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Are you looking for a place where your paycheck or savings can go further? Moving to one of the cheapest states to live in could mean spending less on housing, groceries, utilities, and other everyday expenses. But finding the most affordable state to live in isn’t as simple as picking the one with the lowest home prices.
In fact, current rankings don’t even agree on which state takes the top spot. That’s because each study measures affordability differently. Below, we’ll break down some of the most affordable states for 2026, what drives their lower costs, and what to consider before packing up and making the move.
What Makes a State Affordable?
Cost of living is about more than your rent or mortgage. To understand how affordable a state is, you need to look at the expenses that make up your monthly budget.
Some of the biggest factors include:
Housing: Home prices and rent can impact overall affordability, especially when housing takes up a large share of your budget.
Taxes: State income, property, and sales taxes vary widely. Nine states have no individual income tax in 2026, but that doesn’t necessarily make them the least expensive places to live.
Groceries and utilities: Food, electricity, water, heating, and cooling costs can change significantly from one part of the country to another.
Transportation: Gas prices, insurance, commute distances, and access to public transportation all affect what you’ll spend getting around.
Healthcare: Insurance aside, the cost of medical services can also vary by location and become an important part of your budget.
This is also why you’ll find different answers when you search for the cheapest state to live in. North American Van Lines’ 2026 affordability index places Mississippi first, followed by Oklahoma and Kansas. Its methodology considers factors including housing, groceries, utilities, income, taxes, inflation, and mortgage rates. Another current cost-of-living comparison puts Oklahoma first based on an index incorporating housing, utilities, groceries, transportation, healthcare, and miscellaneous expenses.
Rather than focusing on a single ranking, you should consider what’s driving each state’s affordability and how those costs line up with your budget. A state with inexpensive housing may have higher taxes, while another with low taxes could come with higher utility or transportation costs. The most affordable choice is the one that helps you save on the expenses that are important to you.
Cheapest States to Live in for 2026
If lowering your monthly expenses is the goal, the South and Midwest are good places to start your search.
Mississippi
Mississippi takes the top spot in North American Van Lines’ 2026 ranking, with an affordability index score of 85.3. Housing is one of the biggest reasons, with current cost-of-living data showing housing expenses well below the national average.
The tradeoff is that lower costs often come with lower wages and fewer employment options in some communities. If you’re moving for work, compare local salaries and job availability along with housing prices.
Oklahoma
Oklahoma is another strong contender. Its housing index is low, making the state attractive to people hoping to reduce rent or mortgage expenses. However, depending on where you live, severe storms and tornado risk may affect insurance costs and should be part of your budget when comparing communities.
Kansas
Kansas consistently performs well for affordability, with housing and transportation costs both below the national average. You’ll find larger employment centers and more amenities around cities like Wichita and Kansas City, while smaller communities may offer even lower housing costs.
Missouri
Missouri offers a good balance for people who want affordability without giving up access to larger cities. Its overall cost of living remained well below the national average in the first quarter of 2026. However, costs still vary considerably by location. Living in or around Kansas City or St. Louis can be more expensive than living in one of Missouri’s smaller communities.
Alabama
Low housing costs help make Alabama one of the country’s most affordable states. As with Mississippi, compare potential savings against local wages and employment opportunities if you’ll be looking for work after the move.
Iowa
Iowa remains an affordable option for homebuyers. Recent housing research found it among the country’s most affordable states for a new mortgage, even after factoring in property taxes. However, property taxes can be expensive and make up a large chunk of monthly costs, so look at the complete housing payment rather than just the purchase price.
Nebraska
Nebraska combines relatively affordable housing with reasonable everyday expenses. Cities like Omaha and Lincoln also offer more employment and entertainment options than you might expect from a lower-cost state.
Arkansas
Arkansas offers low housing costs and an affordable day-to-day lifestyle. It’s appealing if you’re looking for a smaller city or rural community with easy access to outdoor recreation. Job markets and access to services can vary across the state, so research individual communities before deciding where to settle.
West Virginia
West Virginia stands out for housing affordability, with some data putting its housing index far below the national baseline. The tradeoff is that some rural areas have fewer employment opportunities, healthcare providers, and everyday services than larger metropolitan areas.
Indiana
Indiana also has affordable housing, even though it falls just outside North American Van Lines’ top nine. Other studies rank it in the top 10. Additionally, its location keeps you within reach of larger Midwest employment centers.
