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Since 1986, The Economist has published its Big Mac Index. The index is a lighthearted way of viewing purchasing power across national borders. The theory is that a McDonald’s Big Mac uses the same ingredients and labor from one country to another, so when prices are compared in dollar terms, the differences in the purchasing power of money between locations is easy to see. In the latest reading, Russia has the cheapest Big Mac, at only $1.65. Fluctuating currency valuations can have a big impact on the index when dealing with different countries.
When comparing the U.S. states, however, currency effects are not a factor. You can see via the Cost of Living Index below that different states can have vastly different costs. Is it any wonder so many Americans are moving for retirement from high tax, high cost states to those with low taxes and low costs of living? See where your state shows up on the 2018 Annual Cost of Living Average released by the Missouri Economic Research and Information Center (MERIC).
If you’re about to retire, and you’re looking for a change, consider doing a little Big Mac research of your own. First visit the McDonald’s in your high tax home town, then when you’re scoping out your possible retirement destination, compare the price of a Big Mac there. It’s not very scientific, but it could be fun.
| 2018 Annual Cost of Living Average – MERIC | ||||||||
| State | Rank | Index | Grocery | Housing | Transportation | Utilities | Health Care | Misc |
| Mississippi | 1 | 85.7 | 91.4 | 70.8 | 91.6 | 90.6 | 91.4 | 94.2 |
| Oklahoma | 2 | 88.1 | 92.5 | 74.6 | 92.7 | 95.7 | 95.4 | 95.5 |
| Arkansas | 3 | 88.4 | 96.5 | 76.4 | 90.9 | 91.1 | 85.9 | 91.2 |
| Missouri | 4 | 88.8 | 93.0 | 73.5 | 93.8 | 99.5 | 98.0 | 98.0 |
| Michigan | 5 | 89.3 | 94.6 | 78.0 | 101.0 | 96.6 | 92.8 | 85.9 |
| Alabama | 6 | 89.5 | 97.0 | 72.4 | 92.1 | 104.6 | 87.9 | 96.0 |
| Tennessee | 7 | 89.5 | 94.1 | 80.3 | 90.8 | 95.2 | 88.0 | 93.9 |
| Kansas | 8 | 89.7 | 93.7 | 76.5 | 95.8 | 102.4 | 96.5 | 93.4 |
| Indiana | 9 | 90.1 | 96.6 | 76.7 | 97.2 | 96.6 | 95.2 | 92.0 |
| Wyoming | 10 | 90.5 | 92.6 | 79.8 | 95.5 | 92.8 | 94.5 | 102.2 |
| Georgia | 11 | 91.2 | 97.7 | 76.8 | 97.4 | 92.2 | 96.9 | 98.9 |
| Texas | 12 | 91.3 | 94.0 | 84.3 | 94.4 | 101.0 | 95.2 | 89.9 |
| Iowa | 13 | 91.8 | 95.4 | 80.3 | 97.9 | 99.7 | 97.1 | 96.3 |
| Kentucky | 14 | 91.8 | 99.4 | 80.9 | 98.3 | 96.2 | 90.9 | 88.9 |
| New Mexico | 15 | 92.8 | 94.2 | 84.1 | 96.2 | 90.0 | 102.2 | 104.5 |
| Ohio | 16 | 92.8 | 100.8 | 77.2 | 101.4 | 93.2 | 96.1 | 99.2 |
