US States With Highest and Lowest Monthly Household Bills

Residents in California, Hawaii, and New Jersey can pay "up to 39% more than the national median" on monthly household bills.

Brian O'Connell

Published: 5/28/2025, 6:33:53 PM EDT

US States With Highest and Lowest Monthly Household Bills — Stressful Accounting at Home: Couple Using Laptop Computer, Sitting on Sofa in Apartment. Young Family Filling Tax Forms, Mortgage Documents, Bills, Checks, Balances, Invoices are in Order. (Shutterstock)

The cost of living is on the rise, and it’s putting Americans, who are caught between stagnant incomes and rising prices, in a financial squeeze.

According to the Doxo 2025 U.S. Household Bill Pay Report, the average consumer pays $24,695 in household bills, or $2,058 monthly. That average includes key personal expenditures such as mortgage, rent, medical costs, utilities, phone, insurance, and groceries, among other expenses.

But many Americans have higher household bills than others, depending on location and age. How much of a financial burden those bills have depends on the income bracket a person falls under. A new Doxo study—the 2025 Cost of Bills Index Report—said the disparity in bill payment on a state-by-state basis is significant.

The study reported that the cost of household bills “varies dramatically” across the country, with residents in the highest bill-paying states like California, Hawaii, and New Jersey paying up to 39% more than the national median for household bills, while those in the most affordable states like West Virginia, Mississippi, and Oklahoma pay up to 44% less to cover bill payments.

Add Massachusetts and Maryland to the highest cost-of-living states and New Mexico and Arkansas to the lowest bill-paying states, and that completes Doxo’s top five U.S. states with the highest versus lowest average household bills.

The study found that basic recurring expenses, such as utilities and car insurance, each account for around 5 percent of monthly bills, but can stack up fast given the rising cost for both household bill categories. For example, Hawaii has the highest electricity cost at $197 on average per month. New Jersey has the third-highest monthly car insurance cost at $150 on average. California ranked 21st and 22nd in those categories, respectively.

Doxo, a bill payment platform, sources data for the report from its own proprietary dataset, looking at bill payment statistics for the 13 most common household bill categories, issuing a standard comparison index for household cost of living.

“What stood out most is how these everyday expenses are quietly draining middle-class incomes, even in households that appear financially stable on paper,” said Elizabeth Sinclair, CEO at The Way to Wealth, by email to NTD. “It’s a powerful reminder that the true cost of living varies significantly by ZIP code.”

Sinclair also cited the role of average annual salaries in coping with rising household bill costs. For example, in states where the average household is spending $2,800 or more on monthly bills, families must bring in at least $90,000 to $100,000 per year after taxes to “comfortably” cover living costs. “For some people, it’s the trade-off for access to better jobs, education, or lifestyle amenities,” Sinclair said.

However, for other U.S. households, especially those not earning at the top of the pay scale, it becomes a financial burden rather than a choice. “Thus, the gap between rising bills and stagnant wages is forcing households to stretch more than ever,” Sinclair wrote.

Get Smart About Paying Down Bills

No matter your state, reducing household bill costs is doable.

“Start thinking of your household like a business that runs on smart systems,” said Kevin Connor, CEO of Modern SBC, a strategic branding company that advises clients on handling revenue costs, by email to NTD. “Look for small ways to plug leaks: bundle your purchases, schedule when to review service contracts, and make the most of what you already have.”

For example, household heads can set reminders to renegotiate phone or internet plans before they auto-renew. “You’ll often get a better deal just by asking,” Connor noted.

Consumers can also deploy a shared family calendar to combine errands and cut down on gas. Even motion-sensor lights or automated bill payments (some come with small discounts) can quietly boost your savings over time. “Don’t just budget—systemize your savings,” Connor said.

Consumers can also shop around for promotions on fixed bills like internet, phone, and insurance.

“Call providers once a year, ask what promotions are available, and don’t be afraid to switch,” said David Kindness, a San Diego-based certified public accountant and personal finance analyst at BestMoney, via email to NTD.

Curb energy costs using smart thermostats and time-based usage, such as running the dishwasher at night. “Doing so can make a real dent,” Kindness said. “I’ve seen families shave hundreds off annual utility bills just by changing usage patterns. It’s about getting strategic and treating bills like something you can influence and not just endure.”

The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.