The Price of This Famous Sandwich Is Getting Absurd

24/7 Wall St. Insights

In one state, you’ll pay 37.1% higher than the national average price for a Big Mac — are you ready to grab your wallet?
The Big Mac Index was developed by the Economist as a measure of financial parity across borders.
Higher fast food costs signal a higher cost of living, which can have detrimental effects on mental health (financial stress) or quality-of-life (housing issues).
Also: 2 Dividend Legends to Hold Forever

Introduced in 1967 in Pittsburgh, and in the greater United States the following year, McDonald’s’ Big Mac is synonymous with the fast food giant — and America’s love of delicious, convenient dining options. Made with two beef patties stacked with cheese, lettuce, onions, pickles, and that special sauce we all know and love, the Big Mac has captured the taste buds of millions. The price reflects both growing food and living costs across the country. In short, the Big Mac is actually a great indicator of economic trends. (Is the McDonald’s $5 value meal in trouble?)

To this end, the Economist, a weekly newspaper focused on covering culture, politics, and international business, developed the Big Mac Index. By showing how the price of the Big Mac differs from state to state, and even across international borders, the Big Mac Index underscores financial parity. The current average Big Mac price is $5.17, though prices range between $4.19 and $7.09. After adjusting for income, taxes, and cost of living, the “true price” of a Big Mac ranges from $3.44 to $6.54. Using the Big Mac Index, this suggests that states with higher Big Mac costs may also have higher costs-of-living in general. Higher costs of living may correlate with higher levels of debt, hosuing challenges, and difficulties with savings. (These are the most expensive states to live in.)

To identify the “true cost” of a Big Mac in each state, 24/7 Wall St. adjusted the average price by the state’s disposable income per capita (income after taxes) and cost of living (based on regional price parities.) In other words, considering income, taxes, cost of living, and actual Big Mac price in each state — we calculated the true cost for residents living in that state. The 50 states were then ranked by the “true cost” of a Big Mac.

The prices for each state and the national average price of $5.17 came from Zippia’s How Much A Big Mac Costs In Every State and are as of August 2023. Disposable income per capita figures, which are income per capita figures after taxes, are for 2022 and came from the Bureau of Labor Statistics. The national per capita disposable income was $55,832 that year. Regional price parities for 2021, which express the cost of living in the state, are from the Bureau of Economic Analysis. Population data came from the Census Bureau’s 2022 American Community Survey. This is the most up-to-date information available at this time. Additionally, we should note the idea came from Pantry and Larder, though we took a different approach.

Why Are We Writing About the Big Mac?

The Big Mac Index is just one of many ways economists assess the different factors that impact the “ordinary” person and how much money they have to spend. Since its opening in April 1955, McDonald’s has reigned supreme worldwide. With around 40,275 locations around the globe, it’s easy to see how many menu items are increasingly popular. The Big Mac was first introduced in 1967, and this popular burger has come a long way since. It is estimated that 900 million are sold annually globally, and 550 million are sold in the US alone. But with increasing inflation and cost-of-living, it could signal the downfall of fast food — especially if some options cost too much to handle.

Here are the states where a Big Mac is unaffordable:

50. Wyoming

“True cost” of a Big Mac considering income and cost of living: $3.44
Actual price of a Big Mac, Aug 2023: $4.19, 19.0% lower than national avg price – 2nd lowest
Disposable income, 2022: $62,227, 11.5% higher than national avg – 9th highest
Cost of living, 2021: 8.6% lower than national avg – 14th lowest
Population, 2022: 581,381

49. South Dakota

“True cost” of a Big Mac considering income and cost of living: $3.83
Actual price of a Big Mac, Aug 2023: $4.54, 12.2% lower than national avg price – 12th lowest
Disposable income, 2022: $59,688, 6.9% higher than national avg – 11th highest
Cost of living, 2021: 9.9% lower than national avg – 7th lowest
Population, 2022: 909,824

48. Nebraska

“True cost” of a Big Mac considering income and cost of living: $3.94
Actual price of a Big Mac, Aug 2023: $4.29, 17.0% lower than national avg price – 6th lowest
Disposable income, 2022: $55,766, 0.1% lower than national avg – 19th highest
Cost of living, 2021: 8.2% lower than national avg – 16th lowest
Population, 2022: 1,967,923

47. Pennsylvania

“True cost” of a Big Mac considering income and cost of living: $4.12
Actual price of a Big Mac, Aug 2023: $4.29, 17.0% lower than national avg price – 6th lowest
Disposable income, 2022: $56,034, 0.4% higher than national avg – 18th highest
Cost of living, 2021: 3.6% lower than national avg – 23rd highest
Population, 2022: 12,972,008

