State-by-State Breakdown: Understanding Utility Bills Across America

Wondering how your state’s utility bills stack up against the rest of the country? Your monthly utility costs could vary dramatically depending on where you call home. To provide a comprehensive look at utility expenses nationwide, we examined billing data from DOXO’s 2023 State by State Bill Pay market report, tracking average monthly and annual utility costs for all 50 states.

The data reveals significant regional variations, with some states paying nearly twice as much as others for the same essential services. Here’s what the typical utility landscape looks like across America.

The National Picture

The average utility cost across the United States serves as our baseline for comparison. By understanding where your state falls relative to this national average, you can better gauge your household’s cost position and make informed decisions about relocation or budgeting.

High-Cost Utility States

Hawaii leads the pack with the steepest utility bills. Residents face average monthly utility costs of $633, translating to $7,596 annually—a staggering 80.34% above the national average. This premium reflects Hawaii’s geographic isolation and reliance on imported energy.

Northeastern states consistently rank among the most expensive. Connecticut residents pay $463 monthly ($5,556 annually), about 31.91% above average. New Jersey follows closely at $467 monthly ($5,604 yearly), representing a 33.05% premium. Maine rounds out the trio with $500 monthly bills ($6,000 annually), 42.45% higher than the national average.

Alaska, while geographically remote, shows slightly lower costs than Hawaii at $424 monthly ($5,088 yearly), still 20.80% above the national average. Vermont adds $428 monthly ($5,136 annually), placing it 21.94% above national baseline.

Mid-Range Utility Costs

Several states cluster around or slightly above the national average. Maryland residents spend $394 monthly ($4,728 annually), approximately 12.25% more than average. Massachusetts averages $404 monthly ($4,848 yearly), with a 15.10% premium. New York rounds to $384 monthly ($4,608 annually), about 9.40% above the national figure.

These mid-Atlantic and northeastern regions typically experience higher heating costs during winter months, explaining their elevated utility bills compared to warmer climates.

Budget-Friendly Utility States

The most affordable utility costs appear in the South and Mountain West. Mississippi leads the savings category with the lowest average monthly utility costs at just $255, equating to $3,060 annually—a notable 27.35% below the national average. This represents a difference of $1,152 less per year than the national average.

South Dakota follows at $278 monthly ($3,336 yearly), approximately 20.80% below average. Missouri averages $284 monthly ($3,408 annually), running 19.09% lower than the national standard.

Other affordable regions include North Carolina ($282 monthly, $3,384 yearly), Nevada ($290 monthly, $3,480 yearly), and Tennessee ($294 monthly, $3,528 yearly).

Regional Patterns and Considerations

Southern states generally demonstrate lower utility costs, reflecting warmer climates that reduce heating requirements. Georgia comes in at $286 monthly ($3,432 yearly), while Louisiana stays at $310 monthly ($3,720 annually).

Western and Mountain states show mixed patterns. Colorado averages $322 monthly ($3,864 yearly), benefiting from competitive energy markets. Arizona residents pay $357 monthly ($4,284 yearly), slightly above average due to substantial air conditioning demands.

Midwest balance proves moderate. Indiana offers some of the nation’s better rates at $300 monthly ($3,600 yearly), 14.53% below average. Ohio averages $369 monthly ($4,428 annually), running about 5.13% above the baseline.

State-by-State Complete Reference

The comprehensive data spans all 50 states with precise monthly and annual averages. Alabama residents spend $387 monthly ($4,644 yearly). Arkansas averages $315 monthly ($3,780 yearly). California comes in at $368 monthly ($4,416 yearly). Delaware costs $313 monthly ($3,756 yearly). Florida averages $335 monthly ($4,020 yearly). Idaho checks in at $321 monthly ($3,852 yearly). Illinois runs $340 monthly ($4,080 yearly). Iowa averages $331 monthly ($3,972 yearly). Kansas costs $361 monthly ($4,332 yearly). Kentucky averages $351 monthly ($4,212 yearly). Minnesota runs $294 monthly ($3,528 yearly). Montana costs $352 monthly ($4,224 yearly). Nebraska averages $331 monthly ($3,972 yearly). New Hampshire runs $386 monthly ($4,632 yearly). New Mexico costs $357 monthly ($4,284 yearly). North Dakota averages $344 monthly ($4,128 yearly). Oklahoma runs $348 monthly ($4,176 yearly). Oregon costs $363 monthly ($4,356 yearly). Pennsylvania averages $336 monthly ($4,032 yearly). Rhode Island runs $360 monthly ($4,320 yearly). South Carolina costs $298 monthly ($3,576 yearly). Texas averages $296 monthly ($3,552 yearly). Utah runs $293 monthly ($3,516 yearly). Virginia costs $334 monthly ($4,008 yearly). Washington averages $389 monthly ($4,668 yearly). West Virginia runs $315 monthly ($3,780 yearly). Wisconsin costs $356 monthly ($4,272 yearly). Wyoming averages $324 monthly ($3,888 yearly).

What This Means for Your Budget

Understanding your state’s typical utility costs helps establish realistic household budgets and informs relocation decisions. Those contemplating a move to different regions should factor in these significant variations—relocating from Hawaii to Mississippi could cut your annual utility expenses by more than $4,500, while moving from the South to the Northeast could increase costs substantially.

Energy efficiency improvements, utility provider selection, and climate adaptation strategies become increasingly important in high-cost states, potentially offsetting portions of these elevated expenses.

Methodology: This analysis examined utility costs from DOXO’s State by State Bill Pay 2023 market report, covering all 50 U.S. states. Data includes average monthly and annual utility expenses, percentage variance from the national average, and dollar amount differences. Information reflects billing data current as of March 2024.