Is Ohio a Cheap Place to Live? Cost of Living Breakdown

Ohio offers a financial advantage compared to many other U.S. states. Its affordability, measured by the cost of living, encompasses daily expenses like housing, transportation, groceries, and healthcare. Understanding these costs, along with the state’s tax structure and income levels, helps individuals assess if Ohio aligns with their financial goals.

Overall Cost of Living Comparisons

Ohio’s overall cost of living is 8% lower than the national average, positioning it as the 14th cheapest state. This affordability is a factor for individuals and families considering relocation. Housing costs are 12% below the national average, and utility expenses are 2% lower. While some categories, such as groceries, are slightly higher, Ohio generally offers a lower cost of living.

Key Expense Categories

Major expense categories for Ohio residents include housing, transportation, utilities, groceries, and healthcare. These collectively determine the practical cost of daily life within the state. Their typical costs often compare favorably to national figures.

Housing

Housing is a primary expenditure, and Ohio’s market offers accessible prices compared to many other states. The median home price in Ohio was $245,994 in the second quarter of 2025, significantly lower than the national median of $410,800. The rental market also reflects this affordability. The average rent for an apartment was $1,323 per month, which compares favorably to the national average of $1,749. The median rent of $1,444.10 remains below the national median of $1,529.01.

Utilities

Utility costs in Ohio contribute to the state’s overall affordability. The average monthly cost for utilities is $472, including electricity, natural gas, water, internet, and trash services. Ohio’s utility expenses are 2% lower than national averages.

Transportation

Transportation expenses are a significant portion of a household’s budget. An average Ohio household allocates $13,800 annually to transportation, with single adults spending $9,850 per year. Car insurance rates are notably lower than the national average; full coverage averages $1,500 annually, or $125 per month, compared to the national average of $1,791. Gasoline prices in Ohio are $3.15 per gallon, aligning with the national average of $3.14. Public transportation is available in major cities, though personal vehicle ownership remains prevalent.

Groceries and Food

An individual in Ohio spends $340 to $342 per month on groceries. For a family of four, the monthly grocery bill averages $1,369. These costs are often lower than the national average of $418.44 per person per month. Ohio residents spend $2,410 per year on average dining out. For example, a three-course meal for two in a mid-range restaurant might cost $60 in Cincinnati or $75 in Columbus.

Healthcare

Healthcare costs are an important component of the cost of living, and Ohio’s figures are generally more favorable than national averages. The average annual healthcare cost per person in Ohio is $6,845. For a family of four, these costs amount to $27,380 annually. A benchmark plan purchased through the Health Insurance Marketplace costs $435 per month, lower than the national average of $477. For a 40-year-old with a Silver plan, the average monthly premium is $536.

Taxation and Income Considerations

Ohio’s tax structure impacts the state’s overall affordability, encompassing income, sales, and property taxes. These tax obligations, alongside typical income levels, provide a clearer picture of residents’ financial capacity.

Income Tax

Ohio operates a progressive state income tax system for 2024, with rates ranging from 0% to 3.5%. The maximum tax rate was reduced from 3.75% to 3.5% in 2024. Many Ohio municipalities also impose their own income taxes, which can be as high as 3%. As of 2024, individuals under 18 are no longer required to pay municipal income tax. The state offers deductions, such as for contributions to homeownership savings accounts.

Sales Tax

The statewide sales tax rate in Ohio is 5.75%. Local jurisdictions, including counties and transit authorities, can levy additional sales taxes. This results in a combined sales tax rate ranging from 5.75% to 8%, depending on the specific location. Most retail goods, including clothing, are subject to this sales tax, though most services are typically exempt.

Property Tax

Property taxes in Ohio are assessed at the local level and vary significantly by county. Ohio’s effective property tax rate is 1.59%, which is higher than many states. This expense can add a notable amount to annual living costs. The specific amount depends on the property’s assessed value and local tax rates.

Income Context

The median household income in Ohio was $69,680 in 2024. This figure is lower than the national median household income. For a single adult, a livable wage in Ohio is $40,352 annually. While incomes are lower than the national average, the proportionally lower cost of living allows residents to maintain a comparable standard of living.

Regional Cost Variations

The cost of living in Ohio is not uniform across the state, with variations between urban centers, suburban areas, and rural communities. A person’s specific location can influence their overall expenses. Major urban centers like Columbus, Cleveland, and Cincinnati present higher costs, particularly for housing. In April 2024, the median home price in Columbus was $290,000, and in Cincinnati, it was $270,500. Cleveland’s median home price was $132,000, but its average rent was $1,558, higher than the state average. These cities often have increased costs for services and amenities due to higher demand. Suburban areas offer a moderate cost environment, balancing urban access with more affordable living expenses. Rural parts of the state generally have the lowest costs of living. For example, the average rent in Youngstown is $650 per month. Housing and services are less expensive in these less populated regions.