Alabama: Where $100 is Worth More Than You Might Think

BIRMINGHAM, AL - Some say $100 doesn't buy you what it used to. And those people are, for the most part, correct. However, that sentiment might vary depending on where in the U.S. you live. A study by the Tax Foundation mapped out what $100 is worth in each state. And Alabama was one of the states where $100 is worth the most.

Aside from Mississippi, in no other state is $100 worth more, as the study showed that amount in Alabama is actually worth $115.21. In Mississippi, $100 is worth $116.01.

Incidentally, $100 is worth the least in Hawaii ($84.18), the District of Columbia ($85.47), New York ($86.73), New Jersey ($88.18), and California ($88.18).

According to the study, real purchasing power is 36 percent greater in Mississippi than it is in the District of Columbia. In essence, someone with $50,000 in after-tax income in Mississippi, would need after-tax earnings of $68,000 in the District of Columbia just to afford the same overall standard of living.

Typically, states with higher nominal incomes also have higher price levels. This is because in places with higher incomes, the prices of finite resources like land get bid up.