Best States to Live in the USA in 2024

Choosing the right place to call home is one of the most important decisions you’ll ever make.

The factors that determine the best state to live in are vast and varied, from economic opportunities and the cost of living to the quality of healthcare and education.

Our comprehensive analysis breaks down the key metrics across all 50 states, helping you make an informed decision about where to settle down.

Whether you’re seeking a vibrant urban lifestyle or a peaceful rural retreat, our guide provides valuable insights into what each state has to offer. Explore our rankings to find out which states excel in the areas that matter most to you and discover the ideal place to build your future.

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Best to Worst States: What Is the Range of Economic Conditions?

Washington State was found to be the best state to live in, while Hawaii ranked last.

Washington’s chief benefits are an average median income that ranks fourth nationally and no state income tax.

However, Hawaii has the highest cost of living in the nation, which is compounded by the second-highest state income tax.

To measure the best states to live in, MoneyRates factored in six criteria:

1. Cost of living
2. Median annual wage
3. State income tax
4. Unemployment rate
5. Increase in unemployment since the COVID-19 lockdowns began
6. Workplace safety

Comparing Median Annual Wage

These conditions vary significantly from state to state. For example, the median annual wage in Massachusetts is nearly $20,000 higher than in Mississippi.

Comparing median annual wage in light of purchasing power

Wage comparisons don’t tell the whole story, though. Take New Hampshire and Oregon, for example.

These two states have similar median wages, but Oregon is one of the worst states financially.

While New Hampshire has no state income tax and only a slightly higher-than-average cost of living, Oregon has one of the nation’s highest state income tax rates and one of the highest costs of living.

The result is that the median wage’s purchasing power in Oregon is much lower than that of New Hampshire after you account for state taxes and cost of living.

Comparing the jobless rate

Then there’s the question of getting a job in the first place. One of the best states for jobs was North Dakota, which has the lowest unemployment rate in the nation. Contrast that with the jobless rate in Louisiana, which is more than three times as bad.

Economic Conditions and Business Stability

Economic conditions across the United States have been influenced by various factors, including shifts in industry trends, changes in consumer behavior, and local economic policies.

In recent years, some states have experienced fluctuations in employment rates, with certain industries facing significant challenges.

The ability of businesses to survive and thrive in different states depends on the strength of the local economy, the resilience of key industries, and the effectiveness of state policies in supporting economic growth.

The variations in economic stability across states are crucial factors to consider when evaluating the best places to live.

For instance, states like Louisiana and Nevada, where tourism plays a significant role in the economy, have faced unique challenges but are also seeing renewed growth as industries adapt to changing conditions.

MoneyRates has taken these developments into account to provide a comprehensive analysis of the economic conditions in each state.

Best States to Live in 2024

MoneyRates used a proprietary formula to weigh the six factors listed above and produce a rank for all 50 states in terms of conditions for making a living. The following ranked as the 10 best states to live in the USA:

1. Washington

In the 10 years MoneyRates has been conducting this study, Washington has topped the list five times for the best states to live in the US.

It reclaims the top spot this year after coming in second last year.

Washington is one of eight states with no state income tax. Combine that with the fact that it also has a city with the third-highest median income in the nation (Seattle, $124,715/year), and its underlying strengths are clear.

Unemployment in Washington has bumped up a bit recently, which is the same case for most states in the country. This is likely a result of the Federal Reserve’s efforts to slow down inflation by keeping interest rates high after raising them for several consecutive years.

Washington’s dynamic economy is driven by a diverse range of industries, including technology, aerospace, agriculture, and tourism.

Despite its strong economic foundation, Washington has experienced fluctuations in unemployment rates due to various factors, such as industry shifts and global economic trends.

The state’s major cities, like Seattle, have historically enjoyed lower unemployment rates due to the presence of major employers like Amazon and Microsoft.

However, rural areas have faced higher unemployment rates, highlighting the regional disparities within the state.

