Cost of living in the US in 2026: A guide for expats

We’ll run through all the regular expenses here, from groceries and clothing to housing and healthcare, giving you an idea of how much you’ll need to budget for.

Understanding the general cost of living in the US

The US is among the most expensive countries in the world. It ranks 23rd on the 2026 Numbeo Cost of Living Index and has six cities (New York, Honolulu, San Francisco, Seattle, San Jose, and Washington) in the top 20.

The average annual household expenditure in the US was $78,535 in 2024 ($6,545/month). Median annual household income in 2024 was $83,730 ($6,978/month). According to Numbeo, a single person needs to budget $1,179 to cover monthly costs (excluding rent).

Living standards in the US are relatively high. The country ranks 17th on the 2025 UN Human Development Index and 15th on the 2026 Numbeo Quality of Life Index. The top-ranking US cities on the 2024 Mercer Quality of Living Index are Boston (32nd), San Francisco (36th), and Honolulu (39th).

According to the OECD Better Life Index, the US scores highly for income, housing, and pollution rate, but poorly for unemployment, crime, work-life balance, and gender pay equality.

Poverty and inequality remain problems in the US. According to government data, 10.6% of the population was in poverty in 2024. Around 1.25% have less than $3 a day, which is the current World Bank definition of severe poverty for high-income countries (2023).

The Gini Coefficient (1=total equality, 100=total inequality) in the US is 41.82 (data from 2023). Economic inequality has increased in recent years, with data showing that the wealthiest 1% have 139 times as much income as the bottom 20% (2021). There are wealth disparities across ethnicity and gender (the gender pay gap was 15% in 2024).

Inequalities can impact on living costs and standards, especially in more expensive cities. Those on low incomes spend a larger percentage of income on essentials such as food, housing, and transport.

Is the US economy good? 🇺🇲

The US is currently the largest economy in the world, with a GDP of $31.8 trillion (2025). Its biggest industries are (2024):

• Manufacturing
• Finance and insurance
• Professional, scientific, and technical services
• Private healthcare and social assistance
• State and local government

GDP per capita (PPP) in the US works out at $92,800, which places it at 10th highest in the world (2025). The overall economy is stable, with continued growth and low unemployment by historical standards. However, growth is moderate compared to a number of other economies, and consumer confidence is currently relatively low.

Inflation and disposable income in the US

Inflation in the US stood at 2.4% in January 2026, down from a high of 9.1% in June 2022. International Monetary Fund (IMF) projections are that inflation rates in the US will drop to around 2.0% in 2027, which is above the overall projection rates for advanced economies (1.7%).

Real disposable income per capita (accounting for inflation) stood at $52,649 in December 2025. This works out at around $4,387 per month per person. This is the average amount that people have to spend and save after paying taxes.

Although the official poverty rate in the US (people below the federal poverty threshold) is 10.6%, the supplemental poverty measure (accounting for benefits and necessary expenses) in 2024 was 12.9%.

Cost of living in the US in 2026 🇺🇲

Using the 2024 household expenditure data and accounting for inflation in 2025 (2.7%) and 2026 (2.4%), we can estimate the average household costs in the US for 2026.

Breakdown of costs:

💰 Types of costs	🗓️ Annually	🗓️ Monthly
Alcoholic beverages	$676	$56
Personal care products and services	$1,029	$86
Education	$1,650	$138
Clothing and services	$2,104	$175
Entertainment	$3,795	$316
Healthcare	$6,517	$543
Personal insurance and pensions	$10,303	$816
Food	$10,694	$891
Transportation	$14,006	$1,167
Housing	$27,623	$2,302
Other	$4,194	$350
Total	$82,591	$6,883

Keep reading for an overview of the cost of living expenses you might come across in your daily life.

Food and drink costs in the US in 2026

Households in the US spend an average of 12.9% of their budget on food and 0.8% on alcoholic beverages. A further 0.4% goes on tobacco products and smoking supplies.

When shopping for food, drink, and other essentials in the US, the payment method you use can affect your overall costs. If you’re using a card from your home country, your bank may charge foreign transaction fees (typically 2–3%) plus an exchange rate markup on every purchase.

Groceries in the US 🍎🍞

Households in the US are expected to spend an average of $891 on food each month in 2026. This includes eating out, but the vast majority will be on groceries in supermarkets and convenience stores.

Here are some of the price ranges for everyday products in the US:

Product	Price range	Product	Price range
Milk (1ltr) 🥛	$0.67–2.02	Beef (1kg)	$9.92–26.46
Bread (500g loaf) 🍞	$2.00–6.76	Apples (1kg)	$2.20–8.82
Rice (1kg) 🍚	$2.03–8.82	Tomatoes (1kg)	$2.16–8.82
Eggs (12 large) 🥚	$2.00–7.42	Potatoes (1kg)	$1.10–6.61
Cheese (1kg) 🧀	$6.61–26.46	Water (1.5ltr)	$1.00–3.50

Restaurants in the US 🍔🍕

The US has 235 Michelin-starred restaurants, and many people across the country love to eat out. However, you don’t need to opt for fine dining, as there are plenty of more modest eateries as well as convenient fast food options.

