The State-By-State Food Cost Reality: Where Grocery Bills Bite Hardest Into Your Paycheck

When most people think about expensive living, California and Hawaii typically come to mind. Yet surprising research data reveals the true landscape of food cost by state tells a different story entirely. According to recent analysis using Bureau of Labor Statistics Consumer Expenditure Survey data, the states where households spend the largest share of their income on groceries aren’t the coastal high-income powerhouses many would assume.

The Sun Belt Squeeze: An Unexpected Pattern

The data uncovers a striking geographic concentration: seven of the ten states with the most burdensome grocery expenses cluster in America’s Sun Belt region. This pattern suggests that while overall cost of living varies, food affordability pressures follow a distinct regional pattern.

Mississippi leads the nation, with residents dedicating 10.57% of their income to groceries—spending an average of $5,805 annually in 2025, up 5.70% from the previous year. Just behind sits West Virginia at 10.11%, where the average food cost reached $5,853. This means households in these states are allocating roughly 1 out of every 10 dollars earned toward groceries alone.

The Sun Belt dominance continues with Arkansas (9.79%), Louisiana (9.75%), New Mexico (9.54%), Alabama (9.52%), Oklahoma (9.11%), and South Carolina (8.96%) all ranking within the ten most challenging states for food affordability.

The Surprising Truth About “Expensive” States

Here’s what contradicts conventional wisdom: Hawaii ranked only 22nd nationally, with residents spending 8.29% of income on groceries despite having the nation’s highest absolute grocery bills at $8,147 annually. California placed even lower at 42nd, with just 6.84% of income devoted to food costs—a reflection of higher median household incomes in those states.

Notable Trends in Food Costs by State

South Dakota experienced the steepest one-year increase, with food costs jumping 12.56% between 2024 and 2025. Montana saw notable pressure too, with a 9.49% year-over-year spike pushing its annual grocery cost to $6,325. These accelerating prices compound the squeeze for households already managing tight food budgets.

Kentucky (9.67%), now ranking fifth, represents another critical pressure point, where the average household spends $6,035 on groceries yearly.

Regional Insights

Beyond the Sun Belt concentration, several other states warrant attention: Alaska (8.83% of income) and Tennessee (8.72%) show meaningful burden despite different geographic locations. Florida rounds out the top tier at 8.87%, reflecting similar pressures to its Sun Belt neighbors.

The data reveals that food cost by state correlates more directly with median household income levels and local wage structures than with traditional “cost of living” rankings. Lower-income states face compound pressure: both higher food prices and lower incomes combine to create severe grocery affordability challenges.

What This Means for Household Budgets

For a household in Mississippi spending $5,805 annually on groceries while dedicating over 10% of income to this category, food represents a significant fixed expense. Meanwhile, a California household spending more in absolute terms ($6,586) but allocating only 6.84% of income reflects the income differential that masks true affordability pressure.

States like Montana, Alaska, and several northeastern states show interesting patterns where absolute costs rank high but income percentages remain moderate—a direct result of higher median earnings in those regions.

Understanding food cost by state through this lens—not just absolute dollars but income share—provides crucial perspective on genuine household financial pressure across America’s different regions.