Data study

The FIRE number you need in every US state

The same lifestyle costs 27% more in California than in Arkansas. Using official federal price data, here is what financial independence actually costs in all 50 states and DC.

By Muhammad Tayyab Shabbir · Updated August 2026 · 6 min read

The headline

Every FIRE calculation starts with your annual spending, and almost every article about it quietly assumes spending is the same everywhere. It isn't. The federal government measures this directly: the Bureau of Economic Analysis publishes Regional Price Parities, an index of how expensive each state is relative to the national average of 100.

Take a lifestyle that costs $60,000 a year at national average prices. In California the same lifestyle costs $66,420, needing a FIRE number of $1,660,500. In Arkansas it costs $52,140, needing $1,303,500. That is a $357,000 difference for the identical standard of living, purely because of geography.

Put another way: moving from the most expensive state to the cheapest cuts roughly 5.4 years of spending off your target, or lets you retire on a portfolio about 21% smaller. Geographic arbitrage is not a lifestyle preference, it is arithmetic. The international version of this study shows a far wider spread.

How these numbers are calculated

state spending = $60,000 × (state RPP ÷ 100)
FIRE number = state spending ÷ 4%

The $60,000 baseline is a chosen reference point, not a statistic: pick any budget you like and the ratios hold. RPP values are the BEA's 2024 all-items figures, the most recent published (released February 2026). The 4% withdrawal rate is the Trinity Study convention, which is why every FIRE number below is exactly 25 times its spending figure. Want it in your own numbers? Run them through the FIRE number calculator.

Every state, ranked by cost

StatePrice level (US = 100)Cost of a $60,000 lifestyleFIRE number at 4%
California110.7$66,420$1,660,500
Hawaii110.0$66,000$1,650,000
District of Columbia109.9$65,940$1,648,500
New Jersey108.8$65,280$1,632,000
New York107.9$64,740$1,618,500
Washington107.0$64,200$1,605,000
Massachusetts105.8$63,480$1,587,000
Maryland105.0$63,000$1,575,000
New Hampshire104.2$62,520$1,563,000
Connecticut103.6$62,160$1,554,000
Florida103.4$62,040$1,551,000
Oregon103.4$62,040$1,551,000
Colorado103.1$61,860$1,546,500
Alaska102.4$61,440$1,536,000
Rhode Island102.3$61,380$1,534,500
Virginia101.1$60,660$1,516,500
Arizona100.7$60,420$1,510,500
Nevada100.0$60,000$1,500,000
Illinois100.0$60,000$1,500,000
Delaware99.8$59,880$1,497,000
Utah98.9$59,340$1,483,500
Minnesota98.6$59,160$1,479,000
Vermont98.0$58,800$1,470,000
Pennsylvania97.6$58,560$1,464,000
Texas97.1$58,260$1,456,500
Maine97.0$58,200$1,455,000
Georgia96.3$57,780$1,444,500
Michigan96.2$57,720$1,443,000
Idaho95.5$57,300$1,432,500
Montana94.6$56,760$1,419,000
North Carolina94.3$56,580$1,414,500
Wisconsin94.1$56,460$1,411,500
South Carolina93.7$56,220$1,405,500
Indiana93.3$55,980$1,399,500
Ohio92.8$55,680$1,392,000
Wyoming92.7$55,620$1,390,500
New Mexico92.2$55,320$1,383,000
Tennessee91.9$55,140$1,378,500
Missouri90.8$54,480$1,362,000
Kentucky90.2$54,120$1,353,000
Nebraska90.1$54,060$1,351,500
Kansas90.1$54,060$1,351,500
West Virginia89.5$53,700$1,342,500
North Dakota89.0$53,400$1,335,000
Alabama88.8$53,280$1,332,000
South Dakota88.6$53,160$1,329,000
Louisiana88.2$52,920$1,323,000
Oklahoma87.8$52,680$1,317,000
Iowa87.8$52,680$1,317,000
Mississippi87.0$52,200$1,305,000
Arkansas86.9$52,140$1,303,500

Source: U.S. Bureau of Economic Analysis, Regional Price Parities by State, 2024 (all items). National average = 100. A $60,000 national-average lifestyle needs a $1,500,000 portfolio at 4%.

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What the spread actually tells you

The gap is smaller than people assume. The most expensive state is only about 127% of the cheapest, not double. Internet advice implies you can halve your FIRE number by moving; at state level you cannot. The dramatic savings come from city-level moves, where the spread between somewhere like San Francisco and a small Midwestern town is far wider than any two states.

Housing does most of the work. RPP bundles all consumer prices, but rents diverge far more than groceries or fuel. If you already own outright, your personal price level is much closer to the national average than your state's headline number suggests, which is why paid-off housing is such a powerful FIRE accelerant.

Cheap states are cheap for reasons worth checking. Lower price levels often travel with lower wages, thinner healthcare networks and fewer specialist services, which matter more in a 40-year retirement than in a working decade. Run the sequence-of-returns maths before assuming a low-cost state removes all the risk.

Honest limitations

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Sources and further reading

All figures on this page are computed from the primary source below. The underlying dataset is public and free to check.

Free to reuse: this table may be republished with attribution and a link to this page.

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