Planning to move to USA for studies or work? Wondering how much you’ll need every month? From rent in Jersey City to groceries at Patel Brothers, the cost of living in USA includes many factors. Students typically spend $1,200–$2,500 (₹1L–₹2.1L) per month, while professionals in cities like New York, San Francisco, and Boston budget around $3,000+ (₹2.5L+) per month.
Housing costs the most. A shared apartment in Edison, Jersey City, or Chicago costs $600–$1,500 (₹50K–₹1.2L).
Groceries from Walmart, Costco, or Patel Brothers cost $250–$600 (₹21K–₹50K) per month.
Transport costs depend on the city. A New York MetroCard is $132 (₹11K), while a car in Dallas or Houston adds $300–$500 (₹25K–₹42K) per month for gas and insurance.
Is USA more expensive than Canada or Australia? Which cities are budget-friendly? This blog covers rent, food, transport, and ways to cut costs so you can focus on studies or work without stressing over money.
Housing is the biggest expense for both students and professionals. Renting is more flexible and requires less upfront investment, while buying is a long-term financial commitment that builds equity.
Average Rent & Mortgage Cost of Living in USA
Housing Type
Rent (Monthly) (USD/INR)
Buying Cost (Median Price) (USD/INR)
Studio Apartment
$1,000–$2,000 (₹83K–₹1.6L)
$250,000–$400,000 (₹2.1Cr–₹3.3Cr)
1-Bedroom Apartment
$1,500–$3,000 (₹1.2L–₹2.5L)
$300,000–$500,000 (₹2.5Cr–₹4.1Cr)
2-Bedroom Apartment
$2,000–$4,500 (₹1.6L–₹3.7L)
$400,000–$700,000 (₹3.3Cr–₹5.8Cr)
Single-Family Home
$2,500–$6,000 (₹2L–₹5L)
$500,000–$1M+ (₹4.1Cr–₹8.3Cr)
Differences Between Renting & Buying
Factor
Renting
Buying
Upfront Cost
Security deposit (1–3 months' rent)
Down payment (10–20%) + closing costs
Monthly Payment
Rent + utilities
Mortgage + taxes + maintenance
Flexibility
Easy to move
Long-term commitment
Maintenance
Landlord covers repairs
Owner pays for repairs
Investment Value
No equity
Builds home equity over time
When Does Buying a Home Make Sense?
Planning to stay in the same city for 5+ years.
Have a stable job and good credit score for mortgage approval.
Can afford down payment + closing costs (typically $50K+ (₹41L+) for a median-priced home).
Best Cities for Affordable Housing
Some cities offer lower home prices and affordable rent compared to expensive metro areas.
City
Average Rent (1-BR) (USD/INR)
Median Home Price (USD/INR)
Austin, TX
$1,500–$2,500 (₹1.2L–₹2L)
$400,000 (₹3.3Cr)
Denver, CO
$1,800–$3,000 (₹1.5L–₹2.5L)
$500,000 (₹4.1Cr)
Charlotte, NC
$1,300–$2,200 (₹1.1L–₹1.8L)
$350,000 (₹2.9Cr)
Phoenix, AZ
$1,400–$2,400 (₹1.2L–₹2L)
$400,000 (₹3.3Cr)
How to Save on Housing Costs
Consider shared rentals instead of renting alone.
Look for housing outside major downtown areas to save on rent.
Check for employer relocation benefits if moving for work.
Use first-time homebuyer programs if considering buying.
Food & Grocery Cost of Living in USA
How Much Does Food Cost in USA?
Grocery prices in USA vary based on location and store type. Big cities have higher food costs, while smaller towns offer cheaper alternatives. Eating out is expensive, but cooking at home reduces food expenses by 30–50%.
