The dollar value in each US state revealed with the relative value of $100
How far will your dollars go? The real value of $100 in each state is revealed and the difference could be as high as $30
- Study based on the variation in the cost of living in 50 states
- That means $100 worth as little as $89.05 in a more expensive state, California.
- People living in Midwest or southern states get up to $115
The value of the US dollar can vary wildly depending on where you live.
A new study from the Tax Foundation compares the cost of living in 50 states and how much you can get for $100, against the national average.
People living in expensive states like California and New York fare worse with $100 which is usually only worth $89.05 and $86.73, respectively, when comparing prices of the same products.
Varied: Map shows how $100 can be worth as much as $115.21 or as little as $84.96, depending on your zip code
In other states, like Missouri and Ohio, you can get a lot more for your dollar because the cost of living tends to be cheaper, so residents can buy more for the same price.
The figures, based on Bureau of Economic Analysis data from 2013, found that the states where $100 is worth the most are Mississippi ($115.21), Arkansas ($114.29), South Dakota ($114.16), Alabama ($114.03) and West Virginia ($113.12).
In contrast, $100 is actually worth the least in the District of Columbia ($84.96), Hawaii ($86.06), New York ($86.73), New Jersey ($87.34) and California ($89.05).
Different values: People living in expensive states like California and New York do worse with $100 which is usually worth $89.05 and $86.73 compared to $115.21 in Mississippi.
The contrast means that actual purchasing power is 36% higher in Mississippi than in the District of Columbia, so someone earning $50,000 after-tax in Mississippi, you should have an after-tax income of $68,000 $ in the District of Columbia to pay the same overall standard of living.
The Tax Foundation also looked at the differences between different metropolitan areas.
Prices in New York vary across the state, with purchasing power improving dramatically once outside the notoriously expensive New York metropolitan area, reports Yahoo Finance.
TOP VALUE 5 STATES
South Dakota, $114.29
West Virginia, $113.12
5-STATE MINERAL VALUE
District of Columbia, $84.96
New York, $86.73
New Jersey, $87.34
In Albany, $100 is about $101 and goes up to $106 in Buffalo.
The pattern repeats itself around densely populated cities like Seattle and Minneapolis, where the value of the dollar rises the further you go.
California, Illinois, Virginia, and Florida have the greatest state variation, with the biggest difference being in Chicago where $100 is worth $93.81, and in Danville, Illinois it goes up to $126.26 .
Differences in the relative value of cash in cities and states have major implications for federal and state tax and minimum wage policies, which are based on income, reports the Tax Foundation.
He said: ‘If actual incomes vary from place to place due to purchasing power, that counts for these policies.’