Mississippi is the clear winner in this comparison, but if the Deep South is not your cup of tea, there are other states across the country worthy of consideration.

Cost of living is an important consideration when deciding to relocate to another city or state. Comparing states in terms of cost of living provides a gauge for whether a move will mean that lifestyle or budget changes are necessary.

Here are ten of the lowest cost of living states in 2021, based on categories of grocery, housing, utilities, transportation, and miscellaneous.

Mississippi

Mississippi has been consistently near the top of the rankings of states with the lowest cost of living for multiple years, and once again is at the top in 2021. One of the biggest reasons is that it has the lowest housing costs in the nation, both in terms of rent and home prices. 

This deep-south state comes in below average for every cost of living expense category. 

Here’s how Mississippi measures up to the other states in each category (with “1” being the lowest cost).

Mississippi cost of living national rankings:

• Overall – 1st
• Grocery – 4th
• Housing – 1st
• Utilities – 10th
• Transportation – 6th
• Miscellaneous – 7th

Arkansas

Another southern state, Arkansas, claims second place in the cost of living rankings by its low transportation and miscellaneous costs—both the lowest in the country.

Although Arkansas’ utility costs are higher compared to its other rankings, they’re still below the national average. 

Arkansas’ cost of living national rankings:

• Overall – 2nd
• Grocery – 6th
• Housing – 9th
• Utilities – 14th
• Transportation – 1st
• Miscellaneous – 1st

Oklahoma

The Sooner State is in the heart of the Midwest and comes in third in the overall cost of living. One of the factors that bring Oklahoma up in the overall rankings is its low housing cost, which ranks fourth. It’s also helped by cheap gasoline (the 2nd lowest in the country, due mostly to its low fuel taxes) and low transportation costs.

Like Arkansas, Oklahoma has slightly higher utility costs, but it still comes in below average nationally.

Oklahoma’s cost of living national rankings:

• Overall – 3rd
• Grocery – 12th
• Housing – 4th
• Utilities – 20th
• Transportation – 7th
• Miscellaneous – 10th

Missouri

Another heartland state, Missouri ranks second among US states in both housing and transportation costs, giving it the 4th overall lowest cost of living. Missouri also has the cheapest prices in the country at the gasoline pump.

Although its 30th ranking in utility costs stands out as a little high, it’s still about on par with the national average.

Missouri’s cost of living national rankings:

• Overall – 4th
• Grocery – 16th
• Housing – 2nd
• Utilities – 30th
• Transportation – 2nd
• Miscellaneous – 15th

New Mexico

Moving out West, we come to New Mexico with the 5th lowest cost of living. Due to its relative isolation, New Mexico’s grocery costs come in a bit high, just above the national average. Its miscellaneous costs are also high, but right on the average mark.

Nevertheless, its very low utility costs and relatively inexpensive transportation are enough to keep New Mexico one of the least expensive states to live in 2021.

New Mexico’s cost of living national rankings:

• Overall – 5th
• Grocery – 27th
• Housing – 13th
• Utilities – 4th
• Transportation – 11th
• Miscellaneous – 29th

Tennessee

Tennessee is another state that comes in below average in every cost of living category – with its miscellaneous costs ranking best at 2nd cheapest in the nation. Overall, these consistently low category rankings make Tennessee the 6th lowest cost of living state.

Although ranked 18th in utility costs, Tennessee is still below the national average in that category.

Tennessee’s cost of living national rankings:

• Overall – 6th
• Grocery – 9th
• Housing – 16th
• Utilities – 18th
• Transportation – 8th
• Miscellaneous – 2nd

Michigan

The first rust belt state in the rankings, Michigan is 7th lowest in overall cost of living. The biggest reason is that it has the 2nd lowest grocery costs in the nation.

Michigan is close to the national average in both utility prices and transportation, but still well below average housing and miscellaneous costs.

Michigan’s cost of living national rankings:

• Overall – 7th
• Grocery – 2nd
• Housing – 10th
• Utilities – 25th
• Transportation – 21st
• Miscellaneous – 9th

Kansas

Back to the midwest, Kansas comes in at 8th in lowest overall cost of living, owing chiefly to its low grocery and housing costs. Although its above-average utility costs stand out as some of the more expensive in the nation, its other low cost of living numbers make up for it.

The miscellaneous living costs in Kansas are also on the higher side, but still right on the national average.

Kansas’s cost of living national rankings:

• Overall – 8th
• Grocery – 5th
• Housing – 7th
• Utilities – 35th
• Transportation – 12th
• Miscellaneous – 26th

Georgia

Georgia’s cost of living situation is a bit more complicated due to the disparity in rent and home prices between its urban and rural areas, but its 8th lowest housing costs are still enough to land it at #9 overall.

With its other costs of living ranking at or below average, it’s still one of the least expensive states to live.

Georgia’s cost of living national rankings:

• Overall – 9th
• Grocery – 19th
• Housing – 8th
• Utilities – 17th
• Transportation – 22nd
• Miscellaneous – 24th

Wyoming

The state of Wyoming just squeaks in at 10th to round out the top ten lowest cost of living states in 2021, with its housing and utility costs both ranking in the top five in the country. 

The rest of Wyoming’s category rankings are not as impressive, but still right at the national averages for each category.

Wyoming’s cost of living national rankings:

• Overall – 10th
• Grocery – 22nd
• Housing – 5th
• Utilities – 3rd
• Transportation – 25th
• Miscellaneous – 14th