What’s the cost of living in Oklahoma?
Wondering about the cost of living in Oklahoma? This article summarizes everything you need to know, from tax rates to healthcare costs.
When considering a move to a new state, understanding the cost of living is vital for effective budgeting and financial planning. If Oklahoma is at the top of your list, here are some current statistics related to the cost of living in the state that could help you make up your mind.
The average cost of living in Oklahoma
Nearly 4 million people call Oklahoma home. The state boasts one of the lowest cost of living in the country.
According to data gathered in 2022 from MERIC, the Missouri Economic Research and Information Center, the state ranks 2nd in a list of states with the lowest to the highest cost of living.
While to the Bureau of Economic Analysis 2021 Personal Consumption Expenditures, data shows that Oklahoma's average cost of living is $38,650 per year. This is the lowest average total expenditure for the entire Southwest region, encompassing Texas, New Mexico, and Arizona.
Housing costs in Oklahoma
As of March 2023, the average home value in Oklahoma is estimated to be around $188,453, according to the Zillow Home Value Index as of March 2023.
It’s important to note that housing prices can significantly differ across various regions within the state. Here are some examples of typical home prices based on Zillow's data:
| City | Average Home Value |
|---|---|
| Oklahoma City | $199,385 |
| Tulsa | $191,984 |
| Norman | $240,137 |
| Broken Arrow | $263,013 |
| Lawton | $122,295 |
The average price of rental apartments nationwide is $1,702, while the average monthly rent in Oklahoma City, OK is $960.
Utility costs in Oklahoma
Utility costs play a significant role in Oklahoma's overall cost of living. According to Forbes, the average monthly cost is around $407.
| Utility | Average cost in Oklahoma |
|---|---|
| Energy bill | $119.69 |
| Monthly water bill | $35 |
| Internet | $20 |
| Natural gas | $71 |
| Phone bill | $114 |
| Streaming | $48 |
Grocery and food costs in Oklahoma
When it comes to groceries and food costs, Oklahoma generally aligns with prices found elsewhere in the United States.
According to Zippia, those in Oklahoma City pay $346 on average each month.
According to 2021 data from the Bureau of Labor Statistics, the average spending on food at home is $5,259 annually, or about $438 per month for US households.
Transportation costs in Oklahoma
Transportation costs, including gas prices and vehicle maintenance, impact Oklahoma's overall cost of living.
According to MIT, a single adult with no children can expect to pay upwards of $5,400.
Gas prices in Oklahoma are typically in and around the national average. Oklahoma was lower than the national average at the time of writing. These prices fluctuate over time.
It is also worth noting that prices can vary across different regions within the state.
Healthcare costs in Oklahoma
Understanding healthcare expenses is crucial when considering the cost of living.
The specific healthcare costs in Oklahoma can vary depending on factors such as insurance coverage and individual circumstances. Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates.
MIT estimates:
| Scenario | Annual healthcare expenditure |
|---|---|
| One adult, no children | $2,991 |
| One adult, one child | $10,128 |
| One adult, two children | $10,138 |
| Two adults (one working), no children | $7,371 |
| Two adults (one working), one child | $10,138 |
| Two adults (one working), two children | $10,063 |
| Two adults (two working), no children | $7,371 |
| Two adults (two working), one child | $10,138 |
| Two adults (two working), two children | $10,063 |
Childcare costs in Oklahoma
Families in Oklahoma currently pay around $7,896 per year for childcare for one child. This figure doubles for two children.
However, it's important to note that this figure can vary across the state.
Taxation in Oklahoma
Oklahoma’s state income tax operates on a progressive system. The rates range between 0.25% and 4.75%.
Here's a comparison of income tax rates among some neighboring states:
| State | Income Tax Rates |
|---|---|
| Oklahoma | 0.25% - 4.75% (progressive tax rate) |
| Texas | No state income tax |
| Arkansas | 0.9% - 6.6% (progressive tax rate) |
| Missouri | 1.5% - 5.4% (progressive tax rate) |
| Kansas | 3.1% - 5.7% (progressive tax rate) |
The sales tax rate in Oklahoma is 4.5%. However, it's important to note that sales tax rates can vary by city and county in Oklahoma. In addition to the state sales tax, local sales taxes may be imposed by municipalities and counties. The combined sales tax rate, including state and local taxes, can range from 4.5% to 11%, depending on the location.
The bottom line
The amount of money needed to live comfortably in Oklahoma can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think.
It's essential to consider these factors, along with personal circumstances and preferences, when evaluating the cost of living in Oklahoma. In addition, consulting with a financial advisor can provide valuable insights and assistance in managing expenses and financial planning.
Whether you’re retirement planning or considering relocating to chase a new career, Unbiased can assist you with your move's financial ins and outs. Find the right advisor for your needs today.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.