According to Numbeo, a three-course meal for two at a mid-range US restaurant will cost around $76, while a meal at a budget restaurant will be around $20. Fast food combo meals cost around $12 on average.

Beer, wine, and spirits in the US 🍺🍷

The average US household is expected to spend around $56 a month on alcoholic beverages in 2026. If you visit a bar or restaurant, you can expect to pay around $6 for a pint (0.5ltr) of domestic beer or $7.50 for a 33cl bottle of imported beer.

Naturally, alcohol is less expensive in supermarkets. Expect bottled beer to set you back between $2–4 and a mid-range bottle of wine to cost around $15.

Coffee in the US ☕

The US has a reputation as a coffee-drinking nation. There are plenty of coffee shops all across the country. A regular size cappuccino will cost around $5.35 on average . If you want to buy coffee from a supermarket or convenience store, expect to pay in the region of $5–9 per kilo.

Housing costs in the US 🏡

As in many countries, US households spend the majority of their income on housing. The average housing costs (including utilities) in 2026 are expected to be $2,302 per month. Finding affordable housing in the US can be a challenge, especially in major cities.

According to Finder (2025), the US ranks only 46th globally in terms of average property prices. However, rent costs as a percentage of income in the US are higher than the OECD average (2021).

Rent and property prices

Housing costs vary across the US based on location, size, and property type. Studios and residential apartments in areas such as central New York are comparatively more expensive than houses in more rural and less populated areas.

In 2026, the average overall monthly rent in the US is $1,737. The average property price at the end of 2025 was $405,300. According to US Census data, average monthly mortgage costs were $1,963 in 2024.

Depending on location, you can expect to pay the following prices:

	Average monthly rent for 1 bed in city center	Average monthly rent for 3 bed in city center	Average apartment price per square meter in city center	Average apartment price per square meter outside city center
Austin, TX	$2,178	$3,770	$7,101	$3,204
Chicago, IL	$2,469	$4,750	$3,768	$2,542
Los Angeles, CA	$2,675	$5,558	$7,964	$7,154
Miami, FL	$2,990	$5,423	$6,870	$3,763
New York City, NY	$4,461	$8,949	$20,372	$8,481
US overall average	$1,669	$2,687	$3,343	$2,658

If you’re looking to live in the US on a budget, some of the cheaper cities to move to are:

	Average monthly rent for 1 bed in city center	Average monthly rent for 3 bed in city center	Average apartment price per square meter in city center	Average apartment price per square meter outside city center
Bakersfield, CA	$1,850	$2,433	$2,462	$2,478
Brownsville, TX	$948	$1,683	$1,852	$1,852
Decatur, IL	$875	$1.005	$942	$942
Jamestown, NY	$1,200	$2,100	–	–
Ocala, FL	$1,285	$2,001	$2,021	$2,028

Utility bills in the US 📄

Utility prices in the US tend to be less expensive than in many European countries, however they vary widely within the country (state and city). Households pay around $78/month on average for water (2025). Average electricity costs were between $0.16–0.18/kWh in November 2025.

In total, you can expect to pay between $130–400 per month on utility bills in the US, depending on your consumption and property size.

Internet and telecom prices in the US in 2026 💻📺

In contrast to utilities, telecommunications bills in the US are typically higher than in most European and Asian countries. This is due to various factors, including fewer nationwide providers, less regulation, and higher infrastructure costs due to geographical size.

That said, costs can vary significantly depending on provider, type of service, and location. Many providers offer packages that include internet, TV, and home phone, with prices starting at around $100.

Broadband internet alone (60Mbps+) costs between $50–110 a month, while a typical mobile phone plan will cost you $30–110 a month.

Healthcare costs in the US 🏥

The US has the highest healthcare costs in the world. Around two-thirds of the population has private health insurance. Public health insurance is not universal and only covers low-income families (Medicaid), seniors (Medicare), as well as certain other vulnerable groups.

Healthcare costs vary across insurance type, coverage level, personal factors (e.g. age, health), and location. Most Medicaid services are either free or require a small copayment. Medicare Part B plans start at just over $200/month.

Employer-based private insurance plans are typically split between employee and employer (with workers paying 20–40% of costs on average). Individual plans can be purchased directly from the ACA Marketplace. Monthly costs can vary from as little as $45 to over $1,000.

The average monthly healthcare costs are expected to be $543 per household in 2026.

Transportation costs in the US

In 2026, households will spend an average of $1,167 a month on transportation, making it the cost of living expense in the US after housing.

