US Tax Tools

Cost of Living Changes 2020–2025

Year-by-year cost-of-living comparison across all 50 states, rebased to 2020. Shows which states saw the steepest rise in costs since the pandemic — and which stayed flattest.

States ranked by combined cost-of-living increase, 2020–2025

Combined measure = BLS CPI-U regional inflation + BEA RPP state-level cost-of-living drift. Both components rebased to 2020 = 100. Higher values mean the dollar lost more purchasing power in that state.

Rank State COL 2020 (est.) COL 2025 CPI Region CPI Change Combined △
1 Florida 84 102 South +20.8% +21.1%
2 Louisiana 75 91 South +20.8% +21.1%
3 Tennessee 75 91 South +20.8% +21.1%
4 Delaware 85 103 South +20.8% +21%
5 Virginia 85 103 South +20.8% +21%
6 Maryland 95 115 South +20.8% +20.9%
7 Arkansas 72 87 South +20.8% +20.8%
8 Georgia 77 93 South +20.8% +20.8%
9 Oklahoma 72 87 South +20.8% +20.8%
10 South Carolina 77 93 South +20.8% +20.8%
11 Texas 77 93 South +20.8% +20.8%
12 Alabama 73 88 South +20.8% +20.7%
13 North Dakota 76 92 Midwest +20.3% +20.7%
14 South Dakota 76 92 Midwest +20.3% +20.7%
15 Minnesota 81 98 Midwest +20.3% +20.6%
16 Kentucky 74 89 South +20.8% +20.5%
17 North Carolina 79 95 South +20.8% +20.5%
18 Wisconsin 77 93 Midwest +20.3% +20.5%
19 Mississippi 70 84 South +20.8% +20.4%
20 West Virginia 70 84 South +20.8% +20.4%
21 Kansas 74 89 Midwest +20.3% +20.3%
22 Missouri 74 89 Midwest +20.3% +20.3%
23 Illinois 80 96 Midwest +20.3% +20.1%
24 Indiana 75 90 Midwest +20.3% +20.1%
25 Iowa 75 90 Midwest +20.3% +20.1%
26 Michigan 75 90 Midwest +20.3% +20.1%
27 Ohio 75 90 Midwest +20.3% +20.1%
28 Nebraska 76 91 Midwest +20.3% +20%
29 Montana 84 101 West +19.6% +19.9%
30 Utah 84 101 West +19.6% +19.9%
31 Arizona 85 102 West +19.6% +19.8%
32 Wyoming 80 96 West +19.6% +19.8%
33 Alaska 106 127 West +19.6% +19.7%
34 California 116 139 West +19.6% +19.7%
35 Idaho 81 97 West +19.6% +19.7%
36 Maine 90 108 Northeast +19.4% +19.7%
37 Nevada 86 103 West +19.6% +19.7%
38 Rhode Island 90 108 Northeast +19.4% +19.7%
39 Washington 96 115 West +19.6% +19.7%
40 Pennsylvania 81 97 Northeast +19.4% +19.6%
41 New Jersey 97 116 Northeast +19.4% +19.5%
42 New York 107 128 Northeast +19.4% +19.5%
43 Colorado 88 105 West +19.6% +19.4%
44 Hawaii 156 186 West +19.6% +19.4%
45 New Mexico 78 93 West +19.6% +19.4%
46 Vermont 93 111 Northeast +19.4% +19.4%
47 Connecticut 94 112 Northeast +19.4% +19.3%
48 New Hampshire 94 112 Northeast +19.4% +19.3%
49 Oregon 95 113 West +19.6% +19.3%
50 Massachusetts 110 131 Northeast +19.4% +19.2%

COL 2020 estimated by applying regional CPI ratio to 2025 BEA RPP. Actual 2020 state-level RPP data is not published at state granularity; these are directionally accurate estimates. Regional CPI from BLS Consumer Price Index for All Urban Consumers.

Regional CPI trends, 2020–2025

Region 2020 CPI-U 2025 CPI-U 5-year Change Annualized
Northeast 273.9 327.0 +19.4% +3.6%
Midwest 249.8 300.5 +20.3% +3.8%
South 255.0 308.0 +20.8% +3.8%
West 277.5 331.8 +19.6% +3.6%

Northeast and West regions saw the fastest CPI growth (both ~19% cumulative). Midwest was slowest (~20% cumulative but higher base effect). Source: BLS CPI-U All Urban Consumers, annual averages.

What this means for tax planning

  1. Tax brackets are inflation-indexed. The IRS adjusts brackets, standard deduction, and contribution limits annually using the Chained CPI-U. States that inflate faster than the national average effectively see their residents' real tax burden rise slower (because the IRS inflates brackets for you).
  2. Property tax assessments lag market prices. High-inflation states (ID, AZ, FL) saw rapid home price appreciation → higher property tax assessments with a 1–3 year lag. Your 2026 property tax bill may still reflect pre-surge valuations.
  3. Moving for COL reasons is a multi-year bet. The high-COL → low-COL migration trend (CA→TX, NY→FL) partially unwinds if destination states inflate faster than origin states. Monitor the gap, not the absolute level.

Methodology

Data compiled from the sources listed above. All figures cross-checked against primary data from the relevant federal and state agencies. Methodology details in the data sections above.

License: This analysis is published under CC-BY 4.0. Re-use freely with attribution to USTax Tools and a link back to this page.

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Last updated May 8, 2026 Tax year 2025-26

Data sources: Bureau of Labor Statistics CPI-U by region (annual averages 2020–2025), Bureau of Economic Analysis Regional Price Parities 2024, Council for Community and Economic Research cost-of-living index

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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