Most people are all too aware that money goes further in some places than others, but exactly how much is a bit of a mystery. That’s why the Tax Foundation — using data from the US Bureau of Economic Analysis — decided to shed some light on exactly how far $100 will go in each state.
To calculate this, they looked at regional price parities — essentially the price level of a region in relation to the US as a whole. They also analyzed prices of “all consumption goods and services, including housing rents,” according to their report.
And here’s what they found:
Right about now, you’re probably thinking, damn, I should move to Mississippi. “If you have $50,000 in after-tax income in Mississippi, you would need after-tax earnings of $67,500 in New York just to afford the same overall standard of living,” the report says.
Most people assume that higher incomes drive up costs — in other words people are making more money in New York and therefore costs are higher– but the report concluded that while that often is true, it isn’t always the case.
“Some states, like North Dakota, have high incomes without high prices,” the report stated.
Now, what should we all do with this information?. Well, it could inform areas to consider living in, good areas to retire, and even great places to go on a vacation. Lexington Kentucky, anyone?
Feature Image: Adam Katz Sinding/Le 21ème