Utility Bills 101: Average Costs of Utility Bills by State

Q: How do I set up utilities when I move?

To set up utilities when you move , make a list of the utility companies that service your new address and contact each of them a few weeks before your move-in date. Be prepared to provide your name, contact information, desired start date, and a deposit or setup fee.

The average American doesn’t need to review their monthly budget to know that the cost of utilities—like the cost of living—is rising. Several factors, including geographical location, the home’s square footage, and utility usage habits, inform final utility bill figures. However, the floor of these monthly recurring costs continues to increase nationwide, occupying a greater share of household expenses.

To compare the average cost of utilities in each state, we analyzed data from the American Gas Association, the U.S. Energy Information Administration (EIA), Doxo, and the U.S. Census Bureau. We also asked several experts to weigh in on the impact of rising utility costs on American families, the factors driving up these costs, and the role green energy can play in reducing expenses over the long term.

Technological advances in renewable energy have made it easier and more affordable for homeowners to offset the costs of traditional utilities with green energy sources. Yet, homeowners can reap similar utility bill savings by replacing aging and inefficient components with high-efficiency systems, or by installing these units in new homes from the get-go. For example, although HVAC installation costs usually come with a hefty upfront expense in either case, pairing this targeted upgrade with other small changes can result in significant utility bill savings for the average American household.

Key Findings

Connecticut has the highest average monthly utility bills at $794.
Idaho has the lowest average utility bills at $495 per month.
Electricity represents the highest type of utility bill for homeowners, with an average cost of $137, according to data from the EIA.
Waste and recycling is the lowest type of utility bill, with an average cost of $70, according to Doxo.
The average U.S. household spends about $590 on utility bills monthly.

States With the Highest Utility Bills

Households in Connecticut, Maryland, Maine, Alaska, and Massachusetts face the highest average utility costs nationwide. “High utility costs can make it harder to cover essentials like food, rent, and healthcare,” says Jim Brau, professor of finance at Brigham Young University. Below, explore the average cost of basic utilities among these five states.

Connecticut

Connecticut residents pay an average of $794 monthly in utility bills. Among all utility bills—including gas, electric, water and sewer, internet and cable, phone service, and waste—Connecticut’s average electric bill is the highest at $203, second only to Hawaii ($213). The $75 average phone bill residents of the Constitution State pay ties with Nevada for the second-lowest in the nation, after an average bill of $71 in Illinois.

Maryland

Utilities cost Maryland residents an average of $782. per month. While the average gas bill totals $92 per month, water and sewer costs more than twice that, at $189 on average. Monthly waste costs tie with Massachusetts at $127 monthly, the highest nationwide.

Maine

Close to half of the $733 average utility bill in Maine is spent on gas ($148) and electric ($154) services, the most expensive of all utilities in the Pine Tree State. Maine residents spend more on gas than Alaskans, who pay an average of $133 per month. However, waste removal in Maine costs an average of $85 monthly, the cheapest utility in the state.

Alaska

Alaskans pay an average of $727 for their monthly utility bills, with internet costing the most. At an average of $143 per month, monthly internet costs tie with Tennessee for the fourth-highest nationwide, behind South Dakota ($147), Rhode Island ($150), and Delaware ($157). Waste services in Alaska average $70 monthly, the lowest among the top-five states with the highest average utility bills.

Massachusetts

Residents of the Bay State pay an average of $723 per month for their utilities, $17 more than those in Hawaii and $227 more than those in Idaho. Water and sewer, internet and cable, and phone bills average $100 each. Of all utilities in Massachusetts, electricity costs the most at an average of $166 per month.

States With the Lowest Utility Bills

Residents living in the following five states with the lowest utility bill costs can allocate more of their monthly budget to other living expenses. However, affording even these monthly utility bills may still feel out of reach for some.

“Residential utility costs will tend to affect low-income households disproportionately since utilities are mostly a necessity you simply need a certain amount of,” says Christian Roessler, an associate professor at Cal State East Bay. “It’s a bigger share of the budget for a low-income household, compared to a high-income household. Any price increase takes a bigger bite out of a low-income household’s budget.”

Idaho

The average utility bill in Idaho costs $495 per month, the lowest nationwide. Gas, internet and cable, and phone services cost less in Idaho than in Utah—the state with the second-lowest utility bills in the U.S.—but electricity, water and sewer, and waste services cost more.

Utah

Of the average $502 monthly utility bill in Utah, more than 20% goes toward internet and cable services ($117). Waste services represent the least expensive utility bill for Utah residents. However, the average monthly electric bill of $85 is the lowest in the nation.

Iowa

The average monthly utility bill costs residents of the Hawkeye State $507. Iowa residents also pay $100 each for water and sewer, internet and cable, and phone services. At $41, gas costs the least in Iowa nationwide, but Iowa residents pay most of their monthly utility bill toward electricity, at $113.

West Virginia

At an average monthly cost of $508, utility bills in West Virginia total only about 1 dollar more than those in Iowa. Electricity is the highest bill for residents of the Mountain State at $139 per month, while waste, which costs $44 per month, is the lowest. Water and sewer services cost West Virginia residents $59 monthly, only $4 more than Alabama’s $55—the lowest nationwide.