46. Washington

“True cost” of a Big Mac considering income and cost of living: $4.19
Actual price of a Big Mac, Aug 2023: $4.49, 13.2% lower than national avg price – 11th lowest
Disposable income, 2022: $65,210, 16.8% higher than national avg – 4th highest
Cost of living, 2021: 8.9% higher than national avg – 5th highest
Population, 2022: 7,785,786

45. Kansas

“True cost” of a Big Mac considering income and cost of living: $4.35
Actual price of a Big Mac, Aug 2023: $4.49, 13.2% lower than national avg price – 11th lowest
Disposable income, 2022: $52,484, 6.0% lower than national avg – 23rd lowest
Cost of living, 2021: 8.8% lower than national avg – 12th lowest
Population, 2022: 2,937,150

44. Ohio

“True cost” of a Big Mac considering income and cost of living: $4.38
Actual price of a Big Mac, Aug 2023: $4.29, 17.0% lower than national avg price – 6th lowest
Disposable income, 2022: $50,577, 9.4% lower than national avg – 18th lowest
Cost of living, 2021: 7.5% lower than national avg – 19th lowest
Population, 2022: 11,756,058

43. North Carolina

“True cost” of a Big Mac considering income and cost of living: $4.41
Actual price of a Big Mac, Aug 2023: $4.19, 19.0% lower than national avg price – 2nd lowest
Disposable income, 2022: $49,728, 10.9% lower than national avg – 16th lowest
Cost of living, 2021: 6.2% lower than national avg – 23rd lowest
Population, 2022: 10,698,973

42. Florida

“True cost” of a Big Mac considering income and cost of living: $4.45
Actual price of a Big Mac, Aug 2023: $4.29, 17.0% lower than national avg price – 6th lowest
Disposable income, 2022: $54,596, 2.2% lower than national avg – 21st highest
Cost of living, 2021: 1.4% higher than national avg – 15th highest
Population, 2022: 22,244,823

41. Indiana

“True cost” of a Big Mac considering income and cost of living: $4.48
Actual price of a Big Mac, Aug 2023: $4.40, 14.9% lower than national avg price – 8th lowest
Disposable income, 2022: $50,796, 9.0% lower than national avg – 19th lowest
Cost of living, 2021: 7.3% lower than national avg – 20th lowest
Population, 2022: 6,833,037

40. Iowa

“True cost” of a Big Mac considering income and cost of living: $4.50
Actual price of a Big Mac, Aug 2023: $4.69, 9.3% lower than national avg price – 17th lowest
Disposable income, 2022: $52,071, 6.7% lower than national avg – 20th lowest
Cost of living, 2021: 10.4% lower than national avg – 5th lowest
Population, 2022: 3,200,517

39. Wisconsin

Plastic burger, salad, tomato, frying potato with on pink background. Horizontal orientation. Children's toy. Concept of harmful artificial food. Plastic. Not organic. Not useful.

“True cost” of a Big Mac considering income and cost of living: $4.51
Actual price of a Big Mac, Aug 2023: $4.59, 11.2% lower than national avg price – 13th lowest
Disposable income, 2022: $53,062, 5.0% lower than national avg – 25th highest
Cost of living, 2021: 6.7% lower than national avg – 21st lowest
Population, 2022: 5,892,539

38. Nevada

“True cost” of a Big Mac considering income and cost of living: $4.51
Actual price of a Big Mac, Aug 2023: $4.49, 13.2% lower than national avg price – 11th lowest
Disposable income, 2022: $53,076, 4.9% lower than national avg – 24th highest
Cost of living, 2021: 4.5% lower than national avg – 25th highest
Population, 2022: 3,177,772

37. Minnesota

“True cost” of a Big Mac considering income and cost of living: $4.60
Actual price of a Big Mac, Aug 2023: $4.80, 7.2% lower than national avg price – 21st lowest
Disposable income, 2022: $57,359, 2.7% higher than national avg – 16th highest
Cost of living, 2021: 1.6% lower than national avg – 19th highest
Population, 2022: 5,717,184

36. Utah

“True cost” of a Big Mac considering income and cost of living: $4.67
Actual price of a Big Mac, Aug 2023: $4.39, 15.1% lower than national avg price – 7th lowest
Disposable income, 2022: $49,632, 11.1% lower than national avg – 15th lowest
Cost of living, 2021: 5.4% lower than national avg – 25th lowest
Population, 2022: 3,380,800

