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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 + the state-level drift of BEA Regional Price Parities (2024, all items). 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 Texas 80 97.1 South +20.8% +21.1%
2 Tennessee 76 91.9 South +20.8% +20.9%
3 West Virginia 74 89.5 South +20.8% +20.9%
4 Louisiana 73 88.2 South +20.8% +20.8%
5 Mississippi 72 87 South +20.8% +20.8%
6 North Carolina 78 94.3 South +20.8% +20.8%
7 Arkansas 72 86.9 South +20.8% +20.7%
8 Maryland 87 105 South +20.8% +20.7%
9 Missouri 75 90.8 Midwest +20.3% +20.7%
10 Georgia 80 96.3 South +20.8% +20.6%
11 Virginia 84 101.1 South +20.8% +20.6%
12 Delaware 83 99.8 South +20.8% +20.5%
13 Florida 86 103.4 South +20.8% +20.5%
14 Kentucky 75 90.2 South +20.8% +20.5%
15 Oklahoma 73 87.8 South +20.8% +20.5%
16 South Carolina 78 93.7 South +20.8% +20.5%
17 Wisconsin 78 94.1 Midwest +20.3% +20.5%
18 Alabama 74 88.8 South +20.8% +20.4%
19 Illinois 83 100 Midwest +20.3% +20.4%
20 Ohio 77 92.8 Midwest +20.3% +20.4%
21 Iowa 73 87.8 Midwest +20.3% +20.3%
22 Michigan 80 96.2 Midwest +20.3% +20.3%
23 Minnesota 82 98.6 Midwest +20.3% +20.3%
24 North Dakota 74 89 Midwest +20.3% +20.3%
25 Kansas 75 90.1 Midwest +20.3% +20.2%
26 Nebraska 75 90.1 Midwest +20.3% +20.2%
27 Indiana 78 93.3 Midwest +20.3% +20%
28 South Dakota 74 88.6 Midwest +20.3% +20%
29 Oregon 86 103.4 West +19.6% +19.9%
30 Washington 89 107 West +19.6% +19.9%
31 Arizona 84 100.7 West +19.6% +19.7%
32 Colorado 86 103.1 West +19.6% +19.7%
33 Montana 79 94.6 West +19.6% +19.7%
34 New Mexico 77 92.2 West +19.6% +19.7%
35 Hawaii 92 110 West +19.6% +19.6%
36 Maine 81 97 Northeast +19.4% +19.6%
37 New Hampshire 87 104.2 Northeast +19.4% +19.6%
38 New York 90 107.9 Northeast +19.4% +19.6%
39 Idaho 80 95.5 West +19.6% +19.5%
40 New Jersey 91 108.8 Northeast +19.4% +19.5%
41 Utah 83 98.9 West +19.6% +19.4%
42 Vermont 82 98 Northeast +19.4% +19.4%
43 Alaska 86 102.4 West +19.6% +19.3%
44 California 93 110.7 West +19.6% +19.3%
45 Nevada 84 100 West +19.6% +19.3%
46 Connecticut 87 103.6 Northeast +19.4% +19.2%
47 Pennsylvania 82 97.6 Northeast +19.4% +19.2%
48 Rhode Island 86 102.3 Northeast +19.4% +19.2%
49 Wyoming 78 92.7 West +19.6% +19.2%
50 Massachusetts 89 105.8 Northeast +19.4% +19.1%

COL 2020 estimated by applying the regional CPI ratio to the BEA Regional Price Parity for the state. State-level cost-of-living data for 2020 is not separately published; 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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