New Mexico

Utilities cost New Mexico residents an average of $517 per month, with internet and cable services accounting for the largest share at $122. The remaining utilities cost less than $100 each per month. Gas ($62) and waste ($69) represent the least expensive utilities in New Mexico.

Average Monthly Utility Costs in the U.S.

The cost of utilities is a significant part of monthly household expenses in the U.S. These costs can vary depending on the region, household size, and usage patterns. Here’s a breakdown of average monthly utility costs in the U.S.:

Electric: $137
Gas: $80
Water and sewer: $86
Waste and recycling: $70
Internet and cable: $121
Phone: $96
Total monthly average cost: $590

“Utility costs have generally gone up over time, with occasional dips,” says Brau. Yet, more recently, “Rising demand, aging infrastructure, inflation, and the cost of transitioning to cleaner energy are all pushing prices higher,” adds Brau.

Andrew Meyer, founder and CEO of Arbor, emphasizes the correlation between rising utility costs and the increased demand for electricity alone, largely “driven by data centers powering artificial intelligence (AI), cloud services, and the digital economy.” While extreme weather events also strain power grids, “new power plants and grid infrastructure aren’t keeping up with the surge in demand,” says Meyer.

Electric Bill

Electricity is a cornerstone utility in modern life, powering everything from your lighting to your heating and cooling systems. If you have a well, electricity ensures your home has running water. Electricity is woven into nearly every aspect of daily life, so understanding your electric bill is important.

Average Cost of Electric Bills

Electricity cost households $137 monthly nationwide in 2023, according to the EIA. Alaska and Hawaii residents paid the highest electricity costs, at $183 per month. Residents of states in the East North Central region—including Illinois, Indiana, Michigan, Ohio, and Wisconsin—paid the lowest amount, at $116 per month.

How To Save Money on Your Electric Bill

Investing in solar power from a reputable solar provider can save money on your electric bill in the long run. But if you don’t have panels, you can try these simple steps for short-term results:

Perform regular maintenance on your HVAC system to improve efficiency.
Set your thermostat a few degrees lower in the winter and higher in the summer.
Take advantage of off-peak rates, if available.
Unplug devices when not in use to prevent “phantom” energy consumption.
Use energy-efficient appliances and LED light bulbs.

Gas Bill

Natural gas is generally used for heating and cooking in homes. Not all homes use natural gas, with some using electric systems, but gas powers stoves, furnaces, and water heaters in those that do. In colder climates, natural gas can keep your house warm without requiring you to spend an outrageous amount on your electricity bill.

Average Cost of Gas Bills

Based on the latest data from the American Gas Association (AGA), the average gas bill in the U.S. is $80 per month, an annual expense of $964. This is a notable increase from the 2021 reported annual average of $761, reflecting changes in consumption patterns and market prices.

How To Save Money on Your Gas Bill

Natural gas is often used for heating, so you can lower your monthly bills by upgrading your insulation and adjusting your thermostat settings. Here’s a list of tips to decrease your home gas usage:

Dial down the temperature on your water heater.
Insulate your hot water pipes.
Opt for energy-efficient appliances.
Seal windows and doors with caulk or weatherstripping to prevent heat loss.
Use a smart thermostat to lower the temperature when you’re asleep or away.

Water and Sewage Bill

Running water has become a staple in modern living. Everything from cooking and cleaning to personal hygiene and routine lawn maintenance requires water. Monitoring your water bill can help you reduce your usage and even detect potential leaks based on excessive costs.

Average Costs of Water and Sewage Bills

The average U.S. household pays $86 per month for water and sewage services, which accounts for 3% of all bill expenses, according to Doxo. In half of the 50 U.S. states, water and sewage costs are equal to or below the national median. Water and sewage bills cost Maryland residents the most ($189), while residents of Alabama and Tennessee pay the least ($55).

How To Save Money on Your Water and Sewage Bill

Replacing freshwater with household wastewater that’s not used to flush the toilet—also known as greywater—can significantly reduce your water and electricity bills, according to the Virginia Cooperative Extension. Several states regulate the use of greywater, so check with your local city or county government to inquire about specific laws in your state. Below are additional ways you can save on your monthly water and sewer bills, according to the U.S. Environmental Protection Agency (EPA):

Install efficient water fixtures and appliances to use at least 20% less water.
Run a full dishwasher.
Choose WaterSense-labeled or ENERGY STAR-certified appliances to save more than $380 annually.
As you brush your teeth, shave, or wash dishes, turn off the tap if you’re not directly using it.
Replace your existing showerhead with a WaterSense-labeled one to reduce water and electricity costs by $70.
Save up to 25,000 gallons of water annually by installing and maintaining an automatic landscape irrigation system.

Waste and Recycling Bill

Your local trash collection company handles the removal and disposal of common household garbage. This service is usually provided by your local government or a private company; some households have multiple options. Effective waste management ensures a more hygienic living environment and a cleaner community. This bill may or may not include recycling services.