35. North Dakota

“True cost” of a Big Mac considering income and cost of living: $4.67
Actual price of a Big Mac, Aug 2023: $5.39, 4.3% higher than national avg price – 17th highest
Disposable income, 2022: $58,659, 5.1% higher than national avg – 13th highest
Cost of living, 2021: 8.9% lower than national avg – 11th lowest
Population, 2022: 779,261

34. Oklahoma

“True cost” of a Big Mac considering income and cost of living: $4.79
Actual price of a Big Mac, Aug 2023: $4.69, 9.3% lower than national avg price – 17th lowest
Disposable income, 2022: $49,398, 11.5% lower than national avg – 12th lowest
Cost of living, 2021: 9.7% lower than national avg – 8th lowest
Population, 2022: 4,019,800

33. Louisiana

“True cost” of a Big Mac considering income and cost of living: $4.89
Actual price of a Big Mac, Aug 2023: $4.69, 9.3% lower than national avg price – 17th lowest
Disposable income, 2022: $48,882, 12.4% lower than national avg – 9th lowest
Cost of living, 2021: 8.7% lower than national avg – 13th lowest
Population, 2022: 4,590,241

32. Virginia

“True cost” of a Big Mac considering income and cost of living: $4.93
Actual price of a Big Mac, Aug 2023: $4.99, 3.5% lower than national avg price – 24th lowest
Disposable income, 2022: $57,789, 3.5% higher than national avg – 15th highest
Cost of living, 2021: 2.3% higher than national avg – 13th highest
Population, 2022: 8,683,619

31. Tennessee

“True cost” of a Big Mac considering income and cost of living: $4.94
Actual price of a Big Mac, Aug 2023: $5.09, 1.5% lower than national avg price – 25th highest
Disposable income, 2022: $52,262, 6.4% lower than national avg – 22nd lowest
Cost of living, 2021: 9.1% lower than national avg – 10th lowest
Population, 2022: 7,051,339

30. Connecticut

“True cost” of a Big Mac considering income and cost of living: $5.04
Actual price of a Big Mac, Aug 2023: $6.09, 17.8% higher than national avg price – 6th highest
Disposable income, 2022: $69,247, 24.0% higher than national avg – 2nd highest
Cost of living, 2021: 2.6% higher than national avg – 11th highest
Population, 2022: 3,626,205

29. Kentucky

“True cost” of a Big Mac considering income and cost of living: $5.07
Actual price of a Big Mac, Aug 2023: $4.69, 9.3% lower than national avg price – 17th lowest
Disposable income, 2022: $46,016, 17.6% lower than national avg – 4th lowest
Cost of living, 2021: 10.9% lower than national avg – 3rd lowest
Population, 2022: 4,512,310

28. Michigan

“True cost” of a Big Mac considering income and cost of living: $5.12
Actual price of a Big Mac, Aug 2023: $4.79, 7.4% lower than national avg price – 20th lowest
Disposable income, 2022: $49,256, 11.8% lower than national avg – 10th lowest
Cost of living, 2021: 5.7% lower than national avg – 24th lowest
Population, 2022: 10,034,118

27. New York

“True cost” of a Big Mac considering income and cost of living: $5.12
Actual price of a Big Mac, Aug 2023: $5.29, 2.3% higher than national avg price – 21st highest
Disposable income, 2022: $63,118, 13.0% higher than national avg – 7th highest
Cost of living, 2021: 9.5% higher than national avg – 3rd highest
Population, 2022: 19,677,151

26. Alabama

“True cost” of a Big Mac considering income and cost of living: $5.13
Actual price of a Big Mac, Aug 2023: $4.70, 9.1% lower than national avg price – 18th lowest
Disposable income, 2022: $45,079, 19.3% lower than national avg – 3rd lowest
Cost of living, 2021: 11.9% lower than national avg – 2nd lowest
Population, 2022: 5,074,296

25. Maryland

“True cost” of a Big Mac considering income and cost of living: $5.19
Actual price of a Big Mac, Aug 2023: $5.19, 0.4% higher than national avg price – 22nd highest
Disposable income, 2022: $59,307, 6.2% higher than national avg – 12th highest
Cost of living, 2021: 6.2% higher than national avg – 7th highest
Population, 2022: 6,164,660

24. Colorado

“True cost” of a Big Mac considering income and cost of living: $5.20
Actual price of a Big Mac, Aug 2023: $5.69, 10.1% higher than national avg price – 11th highest
Disposable income, 2022: $62,984, 12.8% higher than national avg – 8th highest
Cost of living, 2021: 3.0% higher than national avg – 10th highest
Population, 2022: 5,839,926

