See how your salary needs change by state
The Cost of Living (COLA) Calculator helps military members and veterans compare living expenses between states or regions. While BAH adjusts for housing costs at your duty station, COLA considers the broader picture: income taxes, sales taxes, gas prices, food costs, healthcare costs, and general expenses. A $70,000 salary in Texas (no state income tax, moderate costs) provides similar purchasing power to $85,000-90,000 in California (13.3% top state tax rate, high costs everywhere).
State Income Tax: The single biggest variable. States like Texas, Florida, Nevada, Washington, and Tennessee have no state income tax. California's top rate is 13.3%, New York's is 10.9%, and several states are in the 5-7% range. For a military member earning $75,000, moving from Texas to California costs $5,000-8,000 per year in state income tax alone.
Housing Costs: Even with BAH, location matters for purchasing homes or long-term planning. Median home prices range from $200,000 in affordable states like Oklahoma and West Virginia to $700,000+ in California and Hawaii. Property taxes vary from 0.3% in Hawaii to 2.5% in New Jersey. These factors affect whether buying makes sense and long-term wealth building potential.
Daily Expenses: Groceries cost 20-30% more in high-cost areas. Gas prices vary by $1-2 per gallon between states. Auto insurance can be 2-3x higher in expensive states. Healthcare costs, childcare, utilities, and general services all vary significantly. These "invisible" costs add up to hundreds per month in differences between high and low cost areas.
Fort Hood, Texas (E-6, 10 years, married, 2 kids):
Base Pay: $5,268/month | BAH: $1,500 | BAS: $477 | Total: $7,245/month
State Income Tax: $0 | Groceries: $800/month | Gas: $200/month
Total Monthly Cost: ~$5,500 | Net Disposable: ~$1,745/month
Camp Pendleton, California (same E-6):
Base Pay: $5,268/month | BAH: $2,940 | BAS: $477 | Total: $8,685/month
State Income Tax: ~$350/month | Groceries: $1,100/month | Gas: $300/month
Total Monthly Cost: ~$7,700 | Net Disposable: ~$985/month
Result: Despite earning $1,440/month more in gross military compensation in California, the E-6 has $760 LESS disposable income after accounting for taxes and higher costs. This is why many service members prefer assignments in low-cost states despite lower BAH rates.
Military retirees should strongly consider state income tax treatment of military retirement pay. Most states don't tax it, some partially exempt it, and some tax it fully. States like Florida, Texas, and Nevada offer no state income tax on any income including pensions. States like Illinois, Mississippi, and Pennsylvania don't tax military pensions specifically but do tax other income. States like California and Vermont tax military pensions at full state rates. For a retiree receiving $36,000/year pension, this is a $2,000-4,000/year difference depending on state.
Beyond taxes, consider healthcare access (VA medical centers and military treatment facilities), veteran community size, affordable housing, and climate. Florida and Texas are popular because they combine no state income tax, large veteran populations, good VA healthcare access, and affordable living. North Carolina and Virginia are popular despite having state income tax because of massive military presence, excellent VA facilities, and moderate costs. Research your options – where you retire matters enormously for long-term finances.
A cost of living comparison measures how expensive it is to live in one area versus another. This tool compares military CONUS COLA areas, looking at factors like housing, groceries, transportation, and utilities. A higher cost index means more expensive — San Francisco (index 8) costs significantly more than Baltimore (index 1) for non-housing expenses.
California has the highest military cost of living, with San Francisco (CONUS COLA index 8), Oakland (index 6), Santa Clara County (index 5), Los Angeles and Sacramento (index 3) all qualifying for CONUS COLA. New York City (index 4) and Seattle (index 4) also rank among the highest-cost areas for military members.