Federal law stipulates that American workers must be compensated at least $7.25 per hour in any occupation, no matter where they live. While the minimum wage is intended to ensure a certain standard of living for members of the workforce, it ignores substantial variations in cost of living across the country. In some states, a dollar goes much further than in others.
Using regional price parity, an approximation of the average price of goods and services in a certain area compared to average prices nationwide, 24/7 Wall St. calculated the value of a dollar in every state.
Cost of living in a given area is closely tied to wages in the area. Generally, in places where incomes are higher, goods and services also cost more. For example, in New Jersey, per capita income is about $75,000, or about $15,500 more than the national average. Partially as a result, based on purchasing power, a dollar is only worth about 84 cents in the Garden State.
It is important to note, however, that even when accounting for the reduced purchasing power of a dollar in states with the highest incomes, residents of these states still tend to have higher than average incomes. In nine of the 10 states where a dollar is worth the least, cost of living-adjusted incomes are still higher than the national average of $59,729. Here is a look at the income it takes to be considered rich in every state.
For most Americans, housing costs account for a substantial share of living expenses. As a result, areas where a dollar has lower than average purchasing power, housing tends to be relatively expensive — and in areas where a dollar goes further than average, housing tends to be cheaper. Here is a look at the cost of a typical home in every state.
Click here to see the value of a dollar in every state.
Click here to see our methodology.
Alabama
> Value of a dollar: $1.14 (3rd highest)
> Annual personal income: $46,908 (5th lowest)
> Cost of living-adjusted income: $53,569 (9th lowest)
> Median home value: $154,000 (6th lowest)
[in-text-ad]
Alaska
> Value of a dollar: $0.95 (9th lowest)
> Annual personal income: $64,780 (9th highest)
> Cost of living-adjusted income: $61,476 (18th highest)
> Median home value: $281,200 (15th highest)
24/7 Wall St.
Arizona
> Value of a dollar: $1.04 (25th lowest)
> Annual personal income: $48,950 (9th lowest)
> Cost of living-adjusted income: $50,761 (4th lowest)
> Median home value: $255,900 (18th highest)
Arkansas
> Value of a dollar: $1.15 (2nd highest)
> Annual personal income: $47,109 (6th lowest)
> Cost of living-adjusted income: $54,317 (12th lowest)
> Median home value: $136,200 (3rd lowest)
[in-text-ad-2]
California
> Value of a dollar: $0.84 (2nd lowest)
> Annual personal income: $71,480 (5th highest)
> Cost of living-adjusted income: $59,757 (22nd highest)
> Median home value: $568,500 (2nd highest)
Colorado
> Value of a dollar: $0.98 (13th lowest)
> Annual personal income: $63,522 (10th highest)
> Cost of living-adjusted income: $62,315 (14th highest)
> Median home value: $394,600 (4th highest)
[in-text-ad]
Connecticut
> Value of a dollar: $0.95 (10th lowest)
> Annual personal income: $79,771 (the highest)
> Cost of living-adjusted income: $75,782 (the highest)
> Median home value: $280,700 (16th highest)
Delaware
> Value of a dollar: $1.01 (17th lowest)
> Annual personal income: $56,768 (22nd highest)
> Cost of living-adjusted income: $57,109 (25th highest)
> Median home value: $261,700 (17th highest)
Florida
> Value of a dollar: $0.99 (16th lowest)
> Annual personal income: $55,337 (25th lowest)
> Cost of living-adjusted income: $54,784 (15th lowest)
> Median home value: $245,100 (22nd highest)
[in-text-ad-2]
Georgia
> Value of a dollar: $1.07 (24th highest)
> Annual personal income: $51,165 (14th lowest)
> Cost of living-adjusted income: $54,644 (14th lowest)
> Median home value: $202,500 (24th lowest)
Hawaii
> Value of a dollar: $0.81 (the lowest)
> Annual personal income: $60,729 (17th highest)
> Cost of living-adjusted income: $49,008 (2nd lowest)
> Median home value: $669,200 (the highest)
[in-text-ad]
Idaho
> Value of a dollar: $1.08 (21st highest)
> Annual personal income: $48,616 (8th lowest)
> Cost of living-adjusted income: $52,408 (8th lowest)
> Median home value: $255,200 (19th highest)
24/7 Wall St.
