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Doxo study finds Americans spend a median of $2,095 a month on essential bills

By Mark Huffman of ConsumerAffairs

• A new doxo report finds the average U.S. household now spends $2,095 per month on essential bills, about 30% of median household income.

• California has the nations highest household bill burden in raw dollars at $2,892 per month, while West Virginia is the least expensive at $1,116.

• The report highlights wide geographic disparities, with household bills in the most expensive states running nearly 2.5 times higher than in the most affordable states.

As inflation pressures continue to weigh on household finances, a new national report suggests where Americans live can dramatically affect how much they pay for essential monthly bills.

Seattle-based financial technology company doxo on Thursday released its 2026 State-by-State Bill Pay Market Report, which found the median U.S. household spends $2,095 each month on recurring household bills roughly 30% of the nations median household income.

The report examines what doxo calls the nations Bill Pay Economy, estimating Americans collectively spend about $5.03 trillion annually on recurring household obligations such as housing, utilities, insurance, mobile phone service and auto loans.

A widening gap

According to the report, the gap between the nations most and least expensive states has widened significantly. Households in the highest-cost states pay as much as 38% above the national median, while residents in the most affordable states spend up to 47% less.

Providing transparency into the bill pay economy is essential for helping Americans navigate their everyday financial lives, said Steve Shivers, co-founder and CEO of doxo. Household expenses are growing, and many households are straining to cover their most essential services.

California ranked as the most expensive state for household bills, with residents paying a median of $2,892 per month. Hawaii followed at $2,735, while Massachusetts, New Jersey and Maryland rounded out the top five.

The report also found California households face the highest bills-to-income ratio in the nation at 33%, tying Hawaii and Mississippi for the largest share of household income devoted to recurring bills.

West Virginia is the most affordable

West Virginia ranked as the nations most affordable state, with median monthly bills totaling $1,116, or 22% of household income. Mississippi, Arkansas, Alabama and Oklahoma also ranked among the least expensive states in raw monthly costs.

However, the report noted that lower overall bills do not always translate into greater affordability. Mississippi and Arkansas, despite relatively low monthly costs, ranked among the states with the heaviest financial burdens because incomes there lag behind national averages.

By contrast, states such as Utah and Virginia reported monthly bill totals at or above the national median, but households there devoted a smaller percentage of income to essential expenses due to comparatively stronger earning power.

The study analyzed costs across 13 common household bill categories, including mortgage and rent payments, auto loans, auto insurance, utilities, health insurance, mobile phone service and cable or satellite bills.

The 10 most expensive states for household bills were California, Hawaii, Massachusetts, New Jersey, Maryland, Washington, New York, Connecticut, Colorado and New Hampshire.

The least expensive states were Iowa, South Dakota, North Dakota, New Mexico, Kentucky, Oklahoma, Alabama, Arkansas, Mississippi and West Virginia.

Doxo said the report is intended to help consumers better understand regional cost disparities and manage their finances amid continuing economic uncertainty and concerns about rising energy and utility costs.