It all depends on the state where you live
of ConsumerAffairsAugust 15, 2025
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The typical American household spends $2,058 a month on essential bills, about one-third of the median income.
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California, Hawaii, New Jersey, and Massachusetts are the most expensive states for household bills.
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West Virginia, Mississippi, Arkansas, and Oklahoma are the most affordable places to cover monthly essentials.
If you feel like your bills are eating up a big chunk of your paycheck, youre not alone. A new 2025 State-by-State Bill Pay Market Report from doxoINSIGHTS finds that the average American household spends $2,058 per month on essential bills, making up about 31% of household income.
That number covers the basics: mortgage or rent, utilities, car payments and insurance, phone service, internet, health insurance, and even things like waste removal or alarm systems.
The most expensive states
Not surprisingly, states with high housing and living costs dominate the top of the list. California households pay a median of $2,854 a month, nearly 40% more than the national average. Hawaii, New Jersey, and Massachusetts also rank among the priciest, with bills topping $2,600 a month.
Other expensive states include:
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Maryland: $2,505
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Washington: $2,453
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New York: $2,412
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Colorado: $2,391
For families living in these states, bills can take up nearly a third of their income, leaving less room for savings or extras.
Where bills are lowest
On the flip side, the most affordable state is West Virginia, where residents spend just $1,149 per month, less than half of what Californians pay. Other states with lower bills include Mississippi, Arkansas, and Oklahoma, all with typical monthly costs around $1,500.
That means a family in West Virginia is paying 44% less than the national median for the same essential services.
Knowing how your bills stack up against the national average can help you plan your budget and even guide big decisions, like moving to another state for affordability.
For example, someone relocating from New Jersey to Kentucky could save more than $1,000 a month on bills, simply due to differences in housing and utilities. Over a year, thats over $12,000 in savings.
The data also highlight how much housing and insurance costs drive financial stress in certain regions. Even if incomes are higher in expensive states, the bigger bill burden means families often have less flexibility in their budgets.
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