If you think a US holiday is out of reach on a tight budget, think again. There’s a sneaky truth: some states offer outrageously good value while others will make your credit card sweat just for a cup of coffee. People always ask, "Where can I go for a proper vacation without paying the price of a used car?" Well, the answer might surprise you. This isn’t just about the cheapest gas or the lowest Airbnb rate. We’re talking food, fun, and all the little stuff that turns a getaway from a stingy ordeal into a real escape.
Cheapest state to holiday—that’s the magic phrase. We’ll dig deep into where your dollars go furthest, the quirkiest free things to do, and a few mistakes you absolutely want to dodge if you don’t want your stag-night or family trip to end with ramen noodles for dinner... every night.
How the Cost of a Holiday Varies Across the US
Let’s clear the air—holiday costs are about way more than just the flight price or a hotel deal. The minute you land in a pricey state, everything else snowballs. Coffee’s pricier. Gas isn’t pocket change. Even grabbing a cheap bite comes with sticker shock. Why is this? States set their own sales taxes, and some—like New York and California—stack extra state and local taxes that travelers rarely consider beforehand.
The magic comes in places you might not expect—take Oklahoma or Arkansas for instance. These places have a lower cost of living, which means restaurant meals, fun activities, and even tourist staples like museums cost less. Dig a bit deeper, and states like Mississippi, West Virginia, and Kansas start to pop up every time someone crunches the numbers on affordability.
Here’s a wild fact: In 2025, tourism data showed the average traveler in Mississippi spent about 30% less per day compared to the US average. Most folks expect Florida or Texas to top the list because they’re popular, but their big-city prices and tourist taxes add up fast.
But costs aren’t just about food and hotels. State parks fees can sneak up on you, so can parking in historic downtowns and even tolls. But get this—some of the cheapest states for a vacation offer vast networks of free attractions. Oklahoma, for example, has over 50 state parks, many of which don’t charge entry. West Virginia’s hiking trails sprawl for hundreds of miles, not just offering breathtaking views, but all for free.
If you want to save, you have to look beyond the "hot spots". Branson, Missouri, for instance, is packed with budget-friendly family attractions. Meanwhile, you can catch free outdoor concerts, food festivals, and summer fairs in places like Idaho and Nebraska—sometimes with only a small parking fee or even nothing at all.
Don't get me wrong, popular tourist states have their charm but be prepared to take a hit. Hawaii delivers paradise, but budget travelers joke you’ll be living on Spam sandwiches in order to afford a rental car. Alaska wows nature lovers, but flights and the cost of basic services climb fast the further north you go.
One eye-opener: in a 2024 study by a leading travel site, the "daily spend" for travelers in Mississippi and Arkansas was actually lower than in most Western European capitals. So if you can resist the urge to Instagram from Times Square, your wallet will thank you.
The Cheapest State to Holiday In: Why Mississippi Tops the List
Let’s cut to the chase: if you just want the absolute cheapest state to holiday in, Mississippi wins. And it’s not just by a nose—this state typically undercuts the competition on most things that matter to budget travelers. Think low-cost hotels (where $60 a night still gets you something clean), the cheapest gas prices, no-nonsense food joints featuring catfish dinners under ten bucks, and a calendar packed with quirky free festivals.
What does a holiday here actually look like? First, Mississippi doesn’t do "resort taxes" like Florida. The main cities—Jackson, Gulfport, Tupelo—stay affordable year-round, not only in the off-season. Backpackers, students, big families, retired couples... they’re all here because they can actually stretch a $500 budget across an entire week without running dry.
Instead of scrambling for last-minute deals, you could just show up mid-week and find plenty of motels with rooms ready. DIY travelers pile in for road trips along the Natchez Trace Parkway. This scenic, tree-lined route offers hiking, birdwatching, and historic stops—none of which will ding your wallet. Small towns like Oxford and Clarksdale are known for deep-fried soul food and live blues. Most of the bars don’t even charge cover. Drinks? Still cheap compared to bigger cities.
Don't skip coastal Mississippi, either. The Gulf Coast has miles of sandy beaches and charming old towns like Bay St. Louis. Beaches here are public and parking’s free—unlike California, where you’ll pay by the hour. Even the seafood shacks keep menus affordable, and you’re rarely forced to pay more for simple pleasures like bike rentals or kayak trips.
Craving museums or history? Loads of Civil Rights Trail sites have free entry, and the state’s historic homes open doors for the cost of a lunch in L.A. If you care about music, Mississippi’s Blues Trail is legendary, and you can hit up local juke joints, sometimes for the price of a soda.
- Gas remains the cheapest in the nation as of July 2025, averaging under $3 a gallon, and road tolls are almost non-existent.
- Hotel taxes haven’t jumped like in touristy metros. Even during summer or festival weekends, there’s usually no need to break the bank for accommodation.
- Southern hospitality isn’t just talk, either. Locals go out of their way to recommend hidden gems and sometimes even throw in a free drink or dessert.
Tips for a Budget-Friendly US Vacation: Making Your Money Go Further
Finding the cheapest state to holiday in is half the battle. Getting the most from your adventure? That’s where things get interesting. First, pick your travel window wisely. Even in the cheapest state, picking late spring or early fall can cut costs—hotel rates drop, parks empty out, and restaurants bring out weekday specials just to fill seats.
Transportation matters, too. Flying direct to small airports can be pricey, but driving in—or taking a bus or train—keeps you way under budget. If you’re exploring places like Mississippi, Arkansas, or Kentucky (also a steal for budget breaks), consider flying into a hub city nearby and renting a car for the backroads. Rental prices are often lower away from big airports, and you’ll save loads on parking.
Take advantage of state discounts. Most state tourism boards offer free guides plus coupon booklets for local attractions. Loyalty programs for chains like Motel 6 and Choice Hotels can get you even more savings on multiple night stays. And a few states actually reward you for visiting off-the-beaten-path towns—Missouri and West Virginia, for example, run fun passport challenges (with prizes) for checking out local restaurants and museums.
Food is the secret area most travelers overspend. Skip chains and instead hunt for diners, food trucks, church lunches, or town square BBQ festivals. In Mississippi and similar states, farmers’ markets will not only fill you up on homemade treats but sometimes offer live music for free.
If you’re road tripping, keep an eye out for free events. Local radio and community Facebook pages are gold mines. You’ll often find pop-up art shows, classic car nights, or free-to-watch rodeos on summer weekends. Budget travelers swear by towns that host big events with "suggested donations" instead of fixed entry fees.
Don’t ignore natural attractions. Hiking, fishing, and swimming spots beat pricey theme parks, and the Southern states pile on the outdoor options without charging a penny. National parks may charge entry, but state parks are generally free or charge just a couple of bucks per vehicle.
If you want to plan big, try combining cheap states for a "multi-stop" holiday. The drive between Mississippi, Alabama, and Louisiana is short—yet the food, music, and history change completely, and you barely spend anything between towns.
Finally, get creative with accommodation. Many smaller-town hotels offer weekly or monthly rates, even if you’re just staying six nights. If you’re the outdoorsy type, camping in a state park can save you hundreds over hotels. Some parks in Arkansas or Mississippi even loan out camping gear for free.