Cost of Living Guide · BLS CES 2024 · All 50 States

Average Monthly Expenses by State 2026: Cost of Living Comparison

Q: What is the average monthly expense for an American household?

The Bureau of Labor Statistics Consumer Expenditure Survey 2024 reports average annual U.S. household expenditures of $77,158 — approximately $6,430 per month. This covers all spending categories: housing ($2,321/month or 34.9% of total), transportation ($1,214/month or 18.3%), food ($1,014/month or 15.3%), healthcare ($432/month or 6.5%), entertainment ($383/month or 5.8%), and other categories. Note: this is the national average across all household sizes and income levels; the median household spends considerably less. Source: BLS CES 2024.

Q: What is the biggest monthly expense for most households?

Housing is the single largest monthly expense for American households, consuming approximately 34.9% of total spending, or $2,321 per month on average (BLS CES 2024). Housing includes rent or mortgage, property taxes, homeowner's or renter's insurance, and utilities. In high-cost states like California, New York, and Hawaii, housing often exceeds 40% of monthly spending. In lower-cost states like Mississippi or Arkansas, housing may be closer to 25–28% of spending. The 50/30/20 budgeting rule recommends spending no more than 30% of gross income on housing specifically. Source: BLS CES 2024.

Q: How does cost of living affect how much I need to save for retirement?

Your monthly expenses directly determine your retirement number. The formula is: (expected annual retirement spending − annual Social Security income) ÷ 0.04 = savings needed. In Hawaii ($7,200/month = $86,400/year in expenses), a retiree needs approximately $1.5M+ in savings even after Social Security. In Mississippi ($3,500/month = $42,000/year), the same formula requires only about $430,000 in savings. That's a $1 million+ difference in required savings purely from the choice of retirement location. Source: BLS CES 2024; Plootus Research 2026.

Q: What is a good monthly budget?

A commonly recommended framework is the 50/30/20 rule: allocate 50% of after-tax income to needs (housing, food, utilities, transportation), 30% to wants (entertainment, dining out, hobbies), and 20% to savings and debt repayment. On a $5,000/month after-tax income: $2,500 to needs, $1,500 to wants, $1,000 to savings. However, for retirement readiness, consider bumping savings to 15–20% of gross income if behind on retirement goals. Plootus recommends always capturing the full 401(k) employer match before other spending optimization. Source: Consumer Financial Protection Bureau; Fidelity 2026.

Monthly household expenses range from $3,500 in Mississippi to $7,200 in Hawaii — a $3,700/month difference that translates to over $1 million in required retirement savings. See where your state ranks and what it means for your financial plan.

Updated April 2026 Source: BLS CES 2024; MERIC Q3 2025

$6,430

U.S. Avg Monthly Expenses

$7,200

Highest: Hawaii

$3,500

Lowest: Mississippi

$3,700/mo

Cost Gap: High vs. Low

National Breakdown

Where the Average U.S. Household Spends Its Money (2024)

Category	Annual Average	Monthly Average	% of Total	50/30/20 Bucket
Housing	$27,860	$2,321	34.9%	Needs
Transportation	$14,570	$1,214	18.3%	Needs
Food	$12,170	$1,014	15.3%	Needs (groceries) / Wants (dining)
Personal Insurance & Pensions	$8,720	$727	10.9%	Savings
Healthcare	$5,190	$432	6.5%	Needs
Entertainment	$4,590	$383	5.8%	Wants
Clothing	$2,000	$167	2.5%	Needs/Wants
Other	$4,958	$413	6.2%	Mixed
Total	$77,158	$6,430	100%	—

Source: Bureau of Labor Statistics, Consumer Expenditure Survey 2024 (bls.gov/cex). National average across all consumer units.

