The U.S. state most often ranked as having the lowest cost of living right now is Oklahoma , with states like Mississippi, Arkansas, West Virginia, and Alabama also consistently appearing at the very bottom of cost-of-living rankings.

Quick Scoop

  • Oklahoma is frequently listed as the cheapest state, with a cost-of-living index in the mid‑80s (around 15% below the U.S. average) and relatively low housing, utilities, and everyday expenses.
  • Mississippi, Arkansas, West Virginia, and Alabama also have very low indexes, mainly because housing costs and property taxes are far below the national average.
  • Rankings vary slightly by source and year, but if you are asking “which state has the lowest cost of living,” Oklahoma is the most common current answer, with those Southern and Appalachian states right behind it.

Why these states are so cheap

  • Housing is the big driver : Median home prices and rents in these states can be tens of thousands of dollars lower than the U.S. median, often 25–40% cheaper than national norms.
  • Taxes and utilities help too : Some have low property taxes and relatively affordable utilities, so monthly budgets stay lower even when incomes are modest.

Simple takeaway

If you are purely chasing the lowest cost of living , look first at Oklahoma , then at Mississippi, Arkansas, West Virginia, and Alabama as strong alternatives, and compare specific cities since costs can vary a lot within each state.

Information gathered from public forums or data available on the internet and portrayed here.