What Is the #1 Expensive State to Live In?
Hawaii is the top spot in this list. When looking at broad cost-of-living data across the country, Hawaii consistently ranks number one. Massachusetts also has major living costs — but it is located slightly lower on the list.
Why does Hawaii rank number 1?
The answer is — high everyday expenses. Housing items take the major share of household budgets. Daily life cost level is well above the national average. Recent state cost research confirms this trend.
A 2025 cost-of-living index rates Hawaii at 183.9 — the highest in the nation, as presented below.
| State | 2025 index |
|---|---|
| Hawaii | 183.9 |
| Massachusetts | 148.5 |
| California | 143.1 |
| Alaska | 126.7 |
| New York | 125.8 |
Why does Massachusetts appear on the high-cost research?
It’s true that MA tends to come up because it is one of the priciest states in the country — and some studies use a distinct yardstick. For example, a 2025 study on the salary needed to live comfortably found Hawaii the highest for a single adult. Yet Massachusetts is the number 1 state for a family with 2 working adults & 2 children.
Overall statewide cost of living — Hawaii is number 1
Specific household budget — another study may put Massachusetts first
Does Massachusetts have the highest local tax?
No. The high price of housing, insurance, and daily items may stand out, but Massachusetts personal income tax is imposed at the state level, not by cities or towns. Most taxable income is taxed at 5%, with an additional 4% surtax on taxable income above the annual threshold.
For Boston-area residents, the high price of housing and insurance expenses alongside the cost of daily items might be noticed, but the income tax is still a flat statewide system — not a local one.
The distinction
People frequently mix up 3 separate issues:
cost of living
state income tax
local property tax
Those amounts don’t always move together. A person may live in a costly state because housing is steep — not because the income tax rate is unusually high.
Dimov Associates supports MA & beyond
If you require assessing the Massachusetts costs, residency status, or filing requirements after a move, reach out to Dimov Associates today. We are ready to look at the state taxation, income sourcing, and data for strong documentation.