Average Monthly Food Expenses
Expense Type
Average Monthly Cost (USD/INR)
Groceries (Home Cooking)
$300–$600 (₹25K–₹50K)
Budget Meal (Fast Food)
$8–$12 per meal (₹650–₹1K)
Mid-Range Restaurant
$15–$35 per meal (₹1.2K–₹3K)
Fine Dining Experience
$50–$150 per meal (₹4K–₹12K)
Grocery Shopping in USA
Supermarkets like Walmart, Kroger, and Whole Foods cater to all budgets. Farmers' markets and discount stores like Aldi offer fresh produce at lower prices. Imported and organic goods cost significantly more.
Average Grocery Prices
Grocery Item
Average Price (USD/INR)
Milk (1 gallon)
$3.50–$5 (₹290–₹410)
Eggs (Dozen)
$3–$6 (₹250–₹500)
Chicken (1 kg)
$6–$12 (₹500–₹1K)
Rice (5 lbs)
$4–$8 (₹330–₹660)
Fresh Vegetables
$1.50–$4 per lb (₹125–₹330)
Potatoes (1 kg)
$1–$2 (₹80–₹165)
Cooking Oil (1 liter)
$4–$7 (₹330–₹580)
Ways to Save on Food Costs
Buy in bulk from Costco or Sam’s Club for essentials like rice and canned goods.
Use store loyalty programs at Walmart and Kroger for extra discounts.
Cook at home to avoid spending more on dining out.
Opt for store-brand items instead of premium brands to save 20–30%.
Shop at farmers' markets for fresh produce at lower prices.
Transportation Costs: Public vs. Private Transport in USA
What’s More Affordable?
Public transport is cheaper in cities with good metro and bus networks. Car ownership makes sense in suburban or rural areas where public transport options are limited.
Public transport users spend $80–$150 per month, while car owners pay $700–$1,200 monthly, including fuel, insurance, and maintenance.
Cost Comparison: Public vs. Private Transport
Transport Option
Monthly Cost (USD/INR)
Coverage & Notes
Public Transport (Metro/Bus)
$80–$150 (₹6.5K–₹12K)
Unlimited local travel in most cities
Taxi (Short Ride 3–5 miles)
$10–$25 (₹800–₹2K)
Ride-sharing apps may be cheaper
Car Rental (Long-Term Lease)
$600–$1,200 (₹50K–₹1L)
Based on location and car model
Fuel (Per Gallon)
$3–$5 (₹250–₹410)
Prices vary by state
Car Insurance (Yearly)
$1,200–$2,500 (₹1L–₹2L)
Required in all states
Public Transport vs. Private Car: Pros and Cons
Factor
Public Transport
Private Car
Cost
$80–$150/month (₹6.5K–₹12K)
$700+/month (₹58K+)
Convenience
Fixed routes & schedules
Travel anytime
Time Efficiency
Faster in traffic-heavy cities
Slower due to congestion
Long-Distance Travel
Amtrak & Greyhound available
Gas & tolls add up
Parking Issues
No need for parking
Expensive in cities
When Should You Own a Car?
Living in a suburban or rural area with limited public transport.
Frequent work-related travel to different locations.
Carpooling or ride-sharing is not a feasible option.
Ways to Cut Transport Costs
Use monthly metro/bus passes for unlimited rides at a fixed price.
Carpool or use ride-sharing apps like Uber and Lyft.
Take advantage of fuel rewards programs at gas stations.
Consider hybrid or electric cars to save on fuel.
Check for employer travel reimbursements—some companies cover commuting expenses.
Cost of Living in USA: Healthcare & Insurance
How Expensive is Healthcare in USA?
Healthcare in USA is one of the most expensive in the world, and health insurance is mandatory for most residents, including expats. Without insurance, a simple doctor’s visit can cost over $100 (₹8K), while hospitalization can run into thousands of dollars.
The Affordable Care Act (ACA) requires residents to have insurance, but costs vary based on coverage, location, and employer-provided benefits. Expats can opt for private health insurance or employer-sponsored plans.