Illinois
> Value of a dollar: $1.03 (21st lowest)
> Annual personal income: $62,977 (12th highest)
> Cost of living-adjusted income: $64,614 (5th highest)
> Median home value: $209,100 (25th highest)
Indiana
> Value of a dollar: $1.11 (10th highest)
> Annual personal income: $51,340 (16th lowest)
> Cost of living-adjusted income: $57,141 (24th highest)
> Median home value: $156,000 (7th lowest)
[in-text-ad-2]
Iowa
> Value of a dollar: $1.11 (12th highest)
> Annual personal income: $55,218 (24th lowest)
> Cost of living-adjusted income: $61,292 (19th highest)
> Median home value: $158,900 (9th lowest)
Kansas
> Value of a dollar: $1.11 (13th highest)
> Annual personal income: $56,073 (24th highest)
> Cost of living-adjusted income: $62,129 (15th highest)
> Median home value: $163,200 (10th lowest)
[in-text-ad]
Kentucky
> Value of a dollar: $1.13 (6th highest)
> Annual personal income: $46,507 (4th lowest)
> Cost of living-adjusted income: $52,367 (7th lowest)
> Median home value: $151,700 (5th lowest)
24/7 Wall St.
Louisiana
> Value of a dollar: $1.12 (8th highest)
> Annual personal income: $50,037 (11th lowest)
> Cost of living-adjusted income: $56,091 (20th lowest)
> Median home value: $172,100 (13th lowest)
Maine
> Value of a dollar: $1.01 (18th lowest)
> Annual personal income: $54,225 (22nd lowest)
> Cost of living-adjusted income: $54,605 (13th lowest)
> Median home value: $200,500 (23rd lowest)
[in-text-ad-2]
Maryland
> Value of a dollar: $0.92 (7th lowest)
> Annual personal income: $68,258 (7th highest)
> Cost of living-adjusted income: $63,002 (11th highest)
> Median home value: $332,500 (9th highest)
Massachusetts
> Value of a dollar: $0.90 (5th lowest)
> Annual personal income: $79,721 (2nd highest)
> Cost of living-adjusted income: $71,430 (2nd highest)
> Median home value: $418,600 (3rd highest)
[in-text-ad]
Michigan
> Value of a dollar: $1.08 (22nd highest)
> Annual personal income: $52,987 (18th lowest)
> Cost of living-adjusted income: $57,067 (25th lowest)
> Median home value: $169,600 (12th lowest)
Minnesota
> Value of a dollar: $1.02 (19th lowest)
> Annual personal income: $61,540 (15th highest)
> Cost of living-adjusted income: $62,771 (12th highest)
> Median home value: $246,700 (21st highest)
Mississippi
> Value of a dollar: $1.16 (the highest)
> Annual personal income: $41,745 (the lowest)
> Cost of living-adjusted income: $48,257 (the lowest)
> Median home value: $128,200 (2nd lowest)
[in-text-ad-2]
Missouri
> Value of a dollar: $1.11 (10th highest)
> Annual personal income: $51,177 (15th lowest)
> Cost of living-adjusted income: $56,960 (24th lowest)
> Median home value: $168,000 (11th lowest)
Montana
> Value of a dollar: $1.07 (25th highest)
> Annual personal income: $53,329 (20th lowest)
> Cost of living-adjusted income: $56,795 (22nd lowest)
> Median home value: $253,600 (20th highest)
[in-text-ad]
Nebraska
> Value of a dollar: $1.11 (15th highest)
> Annual personal income: $57,942 (20th highest)
> Cost of living-adjusted income: $64,026 (8th highest)
> Median home value: $172,700 (14th lowest)
Nevada
> Value of a dollar: $1.03 (21st lowest)
> Annual personal income: $53,635 (21st lowest)
> Cost of living-adjusted income: $55,030 (16th lowest)
> Median home value: $317,800 (11th highest)
New Hampshire
> Value of a dollar: $0.94 (8th lowest)
> Annual personal income: $66,418 (8th highest)
> Cost of living-adjusted income: $62,101 (16th highest)
> Median home value: $281,400 (14th highest)
[in-text-ad-2]
New Jersey
> Value of a dollar: $0.84 (4th lowest)
> Annual personal income: $75,245 (4th highest)
> Cost of living-adjusted income: $63,206 (10th highest)
> Median home value: $348,800 (7th highest)
New Mexico
> Value of a dollar: $1.09 (17th highest)
> Annual personal income: $45,803 (3rd lowest)
> Cost of living-adjusted income: $49,879 (3rd lowest)
> Median home value: $180,900 (16th lowest)
[in-text-ad]
New York
> Value of a dollar: $0.84 (3rd lowest)
> Annual personal income: $75,548 (3rd highest)
> Cost of living-adjusted income: $63,234 (9th highest)
> Median home value: $338,700 (8th highest)
North Carolina
> Value of a dollar: $1.08 (19th highest)
> Annual personal income: $50,086 (12th lowest)
> Cost of living-adjusted income: $54,243 (11th lowest)
