FI number by U.S. state (2026)

What this is (and how to read it)

Your FI number — the invested amount that makes work optional — is simply your annual spending divided by a safe withdrawal rate. At the classic 4% rate that's 25× what you spend in a year. Spending is the only input that varies here, and the biggest thing that moves spending between two otherwise identical households is where they live.

So we asked a simple question: what would it cost a nationally-average household to reach FI in each state? The national-average household spent $78,535 in 2024 — a national FI number of $1,963,375. We then re-price that same basket of spending state by state using the government's official measure of local price levels, and re-apply the 4% rule.

One thing to keep straight up front: this is what an average lifestyle would cost in each state — not what people there actually spend, and not your number. It's a clean, apples-to-apples benchmark. Your real number depends on your real budget — which is exactly what the calculator is for.

FI number by state, 2026 (full table)

All 50 states, alphabetical. Price level is the BEA all-items Regional Price Parity for 2024 (U.S. = 100). Est. annual spending re-prices the national-average household basket for that state; FI number is that spending × 25. Rank orders the states by cost (1 = most expensive). National average for reference: $78,535 spending → $1,963,375 FI number.

The District of Columbia isn't a state, but for reference its price level is 109.9 → an estimated FI number of $2,157,750 — just below California and Hawaii.

Methodology and sources

Two public, current, authoritative datasets — data vintage matched (both 2024) — and one transparent transformation. No figure here is invented or hand-tuned; you can reproduce every row from the two numbers below.

1. National spending baseline — $78,535, the average annual expenditures per consumer unit in 2024, from the U.S. Bureau of Labor Statistics Consumer Expenditure Survey (released 2025-12-19). For context, 2024 housing averaged $26,266 (33.4% of spending) and transportation $13,318 (17.0%) — together more than half.
2. State price levels — the all-items U.S. Bureau of Economic Analysis Regional Price Parities for 2024 (released 2026-02-19), an index with the U.S. average set to 100. A state at 110 has price levels about 10% above the national average; a state at 90 is about 10% below. We show the index to one decimal and rank states by BEA's full-precision value.
3. The 4% rule — FI number = annual spending × 25, the safe-withdrawal-rate framing from Bengen (1994) and the Trinity study. This assumes roughly a 30-year retirement; early retirees with 40–60 year horizons often plan at 3.25–3.5% (a bigger multiple), which raises every number here proportionally. See the 4% rule and safe withdrawal rate.

What this does and doesn't capture

• It's a re-priced average, not a local budget. We scale the same national basket by local prices. It answers "what would an average lifestyle cost here?" — not "what do locals spend?" (which also reflects incomes and habits, not just prices).
• Prices, not taxes. Regional Price Parities cover goods, rents and services — not state income tax. A no-income-tax state can be a better deal than its RPP alone suggests, and vice-versa.
• Average, not retiree-specific. The BLS baseline is all households; a retiree's mix differs — typically less commuting and no more payroll/pension contributions, but often more healthcare (7.9% of average spending in 2024, and rising with age).
• An estimate, not a guarantee. Rounding, a one-decimal price index, and the smooth-return assumption behind the 4% rule all mean these are ballpark benchmarks — a starting point to personalize, not a target to bank on.

Turn the benchmark into your number

A state benchmark is a fun headline; your own spending is the number that decides your life. If you already spend well below your state's average, your FI number is lower than the table says — and if you spend more, it's higher. The only way to know is to run your figures.

Enter your real annual spending and the free FI calculator returns your number and a rough date to financial independence — every assumption on screen, no signup needed.

FAQ

What is the FI number by state?

It is an estimate of the invested portfolio a nationally-average household would need to be financially independent in a given state: that state's cost-adjusted annual spending times 25 (the 4% rule). Using 2024 data it ranges from about $1,706,175 in Arkansas to about $2,173,450 in California. It's a benchmark, not your personal number — for that, use your own spending in the FI calculator.

Which state has the highest FI number in 2026?

California. Its price level (BEA Regional Price Parity 110.7, U.S. = 100) is the highest of the 50 states, giving a nationally-average household an estimated FI number of about $2,173,450. Hawaii, New Jersey, New York and Washington round out the five most expensive states.

Which state is cheapest to reach FI?

Arkansas, with the lowest state price level (RPP 86.9), needs an estimated $1,706,175. Mississippi, Iowa, Oklahoma and Louisiana are close behind. These estimates assume a nationally-average spending pattern scaled to local prices — your own budget is what actually decides your number.

How is the state FI number calculated?

Three inputs: (1) U.S. average annual household spending of $78,535 (BLS Consumer Expenditure Survey, 2024); (2) each state's all-items price level (BEA Regional Price Parity, 2024, U.S. = 100); (3) the 4% rule. Estimated state spending = $78,535 × RPP ÷ 100; FI number = that × 25. Full detail is in the methodology section above.

Does moving to a cheaper state actually lower my FI number?

Only to the extent your spending actually falls. The price gap is real — housing and services genuinely cost less in low-RPP states, and housing is where most of the difference lives. But a lower FI number only follows if you truly spend less there. Keep a high-cost lifestyle in a low-cost state and your FI number barely moves — the number tracks your spending, not the state average.

Does this include state income taxes?

No. Regional Price Parities measure the prices of goods, rents and services — not taxes. State income taxes can widen or narrow the real gap (several low-cost states levy no income tax, while some high-cost states tax heavily), so treat this table as a cost-of-living view, not an after-tax one. Model your own taxes in a full plan rather than reading them into this number.

Should I use these numbers or my own spending?

Your own, every time. This table answers a general question — "what would a nationally-average lifestyle cost here?" Your FI number answers the one that matters: "what does my life cost?" Put your real annual spending into the free FI calculator to get your number and a rough date to financial independence.

Calculate yours: FI and FIRE calculators

This table is a benchmark. Each calculator turns it into your number — for the full FI target or any FIRE variant.

• What is your FI number? →The formula, the 4% rule, and worked examples behind every number here.
• FI calculator →Your core FI number and a rough date to financial independence.
• Coast FIRE calculator →The smaller amount that grows to full FI on its own — stop saving, keep coasting.
• Barista FIRE calculator →How steady part-time income shrinks the portfolio you need to semi-retire.
• Lean FIRE calculator →Reach financial independence sooner on a deliberately frugal budget.
• Fat FIRE calculator →Fund a no-compromises, higher-spending early retirement.
• Chubby FIRE calculator →The comfortable middle band between lean and fat FIRE.
• Career change calculator →What a pay cut really costs you — the change to your FI date, in years.
• Can you afford a kid? →Daycare vs. one parent leaving work — the true cost in today's dollars.
• How much house can I afford? →The home price and payment you can carry, on the lender 28/36 rule.
• Salary needed to buy a house, by state →What a typical home takes in all 50 states — 2026 data, the same lender math.
• Rent vs. buy salary, by state →The salary to rent a 2BR vs. buy the typical home — and the gap, ranked.
• Years to save a down payment, by state →How long 20% down takes at the saving rate Americans actually average — ranked.
• Net worth percentile calculator →Where your net worth ranks by age, on real 2022 Federal Reserve data.