Overall, Washington’s unemployment rate tends to be influenced by the performance of its key industries and the broader national economic climate, making it a crucial factor to monitor when assessing the state’s economic health.

2. North Dakota

This is the third straight year North Dakota has made the top 10 in this study, and in 2024, it climbed from ninth place to second.

North Dakota has a cost of living that is 5% lower than the national average and a healthy 2.1% unemployment rate, which is over two percentage points less than the national average.

North Dakota boasts a relatively low cost of living compared to many other states, making it an attractive option for those seeking affordability without sacrificing quality of life.

Housing costs, in particular, are significantly lower than the national average, which helps residents stretch their income further.

The state’s economy is heavily influenced by its energy sector, particularly oil and natural gas, as well as agriculture.

These industries have provided economic stability and job opportunities, though they also make the state’s economy somewhat sensitive to fluctuations in global commodity prices.

Despite this, North Dakota has maintained a resilient economy with low unemployment rates, contributing to a favorable environment for both individuals and families looking to settle in a state with a strong economic foundation and manageable living costs.

One negative should be noted, however: According to the AFL-CIO, North Dakota ranks second-worst nationally for workplace safety.

3. Minnesota

After finishing fourth in each of the last two years, Minnesota climbed a notch to third place this year.

Its 2.5% unemployment rate is tied for fifth-lowest in the nation.

Minnesota’s unemployment rate is 2.9%, which is lower than the national average but still higher than some of its neighboring states like North Dakota.

Minnesota is known for its robust healthcare, education, and manufacturing sectors, which provide a steady stream of job opportunities and contribute to economic stability.

Housing costs in Minnesota can vary widely, with the Twin Cities area being more expensive than rural regions, but overall, the state’s cost of living remains manageable for most residents.

Minnesota’s economy is also bolstered by a highly educated workforce and a strong tradition of innovation, particularly in industries like technology and medical devices. T

his economic diversity helps insulate the state from downturns in any single sector, making Minnesota an attractive place to live for those seeking both economic opportunities and a high quality of life.

However, Minnesota’s biggest weakness as a place to make a living is its higher state income tax burden than that of most states. Minnesota’s top state tax rate is the sixth-highest in the country.

4. Michigan

For the fourth consecutive year, Michigan has made the top 10 and improved its rank in each of those years.

While the cost of living in some states continues to rise, Michigan remains slightly below the national average )4% lower), and housing costs in the state are 10% lower than the national average. The state’s median household income of $68,990, which is higher than many states.

The state’s economy is historically tied to the automotive industry, with Detroit being the heart of America’s car manufacturing.

While the state has faced economic challenges in the past, particularly during the decline of the auto industry, recent years have seen a resurgence in manufacturing, along with growth in sectors like technology, healthcare, and renewable energy.

This diversification has helped stabilize Michigan’s economy and create new job opportunities.

Despite these improvements, some areas, particularly in rural parts of the state, still face economic hardships. The unemployment rate is on the higher side at 4.1%.

Overall, Michigan offers a cost-effective lifestyle with access to a variety of economic opportunities, making it a compelling option for those looking to live in a state with a rich industrial heritage and a growing economic landscape.

5. Texas

Though it dropped a couple of slots after two consecutive third-place finishes, Texas remains a strong place to make a living based on a few factors:

• No state income tax
• More affordable than most states
• Workplace safety is better than in most states

Texas offers a relatively low cost of living, particularly when compared to other large and economically vibrant states.

Housing remains affordable in many parts of the state, even in its major cities like Houston, Dallas, and San Antonio, though Austin has seen rising costs due to its rapid growth.

Texas’s economy is one of the largest and most diverse in the country, driven by key industries such as energy, technology, healthcare, and finance. The state is a hub for traditional sectors like oil and gas and emerging fields like tech startups and renewable energy.

This economic diversity has helped Texas maintain a strong job market and attract businesses and individuals from across the country.

