Average Salary by State in 2025 (Adjusted for Cost of Living)
A $70,000 salary in Mississippi goes much further than $70,000 in California. That is why looking at nominal salaries alone can be misleading. This guide ranks all 50 states by average salary adjusted for local cost of living, showing you where your paycheck delivers the most real purchasing power in 2025.
All 50 States Ranked by Adjusted Salary
| Rank | State | Avg Salary | COL Index | Adjusted Salary |
|---|---|---|---|---|
| 1 | Minnesota (MN) | $65,100 | 97.7 | $66,633 |
| 2 | Illinois (IL) | $63,200 | 95.1 | $66,456 |
| 3 | Washington (WA) | $75,900 | 115.8High | $65,544 |
| 4 | Colorado (CO) | $68,500 | 105.0 | $65,238 |
| 5 | Virginia (VA) | $65,800 | 101.8 | $64,637 |
| 6 | Texas (TX) | $59,300 | 93.9 | $63,152 |
| 7 | Georgia (GA) | $57,600 | 93.4 | $61,670 |
| 8 | New Jersey (NJ) | $70,300 | 115.2High | $61,024 |
| 9 | Michigan (MI) | $56,800 | 93.3 | $60,879 |
| 10 | Kansas (KS) | $53,800 | 88.8Low | $60,586 |
| 11 | Missouri (MO) | $54,300 | 89.8Low | $60,468 |
| 12 | Iowa (IA) | $53,600 | 89.0Low | $60,225 |
| 13 | Indiana (IN) | $54,100 | 90.5 | $59,779 |
| 14 | Tennessee (TN) | $54,500 | 91.4 | $59,628 |
| 15 | North Carolina (NC) | $57,100 | 95.8 | $59,603 |
| 16 | Nebraska (NE) | $54,700 | 91.8 | $59,586 |
| 17 | Ohio (OH) | $55,400 | 93.3 | $59,378 |
| 18 | Pennsylvania (PA) | $59,400 | 100.1 | $59,341 |
| 19 | Alabama (AL) | $52,200 | 88.1Low | $59,251 |
| 20 | Oklahoma (OK) | $51,200 | 86.5Low | $59,191 |
| 21 | Wisconsin (WI) | $56,500 | 96.1 | $58,793 |
| 22 | Connecticut (CT) | $71,300 | 121.4High | $58,731 |
| 23 | Delaware (DE) | $60,100 | 103.1 | $58,293 |
| 24 | North Dakota (ND) | $55,700 | 96.5 | $57,720 |
| 25 | Arizona (AZ) | $58,900 | 102.2 | $57,632 |
| 26 | Arkansas (AR) | $49,800 | 86.9Low | $57,307 |
| 27 | Utah (UT) | $58,100 | 101.5 | $57,241 |
| 28 | Maryland (MD) | $67,400 | 118.7High | $56,782 |
| 29 | Massachusetts (MA) | $76,600 | 135.0High | $56,741 |
| 30 | Kentucky (KY) | $51,100 | 90.1 | $56,715 |
| 31 | Louisiana (LA) | $51,600 | 91.0 | $56,703 |
| 32 | Rhode Island (RI) | $61,100 | 107.9 | $56,627 |
| 33 | South Carolina (SC) | $52,900 | 94.2 | $56,157 |
| 34 | New Hampshire (NH) | $63,200 | 112.6High | $56,128 |
| 35 | Wyoming (WY) | $54,100 | 96.4 | $56,120 |
| 36 | Mississippi (MS) | $46,300 | 83.3Low | $55,582 |
| 37 | Oregon (OR) | $62,700 | 113.1High | $55,438 |
| 38 | Florida (FL) | $56,800 | 102.8 | $55,253 |
| 39 | South Dakota (SD) | $50,700 | 92.3 | $54,930 |
| 40 | New Mexico (NM) | $52,100 | 95.7 | $54,441 |
| 41 | Idaho (ID) | $52,400 | 96.6 | $54,244 |
| 42 | Nevada (NV) | $56,200 | 104.2 | $53,935 |
| 43 | New York (NY) | $74,800 | 139.1High | $53,774 |
| 44 | West Virginia (WV) | $47,300 | 88.6Low | $53,386 |
| 45 | Montana (MT) | $52,800 | 99.2 | $53,226 |
| 46 | California (CA) | $75,200 | 142.2High | $52,883 |
| 47 | Vermont (VT) | $56,100 | 113.5High | $49,427 |
| 48 | Maine (ME) | $55,300 | 112.1High | $49,331 |
| 49 | Alaska (AK) | $62,500 | 127.0High | $49,213 |
| 50 | Hawaii (HI) | $62,100 | 192.9High | $32,193 |
Key Findings
High-Salary States Are Not Always the Best Value
California, New York, and Massachusetts top the charts for nominal salaries, but their high costs of living significantly erode purchasing power. A software engineer earning $120,000 in San Francisco may have less disposable income than one earning $90,000 in Austin or Raleigh after accounting for housing costs alone.