> Median home value: $193,200 (20th lowest)
North Dakota
> Value of a dollar: $1.11 (14th highest)
> Annual personal income: $59,388 (18th highest)
> Cost of living-adjusted income: $65,743 (4th highest)
> Median home value: $205,400 (25th lowest)
[in-text-ad-2]
Ohio
> Value of a dollar: $1.12 (9th highest)
> Annual personal income: $53,296 (19th lowest)
> Cost of living-adjusted income: $59,478 (23rd highest)
> Median home value: $157,200 (8th lowest)
Oklahoma
> Value of a dollar: $1.13 (5th highest)
> Annual personal income: $49,249 (10th lowest)
> Cost of living-adjusted income: $55,553 (18th lowest)
> Median home value: $147,000 (4th lowest)
[in-text-ad]
Oregon
> Value of a dollar: $0.98 (12th lowest)
> Annual personal income: $56,765 (23rd highest)
> Cost of living-adjusted income: $55,516 (17th lowest)
> Median home value: $354,600 (6th highest)
Pennsylvania
> Value of a dollar: $1.03 (22nd lowest)
> Annual personal income: $62,198 (14th highest)
> Cost of living-adjusted income: $64,064 (7th highest)
> Median home value: $192,600 (19th lowest)
Rhode Island
> Value of a dollar: $0.99 (15th lowest)
> Annual personal income: $60,837 (16th highest)
> Cost of living-adjusted income: $60,046 (20th highest)
> Median home value: $283,000 (13th highest)
[in-text-ad-2]
South Carolina
> Value of a dollar: $1.09 (18th highest)
> Annual personal income: $47,502 (7th lowest)
> Cost of living-adjusted income: $51,540 (6th lowest)
> Median home value: $179,800 (15th lowest)
South Dakota
> Value of a dollar: $1.12 (7th highest)
> Annual personal income: $57,273 (21st highest)
> Cost of living-adjusted income: $64,260 (6th highest)
> Median home value: $185,000 (17th lowest)
[in-text-ad]
Tennessee
> Value of a dollar: $1.10 (16th highest)
> Annual personal income: $50,547 (13th lowest)
> Cost of living-adjusted income: $55,753 (19th lowest)
> Median home value: $191,900 (18th lowest)
Texas
> Value of a dollar: $1.04 (24th lowest)
> Annual personal income: $54,841 (23rd lowest)
> Cost of living-adjusted income: $56,760 (21st lowest)
> Median home value: $200,400 (22nd lowest)
Utah
> Value of a dollar: $1.04 (24th lowest)
> Annual personal income: $52,251 (17th lowest)
> Cost of living-adjusted income: $54,080 (10th lowest)
> Median home value: $330,300 (10th highest)
[in-text-ad-2]
Vermont
> Value of a dollar: $0.97 (11th lowest)
> Annual personal income: $58,650 (19th highest)
> Cost of living-adjusted income: $56,832 (23rd lowest)
> Median home value: $233,200 (24th highest)
Virginia
> Value of a dollar: $0.99 (15th lowest)
> Annual personal income: $62,362 (13th highest)
> Cost of living-adjusted income: $61,551 (17th highest)
> Median home value: $288,800 (12th highest)
[in-text-ad]
Washington
> Value of a dollar: $0.92 (6th lowest)
> Annual personal income: $68,322 (6th highest)
> Cost of living-adjusted income: $62,583 (13th highest)
> Median home value: $387,600 (5th highest)
24/7 Wall St.
West Virginia
> Value of a dollar: $1.13 (4th highest)
> Annual personal income: $45,109 (2nd lowest)
> Cost of living-adjusted income: $50,928 (5th lowest)
> Median home value: $124,600 (the lowest)
Wisconsin
> Value of a dollar: $1.08 (20th highest)
> Annual personal income: $55,487 (25th highest)
> Cost of living-adjusted income: $59,981 (21st highest)
> Median home value: $197,200 (21st lowest)
[in-text-ad-2]
Wyoming
> Value of a dollar: $1.07 (23rd highest)
> Annual personal income: $63,263 (11th highest)
> Cost of living-adjusted income: $67,818 (3rd highest)
> Median home value: $235,200 (23rd highest)
Methodology:
To determine the value of a dollar in every state, 24/7 Wall St. reviewed data on regional price parity in 2019 from the Bureau of Economic Analysis. We calculated the value of a dollar in each state by dividing 100 (which represents the base value of $1.00) by every state’s relative price parity figure. We also reviewed the BEA’s per capita personal income data for all states in 2020. To arrive at the effective personal income value for every state, we divided the 2020 per-capita personal income figure by the 2019 regional price parity value. Median home values came from the 2019 U.S. Census Bureau’s American Community Survey and are one-year estimates.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
