Why a remote salary changes the question
Most cost-of-living comparisons weigh prices against local pay. That makes sense if you will look for work where you land. If you keep a remote job, it doesn't: a lower local wage costs you nothing, and a lower rent is money you keep.
So for a remote worker the useful questions are simple. What does a home cost? How much of my pay does the state take in tax? Everything below answers those two, using HUD rents and each state's own tax rules.
The eight states with the lowest two-bedroom rent
| State | Typical two-bedroom rent | Yearly rent difference vs California | Top income-tax rate | All state and local taxes, share of income |
|---|---|---|---|---|
| West Virginia | $1,039 | $19,116 lower | 4.58% | 5.5% |
| Arkansas | $1,061 | $18,852 lower | 3.7% | 5.8% |
| Mississippi | $1,087 | $18,540 lower | 4% | 5.6% |
| Wyoming | $1,094 | $18,456 lower | None | 3.2% |
| North Dakota | $1,102 | $18,360 lower | 2.5% | 4.2% |
| Iowa | $1,113 | $18,228 lower | 3.8% | 6.9% |
| Oklahoma | $1,127 | $18,060 lower | 4.5% | 6.7% |
| Kentucky | $1,155 | $17,724 lower | 3.5% | 7.5% |
Rent: HUD Fair Market Rents, population-weighted state averages. California is used as the comparison because it has the highest average two-bedroom rent. Top rate: highest state income-tax bracket. Tax share: what a married couple on the U.S. median household income would pay in state and local income, property and sales tax (Locustep estimate from state tax rules, Census and BLS data).
What the table says
- West Virginia has the lowest average two-bedroom rent in the country, $1,039 a month.
- Wyoming stands out for a remote worker: no wage tax and a total tax share of 3.2%, the lowest of these eight. Its rent, $1,094, is the 4th lowest.
- North Dakota combines low rent with a low top income-tax rate, 2.5%, and a total tax share of 4.2%.
- Iowa has low rent and a total tax share of 6.9%, much of it property tax (1.29% of a home's value). On a remote salary, that line is worth a look.
If tax matters more to you than rent
On a high remote salary, the tax bill can matter more than the rent bill. Several states pair no wage tax with a light total load. Wyoming has the lowest total tax share in the country at 3.2%, with rent of $1,094. Tennessee is at 3.8% with rent of $1,381, Nevada at 3.9% with rent of $1,672, and South Dakota at 4.9% with rent of $1,187. Alaska is at 5.1%, though rent is higher, $1,519.
If you plan to buy, add property tax. It is 0.57% of a home's value in Wyoming, 0.45% in Tennessee and 1.02% in South Dakota. The lowest tax burden and states with no income tax rankings show the full list.
What the averages leave out
- Rent varies within a state. A college town or a state capital can cost far more than the state average.
- Remote work still needs a fast, reliable connection. Check providers at the exact address before you sign a lease.
- Think about travel. If your job means regular trips to an office or clients, the nearest major airport matters.
- Healthcare, safety and weather count as much as money. The quiz weighs them alongside cost and taxes, and the best states for remote workers ranking is a starting point.
- If an employer adjusts pay by location, the math changes. Ask before you move.
- For your own pay and household, the Net-Impact Report in Premium, a one-time $39 purchase, shows what a move does to your take-home pay, housing, taxes and insurance.
This guide gives information to help you decide. It is not tax, financial or legal advice. Tax law changes, and some states tax remote workers based on where the employer is. Check your own situation.