| Nebraska | 17 | 93.3 | 94.6 | 88.4 | 99.9 | 91.2 | 98.9 | 95.4 |
| Louisiana | 18 | 93.6 | 97.0 | 86.8 | 96.6 | 89.6 | 94.9 | 100.4 |
| North Carolina | 19 | 94.0 | 100.5 | 83.0 | 93.9 | 95.3 | 107.5 | 96.0 |
| Idaho | 20 | 94.2 | 98.0 | 86.9 | 107.9 | 87.6 | 100.2 | 93.1 |
| West Virginia | 21 | 94.7 | 103.1 | 88.6 | 87.1 | 89.3 | 91.6 | 96.0 |
| Illinois | 22 | 95.7 | 98.6 | 88.2 | 104.2 | 96.7 | 100.3 | 97.0 |
| Wisconsin | 23 | 95.8 | 97.7 | 88.8 | 101.7 | 96.6 | 112.9 | 96.4 |
| Arizona | 24 | 97.7 | 94.8 | 95.6 | 103.3 | 107.7 | 95.8 | 99.6 |
| Utah | 25 | 98.2 | 99.8 | 95.0 | 103.3 | 93.5 | 96.8 | 101.0 |
| South Carolina | 26 | 98.3 | 104.7 | 87.4 | 92.7 | 108.4 | 101.0 | 101.8 |
| South Dakota | 27 | 98.5 | 99.0 | 100.5 | 92.3 | 92.2 | 105.1 | 99.4 |
| Pennsylvania | 28 | 98.6 | 98.9 | 93.1 | 107.1 | 106.8 | 92.3 | 100.4 |
| North Dakota | 29 | 98.7 | 98.7 | 94.4 | 104.1 | 92.0 | 111.8 | 105.1 |
| Florida | 30 | 98.9 | 98.2 | 96.1 | 99.2 | 101.3 | 95.5 | 106.2 |
| Minnesota | 31 | 101.5 | 109.1 | 89.4 | 102.6 | 98.1 | 111.4 | 106.6 |
| Virginia | 32 | 102.0 | 100.3 | 111.9 | 89.4 | 97.7 | 100.4 | 96.6 |
| Montana | 33 | 104.0 | 104.6 | 110.5 | 95.4 | 86.6 | 105.4 | 105.5 |
| Colorado | 34 | 105.5 | 100.2 | 120.7 | 104.8 | 86.2 | 102.2 | 100.6 |
| Delaware | 35 | 106.0 | 112.0 | 101.4 | 103.9 | 100.0 | 99.3 | 108.0 |
| Nevada | 36 | 108.3 | 103.3 | 119.2 | 110.3 | 88.9 | 107.4 | 109.2 |
| New Hampshire | 37 | 109.3 | 114.2 | 106.9 | 97.4 | 115.0 | 117.1 | 103.8 |
| Washington | 38 | 109.5 | 108.4 | 114.4 | 114.1 | 90.6 | 119.0 | 108.1 |
| Maine | 39 | 117.2 | 117.7 | 125.4 | 104.6 | 113.5 | 116.6 | 109.6 |
| Vermont | 40 | 118.7 | 105.8 | 144.1 | 110.8 | 117.6 | 102.7 | 108.1 |
| New Jersey | 41 | 122.5 | 110.9 | 155.0 | 110.3 | 107.0 | 105.1 | 105.4 |
| Rhode Island | 42 | 122.5 | 118.1 | 142.1 | 102.3 | 121.2 | 111.0 | 109.4 |
| Connecticut | 43 | 128.8 | 121.5 | 155.4 | 116.3 | 113.7 | 118.8 | 111.1 |
| Alaska | 44 | 130.6 | 117.0 | 138.1 | 119.8 | 150.8 | 146.3 | 138.8 |
| Oregon | 45 | 131.2 | 112.9 | 182.2 | 116.8 | 88.1 | 111.2 | 112.3 |
| Maryland | 46 | 131.3 | 109.0 | 189.9 | 106.7 | 105.9 | 91.1 | 107.6 |
| Massachusetts | 47 | 133.8 | 120.4 | 174.4 | 111.9 | 111.6 | 120.8 | 113.9 |
| New York | 48 | 135.7 | 112.7 | 197.1 | 107.9 | 105.5 | 103.9 | 110.6 |
| California | 49 | 138.7 | 111.2 | 196.1 | 122.0 | 121.6 | 110.8 | 116.6 |
| District of Columbia | 50 | 162.9 | 127.7 | 268.2 | 102.7 | 115.6 | 99.6 | 116.9 |
| Hawaii | 51 | 190.1 | 124.2 | 311.0 | 140.7 | 172.1 | 116.3 | 165.9 |
| US Average | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |