Even though inflation is taking its toll all across America there are some places where the cost of living is low enough that people can make their money stretch. If you are thinking anywhere on the east or west coast think again as those are prime spots for high taxes and even higher food and commodity prices.
The south and midwest are the places where your dollar will go the farthest. These areas tend to also have lower average annual incomes so it helps level the playing field. Here is a look at the comparison of what a hundred dollar bill will buy in different areas of the country.
Mississippi is the national leader for value for your money. The low cost of living and price of everyday items makes it the best place for your hard earned cash. Mississippians can buy almost 16% more than the national average.
Compare that to the District of Columbia which is the highest and can buy only $84.60 worth of merchandise for the same $100. Hawaii, New York, and New Jersey came in the next spots on the low side at $85.32, $86.66, and $87.64.
Comparing the state of Kentucky to the District of Columbia would show that a person in Kentucky would have to make $13,000 more a year to keep the same standard of living in DC. A $40,000 income in Kentucky is equivalent to $53,000 in DC.
Other states on the low end of the cost scale are Arkansas at $114.16, and Missouri and Alabama at $113.51. So if you are looking for value you have a few choices.
One component of the equation is the state income tax. The rates are lower in those states that rank the highest for the most part and higher in those that are on the low end. California has the highest state income tax at 13.3% while six states ( Washington, Wyoming, Nevada, South Dakota, Florida, and Texas)have none.
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