California seems to be the land of the disappearing dollar.
The Golden State has earned the dubious distinction of being the most expensive state in the country to stretch a buck, with a new nationwide ranking revealing that $100 buys just $90 worth of goods and services in the notoriously pricey state.
That’s last among all 50 states, according to a newly released analysis from personal finance website WalletHub, which examined how far Americans’ hard earned cash actually goes depending on where they live.
A WalletHub graphic depicts the real purchasing power value of $100 across different states. X/@wallethub
As Californians watch their paychecks evaporate under the weight of sky-high housing costs, grocery bills, and everyday expenses, residents elsewhere are getting considerably more bang for their buck.
In Arkansas and Mississippi, which claimed the top spots for purchasing power, the same $100 is worth a whopping $115 — a staggering $25 difference from California. And that’s before the taxman takes his bite.
Between having the nation’s highest state income tax brackets topping out above 13%, soaring gas taxes above 60 cents per gallon, astronomical local sales taxes, and jaw-dropping utility rates, the real-world value of a Californian’s paycheck shrinks long before the checkout aisle.
California’s rock-bottom $90 showing means residents effectively get 10% less purchasing power than the national benchmark. Tom H – stock.adobe.com
Oklahoma and Iowa weren’t far behind Arkansas and Mississippi at $114 apiece, followed by Alabama, Louisiana, and South Dakota at $113.
California’s rock-bottom $90 showing means residents effectively get 10% less purchasing power than the national benchmark. Even neighboring states offered some relief. In Nevada, $100 retains exactly $100 in purchasing power, while the same amount is worth $99 in Arizona and $97 in Oregon.
Across the country, Hawaii was the only state to come close to California’s dismal numbers, with $100 worth just $91. New Jersey followed at $92, while New York and Washington tied at $93.
The figures underscore the enormous financial divide between America’s expensive coastal states and more affordable communities in the South and Midwest, where everyday expenses eat up a smaller share of household budgets.
WalletHub summed up the predicament in a social media post accompanying its colorful nationwide map. “Your $100 might be worth more than you think or disappear faster than you can say ‘checkout,’” they wrote. For Californians, unfortunately, it’s the latter.
The analysis is based on the latest local price data from the Bureau of Economic Analysis.
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