23. Montana

“True cost” of a Big Mac considering income and cost of living: $5.31
Actual price of a Big Mac, Aug 2023: $5.19, 0.4% higher than national avg price – 22nd highest
Disposable income, 2022: $49,936, 10.6% lower than national avg – 17th lowest
Cost of living, 2021: 8.4% lower than national avg – 15th lowest
Population, 2022: 1,122,867

22. New Jersey

“True cost” of a Big Mac considering income and cost of living: $5.36
Actual price of a Big Mac, Aug 2023: $5.79, 12.0% higher than national avg price – 10th highest
Disposable income, 2022: $65,844, 17.9% higher than national avg – 3rd highest
Cost of living, 2021: 9.1% higher than national avg – 4th highest
Population, 2022: 9,261,699

21. Oregon

“True cost” of a Big Mac considering income and cost of living: $5.39
Actual price of a Big Mac, Aug 2023: $5.00, 3.3% lower than national avg price – 25th lowest
Disposable income, 2022: $53,361, 4.4% lower than national avg – 23rd highest
Cost of living, 2021: 3.0% higher than national avg – 9th highest
Population, 2022: 4,240,137

20. Texas

“True cost” of a Big Mac considering income and cost of living: $5.41
Actual price of a Big Mac, Aug 2023: $5.36, 3.7% higher than national avg price – 19th highest
Disposable income, 2022: $54,488, 2.4% lower than national avg – 22nd highest
Cost of living, 2021: 1.5% lower than national avg – 18th highest
Population, 2022: 30,029,572

19. New Mexico

Albuquerque, New Mexico | Albuquerque, New Mexico, USA Cityscape

“True cost” of a Big Mac considering income and cost of living: $5.41
Actual price of a Big Mac, Aug 2023: $4.99, 3.5% lower than national avg price – 24th lowest
Disposable income, 2022: $46,270, 17.1% lower than national avg – 6th lowest
Cost of living, 2021: 10.1% lower than national avg – 6th lowest
Population, 2022: 2,113,344

18. South Carolina

“True cost” of a Big Mac considering income and cost of living: $5.48
Actual price of a Big Mac, Aug 2023: $4.89, 5.4% lower than national avg price – 22nd lowest
Disposable income, 2022: $46,720, 16.3% lower than national avg – 7th lowest
Cost of living, 2021: 6.3% lower than national avg – 22nd lowest
Population, 2022: 5,282,634

17. West Virginia

“True cost” of a Big Mac considering income and cost of living: $5.52
Actual price of a Big Mac, Aug 2023: $4.79, 7.4% lower than national avg price – 20th lowest
Disposable income, 2022: $43,972, 21.2% lower than national avg – 2nd lowest
Cost of living, 2021: 9.2% lower than national avg – 9th lowest
Population, 2022: 1,775,156

16. New Hampshire

“True cost” of a Big Mac considering income and cost of living: $5.55
Actual price of a Big Mac, Aug 2023: $6.29, 21.7% higher than national avg price – 3rd highest
Disposable income, 2022: $64,826, 16.1% higher than national avg – 5th highest
Cost of living, 2021: 2.5% higher than national avg – 12th highest
Population, 2022: 1,395,231

15. Georgia

“True cost” of a Big Mac considering income and cost of living: $5.56
Actual price of a Big Mac, Aug 2023: $5.15, 0.4% lower than national avg price – 24th highest
Disposable income, 2022: $49,538, 11.3% lower than national avg – 14th lowest
Cost of living, 2021: 4.2% lower than national avg – 24th highest
Population, 2022: 10,912,876

14. Delaware

“True cost” of a Big Mac considering income and cost of living: $5.69
Actual price of a Big Mac, Aug 2023: $5.49, 6.2% higher than national avg price – 14th highest
Disposable income, 2022: $52,591, 5.8% lower than national avg – 25th lowest
Cost of living, 2021: 2.3% lower than national avg – 20th highest
Population, 2022: 1,018,396

13. Idaho

“True cost” of a Big Mac considering income and cost of living: $5.77
Actual price of a Big Mac, Aug 2023: $5.39, 4.3% higher than national avg price – 17th highest
Disposable income, 2022: $47,859, 14.3% lower than national avg – 8th lowest
Cost of living, 2021: 8.2% lower than national avg – 17th lowest
Population, 2022: 1,939,033

12. California

“True cost” of a Big Mac considering income and cost of living: $5.82
Actual price of a Big Mac, Aug 2023: $5.89, 13.9% higher than national avg price – 9th highest
Disposable income, 2022: $63,219, 13.2% higher than national avg – 6th highest
Cost of living, 2021: 11.8% higher than national avg – 2nd highest
Population, 2022: 39,029,342