The Midwest and South Offer Strong Value
States like Illinois, Georgia, Texas, and Indiana combine reasonable salaries with significantly below-average costs of living. Workers in these states often enjoy lower housing costs, no state income tax (in some cases), and shorter commute times, all of which contribute to a higher quality of life.
Remote Work Has Changed the Equation
The rise of remote work means more Americans can earn coastal salaries while living in lower-cost areas. Workers earning a San Francisco tech salary from a base in Tennessee or Georgia enjoy dramatically more purchasing power. However, some employers are adjusting pay based on employee location.
State Taxes Matter
This analysis uses pre-tax salary data. States with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) offer an additional advantage not fully captured by the cost of living index. Use our take-home pay calculator to see exactly how much you keep after taxes in each state.
Tips for Evaluating a State Move
- Compare your specific occupation. Statewide averages include all workers. Salaries for your profession may differ from the state average. Check our individual salary pages for occupation-specific state data.
- Factor in housing specifically. Housing is the largest cost of living variable. A city with a low overall COL index may still have expensive neighborhoods. Research actual home prices and rents in the specific area you are considering.
- Consider career growth potential. Some states offer lower salaries today but are rapidly growing job markets. Texas, North Carolina, Georgia, and Colorado have all seen strong job growth that drives future salary increases.
- Account for the full tax picture. State income tax is just one piece. Property tax rates, sales tax, and local taxes also affect your bottom line. Some no-income-tax states compensate with higher property or sales taxes.
- Do not underestimate quality of life. Climate, proximity to family, school quality, healthcare access, and cultural amenities all affect your day-to-day happiness and should be weighed alongside financial factors.
Frequently Asked Questions
Which state has the highest average salary?
Massachusetts has the highest average salary at approximately $76,600 per year, followed closely by Washington ($75,900), California ($75,200), and New York ($74,800). However, when adjusted for cost of living, the ranking shifts significantly, with states like Washington, Colorado, and Virginia offering better real purchasing power.
What does 'cost of living adjusted salary' mean?
Cost of living adjusted salary shows what your paycheck is actually worth after accounting for local prices for housing, food, transportation, and other essentials. A $75,000 salary in California (where the cost of living index is 142) has the same purchasing power as about $52,800 in an average-cost state. We calculate it by dividing the nominal salary by the cost of living index and multiplying by 100.
Which state has the best salary-to-cost-of-living ratio?
States in the Midwest and South consistently offer the best salary-to-cost-of-living ratios. Washington, Virginia, Minnesota, and Colorado rank among the top when salaries are adjusted for local living costs. These states combine above-average wages with moderate to below-average costs, giving residents more real purchasing power.
Why are salaries higher in some states?
State salary differences reflect several factors: the concentration of high-paying industries (tech in California and Washington, finance in New York), local cost of living (employers must pay more to attract talent in expensive areas), state economic policies, union prevalence, and labor market competition. Higher nominal salaries do not always mean better financial outcomes.
Should I move to a higher-paying state?
Not necessarily. A higher nominal salary may be offset or even negated by higher housing costs, state income taxes, and general cost of living. Consider the adjusted salary figures in this guide, and use our cost of living calculator to compare specific scenarios. Also factor in quality of life, proximity to family, job opportunities in your field, and state tax burden.