Additionally, the absence of a state income tax makes Texas particularly appealing for both residents and companies.

While its unemployment rate of 4% is higher than some states in the midwest, its cost of living is 7% lower than the national average, and housing costs are 17% lower.

6. Illinois

In addition to topping the ranking in the initial year of this study, Illinois has made the top 10 in eight out of 10 years.

Chicago, the state’s largest city, is a major financial hub and home to numerous Fortune 500 companies, contributing significantly to the state’s economic strength.

Despite these economic advantages, Illinois’s cost of living is slightly above the national average, particularly in areas like housing, taxes, and utilities.

Chicago, in particular, has higher living costs compared to other parts of the state, though this is balanced by the wide array of job opportunities and amenities available in the city.

Outside of Chicago, the cost of living is more affordable, particularly in rural and suburban areas. However, the state’s high property taxes can be a burden for homeowners, and it has one of the highest state income tax burdens for median earners.

7. Kansas

This is the third time in 10 years Kansas has made the top 10.

Kansas has the third-lowest cost of living, making it 13.5% lower than the national average. Even states with historically low housing costs are seeing large increases in those costs. Housing in Kansas is 32% lower than the national average, and the state boasts a much lower unemployment rate than the national average.

Because housing costs are particularly low, residents can afford to own homes at prices well below the national average.

The state’s economy is largely driven by agriculture, with Kansas being a leading producer of wheat, corn, and cattle.

However, the economy is also supported by manufacturing, aviation, and energy sectors, which provide additional employment opportunities.

Kansas has worked to diversify its economy, with growth in sectors like healthcare and education, contributing to overall economic stability.

Despite these strengths, some rural areas of the state continue to face economic challenges.

Nonetheless, Kansas offers an attractive combination of low living costs and economic opportunities, making it a viable option for those seeking affordability and a stable lifestyle in the heart of the Midwest.

8. Tennessee

This is the first time Tennessee has made the top 10 since 2011, when it also ranked eighth. It has a decent unemployment rate of 3.%, which puts it in a respectable position when compared to the rest of the states for unemployment rates.

Tennessee benefits from both a low cost of living and a relatively low state income tax burden.

Tennessee offers a relatively low cost of living index of 84.9, which is a significant draw for residents seeking affordability without sacrificing quality of life.

Housing costs, in particular, are quite reasonable (18% lower than average), even in rapidly growing cities like Nashville and Knoxville.

The state’s economy is diverse and has seen robust growth in recent years, driven by industries such as healthcare, manufacturing, music, and tourism. Nashville, often referred to as “Music City,” is a major hub for the entertainment industry, while Memphis has a strong presence in logistics and transportation thanks to companies like FedEx.

The state’s business-friendly environment, combined with no state income tax, further enhances its appeal. Tennessee’s economic growth has created a wealth of job opportunities, contributing to a dynamic and stable economy.

Overall, Tennessee provides an attractive blend of affordability, economic opportunity, and cultural richness, making it a compelling choice for those looking to settle in a state with a thriving and varied economic landscape.

9. Colorado

This ranking continues a streak of making the top 10 in every year of this study. However, Colorado has gained so much popularity that some changes have already made it more expensive to live in. For example, the cost of living is 7% higher than the national average, and housing is now 20% higher than the national average.

Colorado is known for its high quality of life, though its cost of living is above the national average, particularly in housing.

Cities like Denver and Boulder have seen significant increases in housing prices due to high demand and rapid population growth.

Despite the higher costs, Colorado’s strong and diverse economy makes it an attractive place to live.

The state’s economy is driven by industries such as technology, aerospace, healthcare, and tourism, with its stunning natural landscapes fueling a thriving outdoor recreation sector.

Colorado also has a burgeoning renewable energy industry, reflecting its commitment to sustainability. The state’s educated workforce and entrepreneurial spirit have made it a magnet for startups and innovation.

