Understanding the Varying Purchasing Power of $100 Across US States

Introduction

One might assume that $100 holds the same value throughout the United States. However, this is far from the truth. The purchasing power of a dollar can differ significantly from one state to another, influenced by various factors such as the cost of food, utilities, taxes, housing, and transportation.

This article presents a map, courtesy of Visual Capitalist's Bruno Venditti, which demonstrates the purchasing power of $100 in each state. The data was compiled by GOBankingRates as of February 19, 2024.

Methodology

GOBankingRates gathered data from the 2022 Regional Price Parities report by the U.S. Bureau of Economic Affairs. The data was then analyzed using factors such as median household income, which was sourced from the 2022 American Community Survey, annual cost-of-living expenditures, sourced from the Bureau of Labor Statistics, and typical home value for a single-family residence, sourced from Zillow.

Disparity in Purchasing Power

The purchasing power of $100 can differ by as much as 26% from state to state. For instance, California has the lowest purchasing power ($87.50), while Arkansas has the highest ($113.40).

Here is a list of the real value of $100 in a selection of states:

California $88

Hawaii $89

Washington $90

Massachusetts $91

New Jersey $91

New York $92

New Hampshire $92

Oregon $93

Connecticut $94

Maryland $95

Rhode Island $95

Colorado $98

Florida $98

Virginia $98

Alaska $98

Illinois $99

Vermont $99

Maine $99

Arizona $100

Delaware $102

Minnesota $102

Texas $103

Nevada $104

Pennsylvania $104

Georgia $104

Utah $106

North Carolina $106

South Carolina $106

Michigan $107

Wisconsin $108

Wyoming $108

Tennessee $108

Indiana $108

Idaho $108

Ohio $109

Missouri $109

New Mexico $109

Louisiana $109

Montana $110

Kansas $110

Nebraska $110

Kentucky $111

West Virginia $111

Oklahoma $111

North Dakota $111

Iowa $112

South Dakota $112

Alabama $112

Mississippi $113

Arkansas $113

The national average is $103.

States where money has the least purchasing power include Hawaii, Washington, and Massachusetts. Conversely, Iowa, North Dakota, and Oklahoma join Arkansas as states where $100 goes further.

Additional Resources

For more information about money-related topics, check out this graphic that ranks the 10 best U.S. states to retire in as of 2024.

Bottom Line

The purchasing power of $100 varies significantly across the United States, influenced by factors such as cost of living and median household income. This disparity highlights the economic differences that exist within the country. What are your thoughts on this purchasing power disparity? Do you think measures should be taken to address this issue? Feel free to share this article with your friends and discuss. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.