Public transport in the US 🚌🚊

The US has a well-developed public transportation network of buses and trains, as well as subway/metro services in many larger cities. However, services can be limited outside of major metropolitan areas, leading to lower usage rates and greater reliance on automobiles.

Most cities operate local bus services, while larger metropolitan areas may also have rail systems and commuter trains connecting suburbs to city centers. Intercity travel is available through providers such as Amtrak (rail) and Greyhound (bus), which connect cities across states.

According to Numbeo (2026), a single fare on US public transport will cost between $1.50 and $4. Monthly passes cost between $35–135.

Taxi tariffs start at around $2.60 and then you can expect to pay around $1.75 per kilometer.

Driving and vehicle costs in the US

Driving and owning a vehicle is an expensive business in the US. According to the Bureau of Transportation Statistics, automobile costs have increased steadily over the past five years and were $12,296 per year in 2024. This works out at around $1,025 per month.

Beyond the price of lessons, a driving license, and vehicle purchase costs, you’ll have to consider:

• Auto insurance – liability coverage required in most states starts at around $53/month but can be much more
• Fuel costs – as of February 2026, gasoline costs $0.86 per liter, and diesel costs $0.97 per liter
• Maintenance costs – these can cost between $800–1,200 a year
• Registration and taxes – registration can cost between around $30–675, depending on state, while some states charge vehicle taxes

If you are buying a new car, you can expect to pay around $25,900 for a Toyota Corolla Sedan 1.6 and around $35,700 for a Volkswagen Golf 1.5.

The cost of clothing and footwear 👕👟

In 2026, households should expect to spend around $175 a month on clothing and apparel-related services.

Exact costs will greatly depend on the type of garment as well as the brand. In general, the US has lower prices than many European markets for basic and mid-range clothing. However, luxury brands can be more expensive in the US, especially those manufactured in Europe.

On average, you can expect to pay $30–80 for a pair of Levi’s jeans and $25–70 for a summer dress in a chainstore such as Zara or H&M. A pair of mid-range Nike running shoes will cost you $60–135.

How much does leisure and entertainment cost in the US?

In 2026, households will spend an average of $316 each month on entertainment. Costs are fairly comparable with European and Asian averages. However, they can vary a lot across the country.

Monthly gym membership can cost between $20–116, while a cinema ticket is likely to be between $11–22. As an example of regional variations, average costs in New York are $115 for monthly gym membership and $22 for a cinema ticket. Meanwhile, in Decatur, Illinois, expect to pay $75 for gym membership and $12 for a cinema ticket on average.

Costs of US schooling and childcare 🏫

The US has some of the highest childcare costs in the world. According to OECD data (2022), net childcare costs for two children is around 20% of average combined wage costs for a couple. This rises to 32% for a single person on average wages.

Public daycare options in the US are very limited. Most places are reserved for low-income families. Private full-time preschool or kindergarten costs range between $890 and $3,360 a month. State primary and secondary education is free. However, If you send your child to an international primary school, expect to pay between $1,250 and $5,000 a month.

The average annual cost of private schooling in the US is $9,210 for elementary/middle schools and $16,420 for secondary/high schools (2021).

If you choose to hire a nanny, the average hourly rate is $21. Au pairs require board and lodging, as well as a minimum of $195.75 pocket money a week.

The costs of studying in the US

The US has some of the most expensive college and university fees in the world. According to recent data, the US ranks:

• Most expensive for public university tuition, with average annual fees of $9,596 (2023)
• 2nd most expensive for overall full-time college education costs, behind Luxembourg (2021)
• 2nd most expensive for public university master’s tuition, behind Lithuania, with annual fees of $12,596 (2023)

For independent or private universities, US students pay average annual tuition fees of $34,041 for bachelor’s programs and $28,017 for master’s.

International students looking to gain undergraduate or postgraduate qualifications in the US can expect to pay annual fees of (2025):

• $8,000 – 35,000 for bachelor’s degrees at public universities
• $10,000 – 35,000 for master’s degrees at public universities
• $25,000 – 50,000 for bachelor’s degrees at private universities
• $22,000 – 55,000 for master’s degrees at private universities

How does the US compare to the rest of the world? 🌍

The US ranks 23rd on the 2026 Numbeo Cost of Living Index, with an overall score of 68.8 out of 100. This is below Switzerland, Israel, and the Netherlands, but higher than Germany, Australia, and the UK.

It ranks 14th on the Rent Index, 16th on the Groceries Index, and 19th on the Restaurant Price Index (Numbeo, 2026).

Cost of living in New York City, NY

With a population of over 8 million people, New York City is the biggest US city as well as the most expensive. It ranks 9th on the 2026 Numbeo Cost of Living by City Index. This is driven primarily by housing costs, with Manhattan being the most expensive borough. Utilities, transportation, and groceries are also higher than average, although the city has an excellent public transportation system which lessens reliance on cars.