Ultimately, the most affordable state depends on which expenses you’re trying to reduce. If homeownership is your priority, housing costs are the most important. If you’re still working, you should consider local wages, transportation, taxes, and job opportunities as well.
What About States with No Income Tax?
Taxes can make a difference in your monthly budget, especially if you’re comparing states with similar housing and everyday expenses. In 2026, the following states don’t levy a broad individual income tax on wages:
Nevada
South Dakota
Tennessee
That can make these states attractive if keeping more of your income is a priority. But don’t assume a state without an income tax will automatically be one of the cheapest places to live.
States still need revenue to fund public services, and the overall tax picture varies. For example, some states may have higher property or sales taxes to offset the income tax. Housing, insurance, utilities, and other everyday expenses can also be more than what you save on state income taxes.
Before choosing a state based on taxes alone, compare your total expected expenses. You should consider housing costs, property taxes, sales and excise taxes, homeowners or renters insurance, transportation, and utilities. The goal is to find the place where your overall budget works best. A low-cost state with an income tax may leave you with more money each month than a no-income-tax state with expensive housing and insurance.
How to Save Money on an Interstate Move
Moving to a more affordable state can lower your expenses over the long term, but getting there isn’t free. Transportation, movers, packing supplies, and temporary housing add up.
A little planning before moving day can help keep those costs under control.
Move less stuff: Long-distance moving costs often depend partly on the amount or weight of your belongings. Go through your home before requesting a final quote and separate what you want to take from what you don’t. Fewer boxes and pieces of furniture result in a smaller, more manageable move.
Sell or donate before you pack: Don’t pay to transport things you know you won’t use. Sell furniture, electronics, tools, and other valuable items you don’t need to help offset moving expenses, then donate usable items that remain.
Avoid paying for two homes when possible: Closing dates and lease terms don’t always line up. If you need to move out of your current home before you can move into your new one, short-term household storage can give you a place for your belongings while you stay with family or use temporary accommodations.
Don’t choose a bigger home just for your stuff: Moving somewhere more affordable is a chance to reconsider how much space you need. If you’re downsizing, temporary storage can give you time to decide what fits your new home instead of paying for extra bedrooms or garage space you don’t need. Or, if you’re not ready to part with your belongings, you can rent a secure storage unit long-term.
Compare the full cost of your options: Get estimates for movers, truck rentals, storage, fuel, packing materials, and temporary accommodations before making a moving plan. The cheapest option on paper isn’t always the least expensive once every cost is included.
Self-storage can help make the moving process easier. It can give you breathing room between closing dates, help you move into a smaller home, or keep your belongings secure while you decide what you want to bring with you.
If temporary storage fits your moving budget, Storage Star offers a range of unit sizes with month-to-month rental options at many locations. Find a Storage Star facility near your new home to compare available units and current pricing before you move.
FAQs
What’s the cheapest state to live in right now?
It depends on how you measure affordability. North American Van Lines ranks Mississippi as the cheapest state to live in for 2026, while other indexes put Oklahoma first. Both states offer low housing costs, but your personal expenses will depend on factors like taxes, transportation, insurance, and healthcare.
Which states have no state income tax?
As of 2026, nine states don’t have an individual income tax. These include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. However, no income tax doesn’t automatically mean a lower overall cost of living. Property taxes, sales taxes, housing, and insurance can offset some of those savings.
Is it cheaper to use storage or pay to move more belongings?
It depends on how much you’re moving, the distance, and how long you’ll need storage. Before packing everything, compare the cost of transporting large or rarely used belongings with the cost of a short-term storage unit. Selling or donating items you no longer need may be the least expensive option of all.
If you need time to decide what to keep, a month-to-month Storage Star unit can give you temporary space without forcing you to make every decision before moving day.
Does a cheaper cost of living always mean lower taxes?
No. Cost of living considers expenses beyond taxes, including:
Housing
Groceries
Utilities
Healthcare
Transportation
A state can have high taxes but affordable housing, or no income tax but higher costs in other areas. Compare your total expected monthly expenses rather than focusing on a single number.
How much does it typically cost to move to another state?
There’s no single average that applies to every interstate move. Your total depends on the distance, amount of furniture and other belongings, moving method, time of year, insurance, and whether you need temporary storage or accommodations. Get several quotes before setting a budget. You can often reduce the costs by decluttering, moving during a less popular time of year, and avoiding paying to transport items you don’t plan to use in your new home.
