These States Spend the Biggest Share of Their Paychecks on Groceries, New Report Finds

These States Spend the Biggest Share of Their Paychecks on Groceries, New Report Finds



Sky-high grocery prices are hitting folks across the economic spectrum, but some communities are feeling the crunch more than others. Socioeconomic factors, such as states’ median wages, influence the final impact of that supermarket bill — and the numbers back it up. 

A new WalletHub report reveals that shoppers in Mississippi and West Virginia are feeling the most strain from rising grocery costs. The study, which examines the states where consumers might spend the most considerable proportion of their paychecks on food, breaks down the prices of 26 common product categories across all 50 states. 

According to the research, people in states with the lowest median income (such as Mississippi, West Virginia, and Arkansas) often spend the highest proportion of their paychecks on groceries.  

“Rising grocery prices can really add to the daily stress for families, especially in states where residents are already spending a large portion of their income on food,” WalletHub analyst Chip Lupo tells Food & Wine. “When grocery prices continue to rise, the added costs take an even bigger chunk out of household budgets, forcing tough decisions such as cutting back on healthier options or other essentials.”

Mississippi is the most economically stretched state, with approximately 2.64% of its median monthly household income spent on groceries. Although groceries in the Magnolia State are the ninth least expensive in the country, the lower median wage of $52,985 means any increases in grocery prices can significantly impact shoppers’ budgets. 

In West Virginia, residents may allocate about 2.57% of their overall budget to grocery essentials. For a state with the second-lowest median income in the country ($55,217 per year), grocery prices are also relatively high. (According to WalletHub, this state ranks ninth in the cost of eggs and seventh in potatoes.)

If you’re considering relocating to a place with lower grocery costs, you might begin your housing search on the East Coast. New Jersey households tend to spend less of their income at the supermarket, with only 1.5% of the median monthly household income going to food expenses. Maryland, Massachusetts, and New Hampshire also scored well in this report. 

“WalletHub’s study highlights how grocery shopping in the U.S. is becoming increasingly burdensome, particularly for families in states with low annual incomes,” says Lupo. “The disparity between grocery costs and income is a key issue, as it shows how affordability is more pronounced in certain parts of the country, adding stress to day-to-day life for many U.S. families.”

How to Save on Groceries

  • Buy staples in bulk: Lupo recommends stocking up on frequently used household items, especially when deals or coupons are available. Warehouse outlets, like Costco, might also offer comparatively low prices on larger quantities. 
  • Skip the name-brand box: Generic products can help stretch your grocery budget, especially on staples like pasta and rice. You might also consider budget-friendly grocery chains like Aldi or other discounted retailers. 
  • Invest time in meal planning: Careful meal planning can ensure that no produce goes to waste and impulse purchases don’t become a habit.
  • Prioritize meal essentials and skip luxury buys: You might have to spend more time preparing meals, but cutting out unnecessary convenience items can also reduce spending. 
  • Sign up for loyalty points: Lupo recommends taking full advantage of grocery stores’ reward programs, app coupons, and other available discounts. 
  • Prioritize shopping lists: Reorganize your grocery list based on what’s most important to your household.

To put the report together, the WalletHub analyzed data from two sources — the Council for Community and Economic Research and the U.S. Census Bureau — with figures current as of January 22. (So, it’s important to note that the report likely does not account for the most recent wave of price hikes and increases in egg prices.) Researchers totaled the costs of 26 common household product categories, such as vegetables and dairy, and compared them against the median monthly income in each state. They then ranked the sample from the highest to the lowest relative grocery cost.

To address external economic factors, economists and analysts like Lupo encourage families to prioritize a streamlined budget and consider cheaper options for budget-friendly shopping. These include affordable staples and warehouse grocery hauls.

STATE  MEDIAN INCOME  PERCENTAGE SPENT ON GROCERIES 
Mississippi  $52,985  2.64% 
West Virginia  $55,217  2.57% 
Arkansas  $56,335  2.49% 
Kentucky  $60,183  2.41% 
Louisiana  $57,852  2.39% 
New Mexico  $58,722  2.36% 
Alabama  $59,609  2.34% 
South Carolina  $63,623  2.27% 
Tennessee  $64,035  2.23% 
Oklahoma  $61,364 2.21% 
Montana  $66,341 2.20% 
Ohio  $66,990  2.19% 
North Carolina  $66,186  2.17% 
Maine  $68,251  2.13% 
Indiana  $67,173  2.13% 
Florida  $67,917  2.13% 
Michigan  $68,505  2.12% 
Missouri  $65,920  2.11% 
Nevada  $71,646  2.04% 
Arizona  $72,581  2.04% 
South Dakota  $69,457  2.02% 
Kansas $69,747  2.02% 
Idaho  $70,214  2.01% 
Wisconsin  $72,458  2.00% 
Oregon  $76,632  2.00% 
Wyoming  $72,495  2.00% 
Vermont  $74,014  1.99% 
Iowa  $70,571  1.99% 
Pennsylvania  $73,170  1.98% 
Georgia  $71,355  1.98% 
Alaska  $86,370  1.95% 
Nebraska  $71,722  1.95% 
Texas  $73,035  1.91% 
North Dakota  $73,959  1.87% 
New York  $81,386  1.87% 
Illinois  $78,433  1.84% 
Delaware $79,325 1.82%
Rhode Island  $81,370   1.78%  
Washington  $90,325  1.71% 
California  $91,905  1.69% 
Hawaii  $94,814  1.68% 
Colorado  $87,598  1.67% 
Virginia  $87,249  1.66% 
Minnesota  $84,313  1.66% 
Utah  $86,833  1.63% 
Connecticut  $90,213  1.62% 
New Hampshire  $90,845  1.60% 
Massachusetts  $96,505  1.54% 
Maryland  $98,461  1.54% 
New Jersey  $97,126  1.50% 





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