Cost of Living in the USA 2026: Rent, Wages, Prices, Tax
There is no single cost of living in the United States. Median rent in California is about 60% higher than in Illinois, and a home there costs nearly three times as much. This guide gives the national figures and shows how far they move by state, using the Bureau of Labor Statistics, the Census Bureau, the Department of Labor and the Internal Revenue Service as published on 13 October 2026.
Quick answer
The median gross rent in the United States was USD 1,413 a month in the Census Bureau's latest five-year figures, ranging among large states from USD 1,274 in Illinois to USD 2,036 in California. Median household income was USD 80,734 a year. Full-time workers had median earnings of USD 1,251 a week in the second quarter of 2026. Consumer prices rose 3.4% in the 12 months to August 2026, with energy up 16.3% and shelter up 3.0%. The federal minimum wage is USD 7.25 an hour, though many states set their own. Federal income tax runs from 10% to 37%, and 9.6% of people under 65 have no health insurance, which is the cost newcomers most often underestimate.
Housing: where the differences are
The Census Bureau's QuickFacts give housing costs and incomes for every state on the same basis. These are its five-year figures for 2020 to 2024, with incomes in 2024 dollars.
| Area | Median gross rent (USD a month) | Median home value (USD) | Median household income (USD a year) |
|---|---|---|---|
| United States | 1,413 | 332,700 | 80,734 |
| California | 2,036 | 734,700 | 99,122 |
| Washington | 1,760 | 564,600 | 98,141 |
| Florida | 1,669 | 359,000 | 74,568 |
| New York | 1,621 | 423,800 | 85,974 |
| Texas | 1,403 | 283,800 | 78,476 |
| Illinois | 1,274 | 263,300 | 83,390 |
Two things stand out. Higher rent does not always come with higher pay: Florida's median rent is above New York's, but its median household income is the lowest of the six. And these are state-wide medians, so a major city can differ a lot from the figure for its state.
For owners, the national median monthly cost with a mortgage is USD 1,963, and 65.2% of homes are owner-occupied.
What people earn
| Measure | Figure |
|---|---|
| Median weekly earnings, full-time workers (second quarter 2026) | USD 1,251, up 4.6% in a year |
| Median weekly earnings, men | USD 1,380 |
| Median weekly earnings, women | USD 1,131 |
| Median household income (2020 to 2024) | USD 80,734 |
| Per capita income | USD 44,673 |
| Federal minimum wage | USD 7.25 an hour, unchanged since 24 July 2009 |
The Bureau of Labor Statistics notes that the 4.6% rise in median earnings compared with a 3.9% rise in consumer prices over the same period, so typical full-time pay grew a little faster than prices. The federal minimum wage is a floor. Many states have their own minimum wage laws, and where a state law gives workers more protection the employer must comply with both.
Rent against pay (our calculation): the national median gross rent is about a quarter of a month of median full-time earnings before tax. In California the median rent is about 44% above the national figure.
Prices and inflation
| Category, 12 months to August 2026 | Change |
|---|---|
| All items | 3.4% |
| All items less food and energy | 2.4% |
| Shelter | 3.0% |
| Food at home | 2.2% |
| Food away from home | 3.4% |
| Energy | 16.3% |
| Gasoline | 27.4% |
| Electricity | 3.8% |
| Medical care services | 2.5% |
| Used cars and trucks | Down 2.3% |
Energy is the story of the year. Strip out food and energy and prices rose 2.4%. That matters in a country where the average journey to work takes 26.4 minutes.
Federal income tax
You pay federal tax in layers, and a higher rate applies only to the part of your income in that bracket. These are the rates the IRS currently publishes, for the 2025 tax year, for a single taxpayer.
| Taxable income (USD) | Rate |
|---|---|
| 0 to 11,925 | 10% |
| 11,926 to 48,475 | 12% |
| 48,476 to 103,350 | 22% |
| 103,351 to 197,300 | 24% |
| 197,301 to 250,525 | 32% |
| 250,526 to 626,350 | 35% |
| 626,351 and up | 37% |
For a married couple filing jointly the 10% band runs to USD 23,850 and the 12% band to USD 96,950. These are federal rates only; state and local taxes are separate.
Health insurance: the cost newcomers underestimate
The Census Bureau reports that 9.6% of people under 65 in the United States have no health insurance. Health cover is not automatic, so check what your employer, university or visa sponsor provides before you arrive, and what it costs you each month. Medical care services prices rose 2.5% over the past year.
How to estimate your own budget
- Start with the state. Look up its median gross rent and household income in Census QuickFacts, then look up the city or county you are moving to in the same tool.
- Check the state minimum wage if you will be working hourly; it may be higher than USD 7.25.
- Work out federal tax from the brackets, then add your state's tax.
- Price health insurance before you accept a job or a place at a university.
- Budget for a car unless you are sure you will not need one, and for fuel at current prices.
For the one-off costs of arriving, see our guide to the cost of moving to the USA.
Frequently asked questions
What is the average rent in the USA?
The median gross rent was USD 1,413 a month in the Census Bureau's 2020 to 2024 figures. It was USD 2,036 in California, USD 1,621 in New York, USD 1,403 in Texas and USD 1,274 in Illinois.
What is the average salary in the USA?
Median weekly earnings of full-time wage and salary workers were USD 1,251 in the second quarter of 2026, according to the Bureau of Labor Statistics. Median household income was USD 80,734 a year in the Census Bureau's latest five-year figures.
What is the minimum wage in the USA?
The federal minimum wage is USD 7.25 an hour and has been since 24 July 2009. Many states have their own minimum wage laws, and employers must comply with both.
What is the inflation rate in the USA?
The Consumer Price Index rose 3.4% in the 12 months to August 2026. Excluding food and energy it rose 2.4%. Energy prices rose 16.3% and gasoline 27.4%.
Which US states are most expensive to live in?
Of the six large states compared here, California has the highest median rent, at USD 2,036 a month, and the highest median home value, at USD 734,700, followed by Washington. Illinois and Texas are the lowest of the six.
How much income tax do you pay in the USA?
Federal income tax has seven rates from 10% to 37%. For a single taxpayer in the 2025 tax year, the 10% rate applies up to USD 11,925 and the 22% rate starts at USD 48,476. State and local taxes are added separately.
Is health care free in the USA?
Not automatically. The Census Bureau reports that 9.6% of people under 65 have no health insurance. Check what cover your employer, university or sponsor provides and what it costs.
Sources (official only)
- US Census Bureau — QuickFacts: United States
- Bureau of Labor Statistics — Consumer Price Index summary
- Bureau of Labor Statistics — Usual weekly earnings
- US Department of Labor — Minimum wage
- Internal Revenue Service — Federal income tax rates and brackets
All figures verified against the official pages above on 13 October 2026. The Bureau of Labor Statistics updates prices monthly, so check the latest release. Information, not financial advice.