State Data

Monthly Expenses by State — All 50 States

State	Monthly Expenses	Annual Total	Housing /mo	Food /mo	Transport /mo	Health care/mo	Min. Savings Target
Mississippi	$3,500	$42,000	$1,600	$600	$540	$290	$537K
Arkansas	$3,600	$43,200	$1,650	$620	$560	$295	$534K
West Virginia	$3,650	$43,800	$1,620	$630	$570	$305	$558K
Alabama	$3,700	$44,400	$1,680	$625	$550	$295	$582K
Oklahoma	$3,750	$45,000	$1,700	$640	$580	$300	$573K
Kentucky	$3,780	$45,360	$1,710	$635	$575	$300	$570K
Kansas	$3,800	$45,600	$1,720	$650	$585	$310	$590K
Louisiana	$3,820	$45,840	$1,730	$655	$590	$305	$580K
Indiana	$3,850	$46,200	$1,760	$660	$600	$315	$740K
Iowa	$3,900	$46,800	$1,780	$670	$610	$320	$730K
Missouri	$3,930	$47,160	$1,800	$668	$618	$322	$613K
Tennessee	$3,950	$47,400	$1,820	$665	$620	$310	$613K
South Dakota	$3,970	$47,640	$1,790	$672	$630	$335	$612K
Nebraska	$4,000	$48,000	$1,810	$675	$635	$330	$625K
North Dakota	$4,020	$48,240	$1,820	$678	$640	$340	$630K
Wyoming	$4,050	$48,600	$1,840	$680	$650	$345	$635K
Michigan	$4,080	$48,960	$1,860	$685	$655	$340	$650K
Ohio	$4,100	$49,200	$1,870	$690	$660	$335	$648K
New Mexico	$4,130	$49,560	$1,880	$695	$660	$350	$660K
Georgia	$4,180	$50,160	$1,910	$705	$670	$345	$670K
South Carolina	$4,200	$50,400	$1,920	$708	$672	$348	$672K
North Carolina	$4,250	$51,000	$1,950	$715	$680	$355	$685K
Texas	$4,350	$52,200	$1,990	$730	$710	$360	$700K
Wisconsin	$4,380	$52,560	$2,000	$735	$715	$365	$715K
Idaho	$4,420	$53,040	$2,020	$740	$720	$370	$720K
Minnesota	$4,500	$54,000	$2,060	$755	$740	$380	$740K
Arizona	$4,530	$54,360	$2,080	$760	$745	$375	$745K
Illinois	$4,580	$54,960	$2,100	$768	$752	$382	$760K
Nevada	$4,620	$55,440	$2,120	$775	$760	$385	$768K
Pennsylvania	$4,680	$56,160	$2,150	$785	$770	$390	$780K
Virginia	$4,750	$57,000	$2,180	$795	$785	$395	$795K
Florida	$4,800	$57,600	$2,210	$800	$790	$400	$808K
Delaware	$4,850	$58,200	$2,240	$810	$800	$405	$820K
Montana	$4,880	$58,560	$2,250	$815	$805	$410	$825K
Utah	$4,950	$59,400	$2,270	$828	$820	$415	$840K
Colorado	$5,050	$60,600	$2,320	$845	$840	$420	$860K
Maine	$5,100	$61,200	$2,340	$855	$848	$420	$862K
Vermont	$5,100	$61,200	$2,350	$855	$850	$425	$868K
New Hampshire	$5,150	$61,800	$2,360	$862	$858	$428	$875K
Alaska	$5,200	$62,400	$2,380	$870	$870	$435	$885K
Rhode Island	$5,250	$63,000	$2,400	$880	$875	$440	$895K
National Average	$5,400	$64,800	$2,321	$1,014	$1,214	$432	$877K
Oregon	$5,350	$64,200	$2,440	$898	$890	$448	$912K
Washington	$5,500	$66,000	$2,510	$920	$912	$455	$940K
Maryland	$5,600	$67,200	$2,560	$940	$930	$465	$960K
Connecticut	$5,750	$69,000	$2,620	$960	$950	$475	$990K
New Jersey	$5,800	$69,600	$2,650	$970	$960	$480	$1.00M
New York	$6,500	$78,000	$3,100	$1,180	$900	$505	$1.43M
California	$6,800	$81,600	$3,200	$1,200	$1,100	$520	$1.49M
Massachusetts	$7,000	$84,000	$3,400	$1,220	$950	$530	$1.61M
Hawaii	$7,200	$86,400	$3,600	$1,350	$980	$570	$2.61M

Sources: BLS CES 2024 adjusted by MERIC Q3 2025 Cost of Living Index. Housing includes rent/mortgage, utilities, insurance. Min. savings = (annual expenses − avg SS $24,894) ÷ 0.04. Figures are estimates.

Frequently Asked Questions

What is the average monthly expense for an American household?+

What is the biggest monthly expense for most households?+

How does cost of living affect how much I need to save for retirement?+

What is a good monthly budget?+

See Your State-Adjusted Retirement Number

Plootus calculates your exact retirement number based on your actual monthly spending and state — not national averages that may be wildly off for you.

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📚 Sources

Bureau of Labor Statistics, Consumer Expenditure Survey 2024 (bls.gov/cex)
Missouri Economic Research and Information Center (MERIC), Cost of Living Index Q3 2025
U.S. Bureau of Economic Analysis, Personal Consumption Expenditures 2024
Consumer Financial Protection Bureau, 50/30/20 Budget Rule
Plootus Research 2026

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Average Monthly Expenses by State 2026: Cost of Living Comparison

Where the Average U.S. Household Spends Its Money (2024)

Monthly Expenses by State — All 50 States

Frequently Asked Questions

See Your State-Adjusted Retirement Number

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