The cost of living is critical when deciding where to live, work, and do business. When housing, food, transportation, health care, clothing, and entertainment are more expensive, people need to earn more to maintain the standard of living they expect.

Over the last three decades, rising prices for many life essentials have made it harder for Americans to get by, according to the White House.

Stacker used data from the Council for Community and Economic Research to determine which states had the lowest cost of living in 2022.

Each state's cost of living index was calculated using data from a voluntary survey to find the average index of metro areas and cities measured in each state. Data was rounded to the nearest tenth of a percent.

The Cost of Living Index is calculated based on the price of more than 60 goods and services. Each state's index is a percentage of the U.S. average, set at 100. For example, a state with an index score of 90 has a cost of living 10% lower than the national average.

Stacker found that in 2022, most of the least expensive states were in the South and Midwest.

LOOK: The 25 least expensive states to live in

Here are the top 25 states with the lowest cost of living in 2022, using data Stacker culled from the Council for Community and Economic Research.

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