Although living costs are expensive, salaries also tend to be higher than average here – especially in industries such as finance, media, law, and healthcare. The city is known for its vibrancy, and its ample and diverse cultural and entertainment options add to average monthly expenditures for residents.

Cost of living in Austin, TX

The capital of Texas, although only its fourth-largest city, with a population of just over 1 million. Austin ranks 177th most expensive global city on the 2026 Numbeo Cost of Living Index. It’s affordable compared to many major US cities, although housing costs have risen substantially in recent years. Suburban areas of the city remain more affordable.

Austin is a city that is growing economically, and incomes are relatively high compared to living costs. Texas has no state income tax, which helps to keep overall costs lower, although property taxes and insurances can be expensive for homeowners.

Cost of living in Miami, FL

Miami is the most expensive city in Florida. It’s one of the most multicultural cities among the southern US states, as well as being one of the most internationally influenced.

The higher than average living costs are largely driven by housing costs, particularly in desirable neighborhoods such as Miami Beach. Transportation costs are fairly high, while utilities and grocery costs are just above national averages. However, taxes are typically lower as there is no state tax.

Miami has a strong tourism economy and, like New York City, residents tend to spend more on dining out, leisure, and entertainment activities. However, salaries in its key industries are competitive.

Assistance with living costs in the US 🇺🇲

There are various social assistance programs to help US individuals and families on low incomes with daily living costs. These are usually means-tested, with eligibility linked to income levels. Programs include:

• Food assistance – various programs including food stamps and school meals programs
• Health insurance – assistance to meet medical costs, Medicaid and affordable private insurance through the ACA Marketplace
• Housing support – includes assistance schemes for renters and buyers, as well as emergency housing schemes for those at risk of homelessness
• Help with utility bills – programs to help with heating, cooling, and telecommunications costs
• Welfare and financial assistance – for families in need and Native Americans
• Social Security – schemes include Supplemental Security Income (SSI) and Social Security Disability Insurance

Tips on how to save money in the US

Here are a few useful budgeting tips for the US:

• Shop smarter for groceries: Use budget stores like Aldi, Costco, and Walmart, where you can find cheaper produce. It’s also worth timing your shop around closing times, when there are more likely to be reduced stock deals. Also, use cashback apps like Rakuten and Ibotta.
• Check for restaurant deals: If you want to eat out, look for special deals. Many restaurants may offer specials such as 2-for-1 or may be part of the Tastecard scheme.
• Use public transport, cycling, and ride-sharing services: You can save money by buying weekly or monthly travel passes for regular travel. Ride-sharing apps such as Lyft and Uber can help save on petrol costs.
• Shop at thrift stores: The US has many secondhand and resale stores across the country, which are great places to find bargains and save money.
• Use energy wisely: You can save on heating and electricity by insulating your home, using energy-efficient appliances, and taking advantage of off-peak energy tariffs.
• Be smart about currency exchange: If you need to transfer money to or from the US, or manage living expenses in multiple currencies, getting a good exchange rate can help you save money. Services like Wise use the mid-market exchange rate that avoid unnecessary hidden costs, which can help you budget when it comes to salary payments and bills.

Wages and salary in the US

According to the Social Security Administration (SSA), the average salary in the US in 2024 was $69,646.57. This is a 4.84% increase from 2023. This equates to a gross monthly salary of $5,803.88. Numbeo lists the average US net salary (after tax) as $4,254.16 for 2026. These averages can vary significantly across states.

The federal minimum wage in the US is $7.25 per hour. This hasn’t changed since 2009. Many have higher minimum wages. These range from $8.75/hour in West Virginia to $17.95/hour in the District of Columbia.

Taxation and social security in the US 🇺🇲

The US has a progressive tax system, with income tax rates ranging from 10% on income up to $12,400, up to 37% on incomes above $640,600. Residents can claim the standard deduction, $16,100 for single filers in 2026, to lower their income tax bill.

Social Security (US state retirement benefit) is funded through payroll taxes at a current rate of 12.4% of earnings up to $184,500 (split between employer and employee). As payout rates only cover a portion of working salaries (averaging at just over $2,000/month in 2026), many workers in the US supplement this with employer-sponsored plans and individual savings.

Additionally, workers contribute 2.9% of their salary towards Medicare (with employers again paying 50% of this).

Useful resources

• Numbeo – information on living costs in the US (accessed 22nd Feb 2026)
• US Federal Government – information on social assistance benefits in the US (accessed 22nd Feb 2026)
• Bureau of Consumer Protection – consumer rights body that is part of the US Federal Trade Commission (accessed 22nd Feb 2026)
• US Bureau of Labor Statistics – information and statistics on wages and expenditure in the US (accessed 22nd Feb 2026)