas

• Cost of living index: 93
• Mean income: $93,668

They say they do everything bigger in Texas, but the cost of living is below average, which is great for the 29.53 million people who live there. Known as the Lone Star State, Texas joined the U.S. in 1845. Texas has one mountainous region and is home to some of the country's largest ranches. Its capital is Austin, but its largest city is Houston.

5. Kansas

• Cost of living index: 88
• Mean income: $86,580

Kansas has a low population of 2.935 million, which is surprising since it has a low cost of living. Nicknamed the Sunflower State for its vast number of sunflower fields, Kansas also has pastures, forests and the Great Plains. Some famous people who lived here are Amelia Earhart and Erin Brockovich.

4. Georgia

Cost of living index: 91

Mean income: $92,425

Georgia is the 8th most populated state, with 10.79 million people living there. Atlanta is the capital and it's also the state's largest city. Most people know why it's called the Peach State because of the large number of peaches grown there yearly. Today they produce 2.6 billion bushels of peaches per year. You'll find most landforms in Georgia, including mountains, valleys and hills; its cost of living is below average.

3. Nebraska

• Cost of living index: 90
• Mean income: $89,209

Nebraska has just 1.9 million people living there, and they, too, have a below-average cost of living. It’s known as the Cornhusker State because they are home to the University of Nebraska Cornhuskers. They are also the third largest corn producers in the country. Nebraska has two major geographic features, the Great Plains and the Dissected Till Plains, which are low hills and windblown sediment areas.

2. Minnesota

• Cost of living index: 94
• Mean income: $103,305

The North Star State has just about an average cost of living and a population of 5.7 million people. Minnesota is known as the Land of 10,000 Lakes and is located at the start of the Mississippi River. Scotch tape was invented in Minnesota, and many people visit the state for the famous Mall of America.

1. Illinois

• Cost of living index: 91
• Mean income: $99,874

The cost of living in Illinois is just below average, and the mean income is somewhat lower than other states on this list. It's sixth in population, with 12.67 million people living there. The biggest city in Illinois is Chicago, but its capital is Springfield. Illinois' nickname is the Prairie State because, at one point, the entire state was covered in prairie grass.

The Bottom Line: Living In These States Can Make Your Money Go Further

A low cost of living and high wages can help stretch your money, allowing you to reach financial goals, save for the future and not worry about affordability. Remote workers are in a great position to move to one of these states and take advantage of the low cost of living.

If you're considering moving to a state low on the cost of living index, start a mortgage application today to get started!

Methodology: States With High-Paying Jobs And Low Cost Of Living

Rocket Homes^SM collected and analyzed the most recent data on cost of living and household income to give us insight into the top states with low cost of living and high wages. These metrics were chosen based on public data availability and topical relevancy. Metrics from the U.S. Census are based on 2021 ACS 1-year estimates.

Weights were then applied to each metric depending on their individual importance in the study. The weighted scores for each metric were summed to create the overall score for each state. The final scores are sorted to produce the final rankings.