Cost of Living in the United States
The US has extreme regional cost variations. Your location choice will dramatically impact your financial life.
Monthly Budget Overview
| Expense | High-Cost City (SF/NYC) | Mid-Cost City (Austin/Denver) | Low-Cost City (Columbus/Phoenix) |
|---|---|---|---|
| Rent (1BR) | $3,000-4,500 | $1,500-2,200 | $1,000-1,500 |
| Utilities | $150-250 | $120-180 | $100-150 |
| Groceries | $500-700 | $400-500 | $300-400 |
| Health Insurance | $300-600 | $300-600 | $300-600 |
| Transportation | $150 (transit) or $600 (car) | $400-600 (car needed) | $350-500 (car needed) |
| Dining/Entertainment | $500-1,000 | $300-600 | $200-400 |
Key Cost Factors
Housing dominates most budgets. The general rule is spending no more than 30% of gross income on rent, but this is nearly impossible in expensive metros.
Healthcare costs are unique to the US. Employer plans typically cost $200-500/month for individuals, with deductibles of $1,000-6,000. Without insurance, a simple ER visit can cost $3,000+.
Transportation varies by location. NYC has excellent public transit ($127/month unlimited), but most cities require a car ($400-800/month including payment, insurance, gas, maintenance).
Taxes include federal (10-37%), state (0-13.3%), and local income taxes. States like Texas, Florida, and Washington have no state income tax.
Tips for Managing Costs
- Consider cities with strong job markets but lower costs: Austin, Raleigh, Nashville, Salt Lake City
- Get an employer with good health benefits - it's worth $10-15K/year
- Build credit history immediately to qualify for better rates and housing
- Use rewards credit cards strategically for cash back on all purchases
Pro Tips
- •Location is everything - same job can mean vastly different quality of life
- •Health insurance through employer is almost always the best deal
- •Build credit immediately - it affects housing, car loans, and more
- •No state income tax in TX, FL, WA, NV, WY, SD, AK (+ NH, TN on wages)
Have questions about cost of living in United States?