Your dollars go further in some states than others.
In expensive states like New York, you can afford comparatively less than average; in less expensive states like Mississippi, you can buy relatively more.
“Regional price differences are strikingly large; real purchasing power is 36% greater in Mississippi than it is in the District of Columbia,” writes the Tax Foundation.
“In other words: by this measure, if you have $50,000 in after tax income in Mississippi, you would have to have after-tax earnings of $68,000 in the District of Columbia just to afford the same overall standard of living.”
Here’s the map:
The states with the largest relative value of $100 were:
- Mississippi ($115.34)
- Arkansas ($114.29)
- Alabama ($113.90)
- South Dakota ($113.64)
- West Virginia ($112.49)
The states with the smallest relative value of $100 were:
- District of Columbia ($84.67)
- Hawaii ($85.62)
- New York ($86.43)
- New Jersey ($87.34)
- California ($88.97)