Health Insurance Costs in USA
Healthcare Type
Cost (USD/INR)
Coverage
Employer-Sponsored Health Insurance
$400–$800/month (₹33K–₹66K)
Covers hospital visits, prescriptions, and preventive care
Private Health Insurance
$500–$1,500/month (₹41K–₹1.2L)
Broader network and faster specialist access
Public Health Insurance (Medicaid/Medicare)
Free–Low Cost (Depends on eligibility)
For low-income individuals and seniors
General Doctor Visit
$100–$250 (₹8K–₹21K)
Consultation fee
Specialist Visit
$200–$500 (₹16K–₹41K)
Dermatology, ENT, cardiology, etc.
Dental Checkup & Cleaning
$75–$300 (₹6K–₹25K)
Not covered by basic health insurance
Hospital Stay (per night)
$2,000–$5,000 (₹1.6L–₹4.1L)
Includes bed and treatment
Emergency Room (ER) Visit
$500–$3,000 (₹41K–₹2.5L)
Immediate medical care
Who Needs Private Health Insurance?
Expats and freelancers without employer-sponsored insurance.
Individuals needing faster specialist access without long waiting times.
Those requiring dental, vision, or alternative medicine coverage, which is often not included in basic plans.
Employer-Sponsored Plans: Many companies offer insurance where employees contribute $100–$400 (₹8K–₹33K) per month toward premiums.
Marketplace (ACA) Plans: Expats can buy insurance through HealthCare.gov, with premiums based on income.
Private Insurance: Available through providers like Blue Cross Blue Shield, Cigna, and Aetna for more comprehensive coverage.
Medicaid & Medicare: Government programs for low-income individuals and seniors aged 65+.
Ways to Save on Healthcare Costs
Choose a high-deductible health plan (HDHP) if you are healthy and don’t need frequent care.
Use telehealth services for virtual doctor consultations at lower costs.
Visit urgent care clinics instead of emergency rooms for non-life-threatening issues.
Compare insurance providers and choose plans that suit your needs and budget.
Taxes & Cost of Living Adjustments for Professionals in USA
USA follows a progressive tax system, meaning higher earners pay a higher percentage of their income in taxes. Federal, state, and local taxes apply, affecting take-home salary.
Tax Breakdown for Professionals
Tax Type
Rate (%)
Who Pays?
Federal Income Tax
10%–37%
All employees & freelancers
State Income Tax
0%–13%
Varies by state (no tax in Texas, Florida, etc.)
Social Security Tax
6.2%
Employees & employers
Medicare Tax
1.45%
Employees & employers
Self-Employment Tax
15.3%
Freelancers & business owners
How to Reduce Tax Burden
Contribute to a 401(k) retirement plan to lower taxable income.
Use Health Savings Accounts (HSA) for tax-free medical expenses.
Move to tax-friendly states like Texas, Florida, and Nevada (no state income tax).
Freelancers can deduct business expenses to reduce taxable income.
Part-Time Work & Job Opportunities for Students in USA
International students on an F-1 visa can work part-time, but there are restrictions. On-campus jobs are the easiest to get, while off-campus work requires approval under CPT (Curricular Practical Training) or OPT (Optional Practical Training). Unauthorized work can lead to visa cancellation, so students need to follow rules carefully.
Best Part-Time Jobs for International Students
Job Type
Hourly Pay (USD/INR)
Where to Find?
Library Assistant
$12–$15 (₹1K–₹1.2K)
University job boards
Cafeteria & Dining Staff
$10–$14 (₹800–₹1.1K)
Campus food courts
Research Assistant (RA)
$15–$25 (₹1.2K–₹2K)
Professors, Labs
Teaching Assistant (TA)
$20–$30 (₹1.6K–₹2.5K)
University departments
Retail Associate
$12–$18 (₹1K–₹1.5K)
Walmart, Target, Macy’s
Food Delivery (DoorDash, UberEats)
$15–$22 (₹1.2K–₹1.8K)
Must have work authorization
Call Center Jobs
$14–$20 (₹1.1K–₹1.6K)
Local businesses, startups
Tutoring (Math, English, Coding)
$20–$40 (₹1.6K–₹3.3K)
Online or university tutoring centers
How Much Can Students Earn?
