- Mississippi, Oklahoma, and Arkansas are the most affordable U.S. states to live in, with more than 95 points out of 100 for rent and food costs.
- Hawaii, New York, and California present challenges for digital nomads due to high rent and taxes with rankings as low as 50.
- Texas, Tennessee, and South Dakota don't impose income taxes, making them financially appealing for digital nomads.
According to a recent analysis by B2B marketplace DesignRush, Mississippi, Oklahoma, and Arkansas are the top three U.S. states where the cost of living is in line with the financial benefits of remote work.
To create the index, DesignRush assessed critical metrics that impact the daily lives of the modern mobile workforce, such as affordable housing, food prices, healthcare costs, and tax rates to pinpoint the states where digital nomads can thrive.
As the U.S. sees a significant shift in its workforce dynamics, these findings are particularly relevant.
17.3 million Americans, representing 11% of the workforce, currently identify as digital nomads, so there's a growing need to identify the states that best serve this expanding group.
"Our study supports the modern working class in their search for a suitable work-life balance while helping policymakers and business leaders grasp the latest employee preferences,"DesignRush General Manager Gianluca Ferrugia said.
Top 10 U.S. States for Remote Workers
1. Mississippi
As the best state in terms of affordability and livability for remote workers, Mississippi takes the top spot on the list with an exceptional score of 91.30. It received over 90 points in nearly every category except two, due to having expensive healthcare (86.5) and internet (73.1). Beyond financial advantages, Mississippi has a generally friendly atmosphere with all the coziness and warmth of southern hospitality.
2. Oklahoma
Coming in second is Oklahoma, boasting an unrivaled low cost of living (95.3) and food (100), which are among the lowest in the U.S. The Sooner State is beloved for its captivating and diverse landscape, with its rolling plains and woodland hills providing an idyllic backdrop for both work and play.
3. Arkansas
The Natural State earns its third-place ranking with a score of 88.63. It sets itself apart with its low cost of essential needs, such as housing (98.5) and food (98.6). Arkansas’ small towns and vibrant cities also offer a variety of cultural and recreational activities without the hustle and bustle of larger urban centers.
4. Texas
The Lone Star State comes in fourth place, coming in close with a score of 88.62. Digital nomads will love its vast landscapes, vibrant tech hubs, and favorable economic conditions. Texas also stands out for its zero-income-tax policy, which greatly increases the financial freedom of remote workers and entrepreneurs alike. Competitive transportation and healthcare costs make it a more attractive destination for those who wish to maximize their earnings while enjoying access to high-quality services.
5. Tennessee
Tennessee gets the fifth spot with a score of 88.30. It is an affordable place to live, with the state having no income tax. Food and transportation are also cheap, scoring over 90 points in each category. Tennessee is also a charming place, full of cultural richness and southern hospitality, that digital nomads can get used to.
6. North Dakota
North Dakota ranks sixth with a solid score of 88.22, thanks to very low housing costs. According to real estate marketplace Zillow, it has the lowest rent and food costs in the entire country. The state's beautiful landscapes and peaceful environment also provide the perfect backdrop for focused work. Despite its serene setting, North Dakota does not compromise on connectivity and accessibility. Remote workers will have an easy time staying in touch with clients and colleagues around the globe.
7. South Dakota
The Mount Rushmore State comes in seventh place with a score of 88.19. South Dakota has no income tax and provides cost-effective rent options (98.4). Its affordability, natural beauty, and friendly atmosphere make it a compelling choice for digital nomads who value a balanced and enriching lifestyle surrounded by some of America’s most breathtaking sceneries.
8. Ohio
This Midwestern state gets the eighth spot with a score of 87.58. Ohio offers the best of both worlds: the vibrancy of urban life without the hefty price tag associated with city living. The state's score reflects its low food costs (92.1) and average taxes (99.2). It is home to Columbus, Cleveland, and Cincinnati, cities that offer unique cultural experiences, bustling food scenes, and diverse entertainment options.
9. Missouri
The Show-Me State claims the ninth position with a score of 87.40, reflecting its status as a place that combines affordability with a high quality of life. Missouri has notably low housing costs (94) and overall reasonable living expenses. The state also possesses a quintessential Midwestern charm, with a warm and welcoming environment that's steeped in rich cultural history.
10. Alabama
Rounding up the top 10 with a score of 87.07 is Alabama. Anchored by low tax rates and modest living costs, its food costs are one of the three lowest in the country at 97.8 points. It has established itself as an attractive destination for digital nomads in pursuit of financial efficiency without sacrificing quality of life, with economic advantages that are complemented by a warm climate that beckons outdoor enthusiasts and those who prefer milder winters.
Methodology
Our scoring involved collecting raw data encompassing a range of factors, including tax rates, legal obligations, healthcare services, and internet availability, as well as cost and living affordability.
The data was then standardized by calculating Z-scores for each metric and normalizing the scores to a 50-100 scale for comparability. Following standardization, points are assigned to each metric reflecting its importance, and a weighted average for each location is calculated by multiplying each normalized score by its respective weight.
The locations were ranked based on their final scores, with higher scores indicating a more favorable assessment based on the combined factors.
Sources: Turbotax, Zillow, RentCafe, BroadbandSearch, and C2ER.
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