Average Costs of Trash Bills

Households in the U.S. pay an average of $70 for waste and recycling services, equivalent to 2% of their total expenses for utility bills, according to Doxo. Massachusetts and Maryland residents pay the most for trash, at $127. Oklahoma residents pay less than 20% of that, at only $25 per month for waste and recycling.

How To Save Money on Your Trash Bill

Lowering your trash bill is typically as simple as being mindful of waste generation—especially if your trash company offers multiple bin sizes or tiers of service. Here are a few tips:

Look out for additional fees and avoid extra services.
Check with your provider about discounts and bundling options.
Opt for a smaller trash bin if your household produces less waste.
Separate recyclables to take advantage of recycling credits.
Use a compost bin for organic waste to reduce regular trash.

Internet and Cable Bill

Even before working from home became the new normal for many people, internet and cable services were practically a must-have. Even if you’ve ditched traditional cable services, streaming services still require an internet connection. Read more about the average cost of internet and cable below and discover how you can save on these essentials.

Average Costs of Internet and Cable Bills

American households pay an average of $121 monthly on internet and cable services, or the equivalent of 4% of their household bill pay expense, according to Doxo. Delaware residents pay the most nationwide, at $36 more per month than the national average, while Floridians pay only $96 monthly. Three in five states pay more than the national average for internet and cable.

How To Save Money on Your Internet and Cable Bill

Shop around and compare discounts to save money on your internet bill. You can also take the following steps:

Assess speed requirements and downgrade your plan if your current internet speed exceeds your needs.
Buy your modem and router to avoid rental fees from your provider.
Cancel any premium channels you rarely use. Or, opt for a smaller cable package with only the channels you watch.
Combine internet and cable for potential discounts.
Contact your provider to negotiate better rates, using competitor offers as leverage.
Look for provider discounts, promotions, and government assistance programs such as Lifeline.
Regularly review your bill for unnecessary charges and remove services you don’t use.
Switch to more affordable providers or free streaming services as substitutes for cable.

Phone Bill

The prevalence of mobile phones—and designated cell service providers—requires little explanation. Used for both personal and professional activities, smartphones connect you to friends, family, and the outside world via email, social media, text, and voice calls. Compare your monthly phone bill costs to those of the nation and users in other states below.

Average Costs of Phone Bills

Mobile phone expenses comprise the same percentage (4%) of household bill pay expenses as internet and cable, but cost an average of $96 nationwide, according to Doxo. Residents in Nebraska pay the most, at $136 per month. Illinois residents pay $71 monthly for phone services, nearly half the cost of what Nebraska residents pay, and $25 less than the national average.

How To Save Money on Your Phone Bill

Save money on your phone bill by shopping around. Here are a few tips for cutting costs:

Avoid unnecessary add-ons, such as phone insurance or international calling.
Check if your employer, school, or organization offers a corporate discount.
Evaluate your data usage and choose the most cost-effective plan that meets your needs.
Keep an eye out for promotional offers.
Take advantage of family or multi-line discounts for cost-sharing.

Our Conclusion

Utility bills are more than just monthly payments; these expenses reflect consumption habits, regional policies, and the efficiency of home appliances. By examining average costs across U.S. states, we gain a clearer picture of the financial impact utilities have on American households nationwide. Armed with this knowledge, you can make informed decisions, adopt energy-saving practices, and explore cost-saving opportunities. Proactive steps ease the financial burden and pave the way for a more sustainable and economically sound future.

FAQs About Utility Bills

How do you budget for utility bills?

You can budget for utility bills more accurately by adding up your last year’s worth of bills and dividing by 12. This will give you a monthly average that accounts for seasonal fluctuations. Many utility companies offer budget billing plans that do this work for you and make your monthly bills more predictable.

How do I set up utilities when I move?

To set up utilities when you move, make a list of the utility companies that service your new address and contact each of them a few weeks before your move-in date. Be prepared to provide your name, contact information, desired start date, and a deposit or setup fee.

Why do my utility bills change from month to month?

Some utility bills change from month to month due to seasonal fluctuations. For instance, you might have a higher electricity bill in the summer, when your AC is running more often. You might also see a difference due to rate changes, the length of the billing cycle, and whether your bill was based on an estimate or actual reading.

What is the difference between estimated and actual meter readings?

An estimated meter reading is a calculation your utility company makes based on past or average usage. An actual reading occurs when a representative physically reads your meter. Your bill will be adjusted if an estimate was inaccurate.

How do I get help paying my utility bills?

You can get help paying your utility bills from state and federal programs such as LIHEAP (Low Income Home Energy Assistance Program). Some local organizations and individual utility companies may also offer assistance to families in need.

Methodology

To determine the cost of utilities in each state, we analyzed data from the following sources:

Average monthly gas bill from the American Gas Association
Average electric bill from the U.S. Energy Information Administration
Average water and sewage bill from Doxo
Average trash bill range from Doxo
Average phone bill from Doxo
Average income from the U.S. Census Bureau
Average internet and cable bill from Doxo