Money

These are the 15 cheapest states in America

Just as prices vary worldwide, the cost of living in the U.S. can vary drastically from state to state. While the cost of living is exorbitantly expensive in Hawaii and New York, it's far more affordable in Nebraska, Michigan and Alabama.

GOBankingRates ranked all 50 U.S. states and the District of Columbia according to cost of living to determine the most and least expensive places across the country.

To determine the order, GOBankingRates evaluates each state and Washington D.C. on six factors critical to the cost of living, using data from the Missouri Economic Research and Information Center. These metrics include housing, groceries, utilities, transportation, health care and miscellaneous expenses.

All of the data is then indexed in comparison to the average cost of living in the U.S. to determine if each state is more or less expensive than average and by how much.

These are the 15 cheapest states in America:

15. Iowa

Housing: 18.6 percent less expensive
Transportation: 3.3 percent less expensive
Groceries: 4.7 percent less expensive

Des Moines, Iowa.
Eddie Brady | Getty Images
Des Moines, Iowa.

14. Georgia

Housing: 24.2 percent less expensive
Transportation: 6.7 percent less expensive
Groceries: 0.9 percent less expensive

Atlanta reflected in the lake of Piedmont Park.
Giorgio Fochesato | Getty Images
Atlanta reflected in the lake of Piedmont Park.

13. Nebraska

Housing: 14.7 percent less expensive
Transportation: 6.2 percent less expensive
Groceries: 3.8 percent less expensive

Omaha, Nebraska
Walter Bibikow | Getty Images
Omaha, Nebraska

12. Alabama

Housing: 26 percent less expensive
Transportation: 7.1 percent less expensive
Groceries: 2.3 percent less expensive

Birmingham, Alabama.
Sean Pavorie | Getty Images
Birmingham, Alabama.

11. Missouri

Housing: 24.6 percent less expensive
Transportation: 6.6 percent less expensive
Groceries: 3.3 percent less expensive

Branson Missouri's downtown with waterfront.
JeremyMasonMcGraw.com
Branson Missouri's downtown with waterfront.

10. Kentucky

Housing: 19.5 percent less expensive
Transportation: 2.6 percent less expensive
Groceries: 11.1 percent less expensive

Kentucky Countryside
Getty Images
Kentucky Countryside

9. Texas

Housing: 15.5 percent less expensive
Transportation: 6.3 percent less expensive
Groceries: 10.5 percent less expensive

A Houston METRORail light rail train in Downtown Houston.
Davel5957 | Getty Images
A Houston METRORail light rail train in Downtown Houston.

8. Kansas

Housing: 22.6 percent less expensive
Transportation: 7.5 percent less expensive
Groceries: 6.4 percent less expensive

Wichita, Kansas
Davel5957 | Getty Images
Wichita, Kansas

7. Tennessee

Housing: 22.5 percent less expensive
Transportation: 10.1 percent less expensive
Groceries: 7.3 percent less expensive

Nashville, TN
Bruce Yuanyue Bi/Lonely Planet Images via Getty Images
Nashville, TN

6. Idaho

Housing: 77.8 percent less expensive
Transportation: 6.1 percent more expensive
Groceries: 14.6 percent less expensive

Boise, Idaho
Anna Gorin | Getty Images
Boise, Idaho

5. Oklahoma

Housing: 23.3 percent less expensive
Transportation: 11.9 percent less expensive
Groceries: 7 percent less expensive

Tulsa, Oklahoma
Davel5957 | Getty Images
Tulsa, Oklahoma

4. Arkansas

Housing: 22.3 percent less expensive
Transportation: 10.9 percent less expensive
Groceries: 7.3 percent less expensive

Hot Springs, Arkansas
Ionas Kaltenbach | Lonely Planet Images | Getty Images
Hot Springs, Arkansas

3. Michigan

Housing: 22.9 percent less expensive
Transportation: 2.4 percent less expensive
Groceries: 10.4 percent less expensive

Detroit, Michigan
Paul Marotta | Getty Images
Detroit, Michigan

2. Indiana

Housing: 24.2 percent less expensive
Transportation: 8.4 percent less expensive
Groceries: 7.6 percent less expensive

Indianapolis, Indiana
John J. Miller Photogrpahy | Getty Images
Indianapolis, Indiana

1. Mississippi

Housing: 31.6 percent less expensive
Transportation: 6.9 percent less expensive
Groceries: 5.4 percent less expensive

The historic district of Hattiesburg, Mississippi
Csfotoimages | Getty Images
The historic district of Hattiesburg, Mississippi