In general, the Northeast is one of the priciest areas—along with Alaska, Hawaii and California. The Southeast and Midwest are on average less expensive.
"Regional price differences are strikingly large, and have serious policy implications. The same amount of dollars are worth almost 40 percent more in Mississippi than in DC, and the differences become even larger if metro area prices are considered instead of statewide averages," the foundation noted.
Read MoreThe premium for raising kids in the city
The data's tax policy consequences are especially important since taxes are based on nominal income, rather than adjusted purchasing power, it added. This means that a state's residents could be footing higher tax bills despite having lower purchasing power—essentially suffering one-two punches.
To read the entire Tax Foundation post, click here.