A student working 20 hours per week at $15/hour earns about $1,200 (₹1L) per month. Working full-time during summer or winter breaks doubles earnings, making it possible to save for tuition or living expenses.
Where to Find Part-Time Jobs?
University career centers—they offer priority to students for on-campus jobs.
LinkedIn & Indeed—great for remote tutoring or customer service roles.
Networking with professors—Research Assistant jobs are rarely advertised, so talking to faculty helps.
Cold calling local businesses—many small stores and restaurants hire students without posting jobs online.
What Jobs Should Students Avoid?
Under-the-table jobs (cash payment without work authorization)—illegal and risky.
Unpaid internships—only worth it if they lead to CPT/OPT approval.
MLM (Multi-Level Marketing) jobs—pyramid schemes disguised as work-from-home opportunities.
Hidden Cost of Living in USA
Living in USA comes with hidden costs that many students and professionals overlook. Rent and groceries may seem like the biggest expenses, but taxes, healthcare, and unexpected fees add up fast.
Unexpected Cost of Living in USA
Expense Type
Average Cost (USD/INR)
Notes
Sales Tax
5%–10% extra on purchases
No fixed rate, varies by state
Income Tax (State & Federal)
10%–37% of salary
Higher in states like California & New York
Health Insurance
$400–$800 (₹33K–₹66K)
Mandatory unless employer-covered
Internet & Mobile
$60–$150 (₹5K–₹12K)
Depends on plan and provider
Electricity & Water Bills
$100–$250 (₹8K–₹20K)
Higher in colder and hotter states
Public Transport Pass
$80–$150 (₹6.5K–₹12K)
City-specific pricing
Car Parking Fees
$50–$500 (₹4K–₹41K)
Expensive in metro areas
Tipping Culture
15%–25% on dining bills
Standard in restaurants and bars
Why Are Taxes a Big Hidden Cost?
Sales tax is not included in price tags, which increases actual spending. A $1,000 laptop costs $1,080 (₹90K) in a state with 8% tax. States like Texas and Florida don’t have state income tax, helping professionals save thousands per year.
How to Reduce the Cost of Living in USA?
Check sales tax rates before big purchases. Oregon and Delaware have 0% sales tax.
Use student or employee discounts for mobile plans and software.
Live in tax-friendly states like Texas, Florida, and Nevada to save on state income tax.
Carpool or use public transport to avoid high fuel and parking costs.
Most Affordable US Cities for Students & Professionals
Not all US cities burn a hole in your pocket. Some places offer affordable rent, low taxes, and good job opportunities, making them perfect for students and working professionals.
(*Cost of Living Index: Higher number means more expensive.)
What Makes These Cities Affordable?
Lower rent and cheaper groceries than in cities like New York or San Francisco.
Public transport is reliable, reducing the need for a car.
Lower state income taxes, meaning professionals keep more of their salary.
Best Ways to Save Money in Any City
Live near work or campus to save on commuting costs.
Rent in suburban areas instead of downtown to cut rent by 20–30%.
Use free healthcare clinics for basic checkups and prescriptions.
Buy second-hand furniture instead of spending on expensive new items.
upGrad Abroad’s Assistance for Studying & Working in USA
Studying in USA and working these is easier with the right support. upGrad Abroad helps with university applications, career opportunities, and financial planning. Our expert guidance simplifies the process and ensures students make informed decisions.
What upGrad Abroad Offers:
University Applications – Get help choosing universities, preparing documents, and securing scholarships.
Career Support – Find internships, part-time jobs, and full-time opportunities.
Visa & Financial Planning – Get expert advice on visas, tuition fees, and budgeting.
FAQs on Cost of Living in USA for Students & Professionals
How does the cost of living in USA compare to Canada and Australia for Indian students?
