Introduction
Saving money depends on many factors. Housing costs, taxes, utilities, insurance, and transportation all shape a budget. Living in the right state can mean lower expenses and a better financial future. I have analyzed data on cost of living, income tax rates, and housing to rank the ten best states for saving money. The findings are based on concrete numbers, not speculation.
Table of Contents
1. Mississippi
Mississippi has the lowest cost of living in the country. Housing prices sit far below the national average. A median home costs around $160,000, compared to the U.S. median of $400,000. Property taxes are also low. The state’s 7% sales tax may seem high, but the low housing costs offset it.
Example Calculation:
- Monthly mortgage on a $160,000 home at 7% interest over 30 years: $1,064
- The same loan in California for a $500,000 home: $3,326
- Savings: $2,262 per month
2. West Virginia
West Virginia ranks high due to its low housing costs. The median home price is around $140,000. Utilities and healthcare also cost less than in most states. While the state income tax exists, the overall affordability outweighs it.
Comparison Table: Monthly Housing Costs
| State | Median Home Price | Mortgage (7% for 30 years) |
|---|---|---|
| Mississippi | $160,000 | $1,064 |
| West Virginia | $140,000 | $931 |
| California | $500,000 | $3,326 |
3. Arkansas
Arkansas has low housing costs, low property taxes, and cheap groceries. The median home price is below $180,000. State income tax applies, but the cost of living keeps total expenses low.
4. Oklahoma
Oklahoma offers affordable housing and low property taxes. The median home price is around $180,000. Gasoline prices also trend below the national average. The state has a progressive income tax, but total costs remain reasonable.
5. Missouri
Missouri has low housing costs, moderate taxes, and a cheap grocery index. The median home price sits at around $220,000, which is affordable compared to many states.
Cost Breakdown Table:
| Expense | Missouri | National Avg. |
|---|---|---|
| Home Price | $220,000 | $400,000 |
| Gas (per gallon) | $3.20 | $3.85 |
| Sales Tax | 4.225% | 6% |
6. Tennessee
Tennessee stands out because it has no state income tax. Housing costs remain low, with a median home price of about $300,000. The sales tax is high (7%), but lack of an income tax offsets that.
7. Indiana
Indiana has lower-than-average housing and transportation costs. The median home price hovers around $250,000. The state has a flat income tax rate of 3.15%, which is lower than many states.
8. Alabama
Alabama offers affordable housing and low property taxes. The median home price is around $210,000. Utility costs also tend to be lower than the national average.
Example Utility Savings (Per Month):
- Alabama: $350
- California: $600
- New York: $650
9. Kentucky
Kentucky features low housing costs, inexpensive groceries, and affordable healthcare. The state has an income tax, but the overall affordability makes it a strong choice.
10. North Dakota
North Dakota has no state sales tax on groceries. The income tax is low, and energy costs remain affordable. Housing prices are moderate, making it a good place for saving money.
Conclusion
Choosing where to live can impact savings significantly. States with low housing costs, reasonable taxes, and affordable utilities provide the best opportunities for saving money. Mississippi, West Virginia, and Arkansas rank highest based on these factors. Relocating to one of these states can create financial stability and long-term savings.
