The 10 cheapest states for a comfortable life on a low income, ranked

Where everyday costs stretch your dollar furthest

As living costs continue to spiral, affordability has become one of the biggest issues on Americans' minds and the number-one concern for many. From groceries to mortgages and healthcare, everyday expenses have jumped sharply over the past few years, squeezing household budgets across the country. It's no surprise then that people are flocking to states where their money goes further.

Click or scroll on to discover the 10 states where you can get by for less, based on data from the MIT Living Wage Calculator.

What is the MIT Living Wage Calculator?

America's most trusted benchmark for livable income data, the MIT Living Wage Calculator, estimates the minimum needed to cover basic necessities, including housing, food, transportation, healthcare, and taxes.

Our ranking is based on the annual living wage for a single adult with no kids. But we've also included typical yearly childcare costs for one child, so families with young kids can figure out where they'll get the best bang for their buck.

10. Alabama: $43,804 living wage

Alabama's median salary of $45,670 sits above the state’s annual living wage of $43,804 for a single adult, giving residents a small financial cushion.

Everyday expenses are relatively low across the board, and housing, healthcare, and transportation (including that all-important gasoline price) tend to be cheaper than the national average. Childcare averages $7,977 a year.

9. Ohio: $43,680 living wage

Ohio's cushion is even softer than Alabama's, with the median annual salary coming in at $49,380. Those on the average of $64,390 will find their dollars going even further.

The Buckeye State is most affordable for transportation, with its typical annual cost per adult of $8,797 one of the lowest in the land. On the flip side, childcare is the most expensive in this round-up at $14,287 per year. Yet it remains far cheaper than the eye-watering rates seen in states such as Massachusetts and Connecticut.

8. Oklahoma: $43,118 living wage

Oklahoma's median salary of $45,600 clears the state’s annual living wage of $43,118 for a single adult, though the gap is one of the narrowest in this round-up. It's also below the national median of $50,980.

Affordability is fairly balanced across categories. Childcare averages $10,977 a year, placing it in the middle of the pack. According to MERIC, the state is also the cheapest in America when it comes to the cost of living, but housing affordability largely drives the state's low costs, as healthcare and grocery costs aren't all that economical.

7. Mississippi: $43,035 living wage

Often dubbed the poorest state, Mississippi has the lowest median salary in the country at $40,120 so those on the living wage will clearly struggle.

That said, childcare is the cheapest in the nation at $7,258 annually. The state also boasts low-cost healthcare, and groceries and transportation costs come in well under the national average.

6. North Dakota: $42,868 living wage

North Dakota pairs a $42,868 living wage with the highest median salary in this round-up at $52,480, creating the widest financial cushion among the top 10 states.

Healthcare is where the Peace Garden State really shines, with some of the lowest annual medical costs in the ranking at $3,435 a year. Taxes are comparatively light, but childcare runs higher than most of the group at $11,743 annually.

5. South Dakota: $42,702 living wage

North Dakota's southern twin is another haven of affordability, but the gap between the annual living wage and the state median of $47,080 is narrower.

The budget superstar is housing, with the state ranking among the cheapest by this metric. South Dakota also has some of the lowest internet and mobile costs, not to mention the lowest taxes, with an annual burden of around $5,300 per adult. Meanwhile, childcare costs an average of $8,955 annually.

4. Louisiana: $42,369 living wage

Louisiana's relatively low median salary of $45,520 still exceeds the state's annual living wage of $42,369 for a single adult. While economical from a national perspective, housing is the state's cost of living bugbear. The typical annual bill per adult is one of the highest in the round-up at $10,388.

Meanwhile, childcare doesn't break the bank, typically costing $8,658 a year 

3. Kentucky: $42,036 living wage

Kentucky's median salary of $46,920 leaves a moderate gap above the state's living wage, helping make paychecks go further in day-to-day life.

The Bluegrass State is a standout at the grocery store and farmers' market, with some of the lowest food costs in this ranking at under $4,000 a year. Healthcare costs aren't exorbitant, and childcare averages $8,419 annually.

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2. Arkansas: $41,620 living wage

With a median wage of $43,630, Arkansas' affordability cushion isn't generous, but the state seriously impresses across the board.

The Natural State is one of the cheapest in the nation for housing and healthcare, groceries come in below the national average, and it has one of the fairest income tax systems in the country. Childcare is admittedly on the high side at $9,450.

1. West Virginia: $40,622 living wage

West Virginia's median salary of $45,300 is low by national standards, but it does provide a decent gap from the living wage. Living costs in West Virginia are reasonably affordable, coming in at 13% below the national average according to MERIC. The Mountain State boasts the third-cheapest overall housing costs, with the nation’s lowest median monthly rent at just $850.

Residents also save on medical bills and transportation, while childcare is around $9,500 annually.

A quick reality check

Our round-up reflects what it costs to live, not how easy it is to find well-paid work. Some of the cheapest states also offer fewer high-paying jobs or limited career options, which can shrink the cushion for many households.

The figures also assume full, out-of-pocket costs. In some places, families may qualify for free or subsidized childcare, housing, healthcare, tax credits, or other benefits that can significantly lower real expenses.

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Now take a look at the average salary in every US state