Cheapest State to Live in 2025: Where Your Money Stretches Furthest

Looking for a place where rent, groceries, and taxes won’t eat up most of your paycheck? You’re not alone. More people are hunting for states that let them keep a bigger slice of their earnings. Below you’ll find the key factors that define a cheap state, a quick rundown of the top affordable options, and some hands‑on tips to make the move smooth.

What Makes a State Cheap?

Cost of living isn’t just about housing. It’s a mix of home prices, rent, utilities, food, transportation, and state taxes. A state with low property taxes but high income tax might still feel pricey. The sweet spot is low housing costs, modest taxes, and everyday expenses that stay under the national average.

Another piece of the puzzle is the salary you need to live comfortably. For example, a recent guide on Wyoming shows that a single person can live well on about $45,000 a year, while a family of four needs around $85,000. Those numbers change dramatically from state to state, so you have to match income expectations with local costs.

Top Affordable States in 2025

Wyoming tops the list for many thanks to its low property taxes, cheap rent, and no state income tax. Cities like Cheyenne and Casper offer apartments under $1,000 per month and grocery bills that are 10‑15% below the national average. If you’re eyeing a quieter lifestyle with plenty of outdoor space, Wyoming is a solid pick.

Utah isn’t the first name that comes to mind for cheap living, but parts of the state—especially outside Salt Lake City—offer surprisingly low costs. The cost‑of‑living guide for Utah highlights that a modest two‑bedroom apartment can be found for $1,100, and the state’s strong job market keeps salaries competitive.

Mississippi remains a heavyweight in the affordability race. Housing costs are among the lowest in the country, with median home prices hovering around $150,000. The state also has relatively low Medicaid and sales taxes, making everyday spending easier on the wallet.

West Virginia provides a mix of low housing costs and beautiful scenery. Median rent is about $800, and the state’s income tax rates are modest. For retirees or remote workers, the lower cost of broadband and utilities adds to the appeal.

These states share a couple of common traits: affordable rent or home prices, lower-than‑average taxes, and a cost of living that lets a moderate salary go further.

When you’re comparing options, use a simple calculator: take the median rent, add average utility costs, estimate grocery and transportation expenses, and then factor in state tax rates. If the total comes in under 30% of the median household income for that state, you’re likely in a cheap‑living zone.

Ready to start hunting? Jump on the articles that inspired this list: the Wyoming salary guide, the Utah living pros‑and‑cons piece, and the “Nicest but Cheapest Places to Live” roundup. They give concrete numbers, city‑by‑city breakdowns, and real‑world tips on finding rentals, negotiating leases, and budgeting for the first few months.

Bottom line: the cheapest state isn’t a one‑size‑fits‑all label. It depends on your family size, job situation, and lifestyle priorities. Use the factors above, match them with your income, and you’ll land in a place where you can finally breathe easy about money.