11. Illinois

“True cost” of a Big Mac considering income and cost of living: $5.90
Actual price of a Big Mac, Aug 2023: $6.09, 17.8% higher than national avg price – 6th highest
Disposable income, 2022: $58,437, 4.7% higher than national avg – 14th highest
Cost of living, 2021: 1.4% higher than national avg – 16th highest
Population, 2022: 12,582,032

10. Missouri

“True cost” of a Big Mac considering income and cost of living: $5.92
Actual price of a Big Mac, Aug 2023: $5.69, 10.1% higher than national avg price – 11th highest
Disposable income, 2022: $49,367, 11.6% lower than national avg – 11th lowest
Cost of living, 2021: 8.0% lower than national avg – 18th lowest
Population, 2022: 6,177,957

9. Arkansas

“True cost” of a Big Mac considering income and cost of living: $5.93
Actual price of a Big Mac, Aug 2023: $5.49, 6.2% higher than national avg price – 14th highest
Disposable income, 2022: $46,218, 17.2% lower than national avg – 5th lowest
Cost of living, 2021: 10.6% lower than national avg – 4th lowest
Population, 2022: 3,045,637

8. Rhode Island

“True cost” of a Big Mac considering income and cost of living: $6.06
Actual price of a Big Mac, Aug 2023: $5.99, 15.9% higher than national avg price – 8th highest
Disposable income, 2022: $56,289, 0.8% higher than national avg – 17th highest
Cost of living, 2021: 2.1% higher than national avg – 14th highest
Population, 2022: 1,093,734

7. Massachusetts

“True cost” of a Big Mac considering income and cost of living: $6.09
Actual price of a Big Mac, Aug 2023: $7.09, 37.1% higher than national avg price – the highest
Disposable income, 2022: $69,316, 24.2% higher than national avg – the highest
Cost of living, 2021: 6.6% higher than national avg – 6th highest
Population, 2022: 6,981,974

6. Arizona

“True cost” of a Big Mac considering income and cost of living: $6.10
Actual price of a Big Mac, Aug 2023: $5.59, 8.1% higher than national avg price – 13th highest
Disposable income, 2022: $49,493, 11.4% lower than national avg – 13th lowest
Cost of living, 2021: 3.3% lower than national avg – 22nd highest
Population, 2022: 7,359,197

5. Alaska

“True cost” of a Big Mac considering income and cost of living: $6.11
Actual price of a Big Mac, Aug 2023: $6.50, 25.7% higher than national avg price – 2nd highest
Disposable income, 2022: $62,045, 11.1% higher than national avg – 10th highest
Cost of living, 2021: 4.4% higher than national avg – 8th highest
Population, 2022: 733,583

4. Mississippi

“True cost” of a Big Mac considering income and cost of living: $6.23
Actual price of a Big Mac, Aug 2023: $5.40, 4.4% higher than national avg price – 16th highest
Disposable income, 2022: $41,887, 25.0% lower than national avg – the lowest
Cost of living, 2021: 13.4% lower than national avg – the lowest
Population, 2022: 2,940,057

3. Vermont

“True cost” of a Big Mac considering income and cost of living: $6.33
Actual price of a Big Mac, Aug 2023: $6.29, 21.7% higher than national avg price – 3rd highest
Disposable income, 2022: $54,714, 2.0% lower than national avg – 20th highest
Cost of living, 2021: 1.3% lower than national avg – 17th highest
Population, 2022: 647,064

2. Hawaii

“True cost” of a Big Mac considering income and cost of living: $6.39
Actual price of a Big Mac, Aug 2023: $5.31, 2.7% higher than national avg price – 20th highest
Disposable income, 2022: $52,515, 5.9% lower than national avg – 24th lowest
Cost of living, 2021: 13.2% higher than national avg – the highest
Population, 2022: 1,440,196

1. Maine

“True cost” of a Big Mac considering income and cost of living: $6.54
Actual price of a Big Mac, Aug 2023: $6.29, 21.7% higher than national avg price – 3rd highest
Disposable income, 2022: $52,236, 6.4% lower than national avg – 21st lowest
Cost of living, 2021: 2.8% lower than national avg – 21st highest
Population, 2022: 1,385,340

ALERT: Take This Retirement Quiz Now (Sponsored)

Take the quiz below to get matched with a financial advisor today.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Take the retirement quiz right here.

The post The Price of This Famous Sandwich Is Getting Absurd appeared first on 24/7 Wall St..