USA is more expensive than Canada but similar to Australia in terms of rent and tuition fees. Living costs vary by city—New York, San Francisco, and Boston are expensive, while Texas, Ohio, and Arizona offer lower living expenses.
What is the minimum bank balance required for an F-1 student visa in USA?
Indian students must show proof of at least $20,000–$40,000 (₹16.5L–₹33L) in their bank account, depending on tuition and living expenses for one academic year.
How do Indian students manage high healthcare costs in USA?
Most students purchase university health insurance (costing $1,200–$3,000 (₹1L–₹2.5L) per year). Some choose private insurance plans for better coverage. Emergency care without insurance can be extremely costly.
What are the best student discount programs available in USA for transport, shopping, and dining?
Programs like UNiDAYS, Student Beans, and ISIC offer discounts on Apple, Amazon, Microsoft, and food delivery apps. Students also get public transport discounts in major cities.
How much do Indian students typically spend on winter clothing in USA?
Students spend $200–$500 (₹16K–₹41K) on winter clothing. Budget-friendly stores like Walmart, Target, and TJ Maxx offer cheaper options, while premium brands like Columbia and North Face cost more.
Are there specific financial aid or grants available for Indian students to cover living expenses?
Many universities offer on-campus assistantships, need-based grants, and work-study programs. External scholarships like Fulbright and Tata Scholarships help cover expenses.
What is the cost of renting an apartment near major universities vs. suburban areas?
Rent near universities in cities like New York, Boston, and San Francisco costs $1,500–$3,000 (₹1.2L–₹2.5L) per month. In suburban areas, students pay $800–$1,500 (₹66K–₹1.2L) per month for shared apartments.
How expensive is public transport in major US cities, and do students get discounts?
Public transport costs $75–$130 (₹6K–₹11K) per month in cities like New York, Chicago, and Washington, D.C. Many universities offer free or discounted passes for students.
What hidden costs should Indian students be aware of when renting an apartment in USA?
Security deposits (1–2 months’ rent), utility bills ($100–$200 (₹8K–₹16.5K) per month), renters' insurance, and broker fees are common extra expenses. Some apartments require furniture and WiFi setup.
Are prepaid or postpaid mobile plans better for Indian students in USA?
Prepaid plans like Mint Mobile ($15/month, ₹1,250) and Visible ($30/month, ₹2,500) are cheaper. Postpaid plans from T-Mobile and AT&T ($50–$70/month, ₹4K–₹6K) offer unlimited data and international calling.
What are the best ways for Indian students to save money on groceries and food?
Buying from Walmart, Costco, and Indian stores helps save money. Cooking at home reduces expenses to $200–$400 (₹16.5K–₹33K) per month, while eating out often costs $500+ (₹41K+) per month.
How do state taxes impact the overall cost of living for students and professionals in USA?
Some states like Texas, Florida, and Nevada have no state income tax, while states like California and New York tax up to 13% on income, increasing living costs.
Is it better for students to buy a used car or rely on public transport in USA?
Public transport works well in cities like New York and Chicago, but in Texas, Arizona, and California, students may need a used car ($5,000–$10,000, ₹4.1L–₹8.3L) for convenience.
What is the minimum salary a professional should earn to live comfortably in different US cities?
A comfortable salary in New York or San Francisco is $80,000+ (₹66L+), while in Houston or Atlanta, $50,000+ (₹41L+) is sufficient for a good lifestyle.
Are there specific neighborhoods where Indian students and professionals prefer to live in USA?
Yes, Indian students and professionals prefer Jersey City (NJ), Sunnyvale (CA), Edison (NJ), Schaumburg (IL), and Irving (TX) due to affordability and large Indian communities.
We are a dedicated team of study-abroad experts, ensuring intensive research and comprehensive information in each of our blogs. With every piece written, we aim at simplifying the overseas education process for all. Our diverse experience as journalists, content writers, editors, content strategists, and marketers helps create the most relevant and authentic blogs for our readers.
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