While the cost of living may be higher, Colorado’s economic opportunities and lifestyle advantages make it an appealing destination for those seeking career growth and an active, outdoor-oriented way of life.

This year, Colorado benefited from top-10 rankings for affordability and workplace safety, but it may possibly fall off the list by next year.

10. Oklahoma

This is Oklahoma’s third time making the top 10 and its first time since 2014.

Oklahoma has the third-lowest cost of living and is one of the best states financially. Even though the median income is relatively low, the money goes a long way. The cost of living is 12% lower than the national average, and housing is 28% lower.

Oklahoma also has one of the lower unemployment rates in the nation at 3.4%, so the prospects for getting a job there should be relatively good.

The state’s economy is largely driven by the energy sector, with oil and natural gas production playing a central role.

Agriculture is another key industry, with Oklahoma being a significant producer of wheat, cattle, and poultry.

In recent years, the state has made efforts to diversify its economy, with growth in sectors like aerospace, manufacturing, and biotechnology. Despite these advances, some areas, particularly in rural parts of the state, continue to face economic challenges.

However, Oklahoma’s combination of low living costs, a strong energy sector, and emerging industries makes it an attractive option for those seeking affordability and economic opportunities in a state with deep-rooted industries and a growing economic landscape.

Your Career and Personal Finance Situation

The economic impact of the COVID-19 pandemic was felt across the nation, and even several years later, its effects continue to shape the economic landscape. While some states have rebounded strongly and found stable economic footing, others are still working to recover fully.

If you find yourself in one of the states struggling to regain its economic strength, it might be worthwhile to explore opportunities in other regions. Relocating to a state with better job prospects could be a strategic move to advance your career and secure a more stable financial future.

Even though the immediate challenges of the pandemic are now several years behind us, the lessons learned remain valuable. The importance of financial preparedness—whether by building an emergency fund or boosting retirement savings—has never been clearer.

The experience of COVID-19 has underscored the need to be ready for the unexpected, and continuing the savings habits many adopted during those years can provide lasting security.

Best States to Live in 2024 Methodology

The six factors used in calculating the best states to live in the US came from the following sources:

1. The cost of living by state was based on the average of each state’s metro area costs of living data as reported by the Council for Community and Economic Research.
2. Median annual wage was based on the state-by-state average for all occupations from the Bureau of Labor Statistics.
3. State income tax was calculated using state income-tax brackets from the Tax Foundation and applied to the median income in each state.
4. The unemployment rate was based on state unemployment data from the Bureau of Labor Statistics.
5. The increase in unemployment since the COVID-19 lockdowns began was calculated by comparing the March and February 2020 state unemployment data from the Bureau of Labor Statistics. We then looked at unemployment rates from March 2022 to see how they had changed since then.
6. Workplace safety was based on Bureau of Labor Statistics data on both rates of non-fatal occupational injuries and illnesses and fatal occupational injuries.

Ranking the 50 States According to Liveability

Here’s the complete ranking of all 50 best states to live in the U.S.:

Best States to Live in 2024
Rank	State
1	Washington
2	North Dakota
3	Minnesota
4	Michigan
5	Texas
6	Illinois
7	Kansas
8	Tennessee
9	Colorado
10	Oklahoma
11	Virginia
12	Ohio
13	Missouri
14	Nebraska
15	Wyoming
16	Wisconsin
17	Georgia
18	Iowa
19	Indiana
20	New Hampshire
21	New Mexico
22	Massachusetts
23	Arizona
24	Alabama
25	North Carolina
26	Connecticut
27	Utah
28	Idaho
29	Pennsylvania
30	New Jersey
31	Delaware
32	Alaska
33	Rhode Island
34	Florida
35	Arkansas
36	South Carolina
37	Kentucky
38	Maryland
39	Mississippi
40	Vermont
41	Louisiana
42	South Dakota
43	West Virginia
44	Montana
45	New York
46	Maine
47	Nevada
48	California
49	Oregon
50	Hawaii