Your monthly expenses compared to average U.S. spending levels?
Most Expensive States for Household Bills Revealed in 2025 Report
A new report, the 2025 State-by-State Bill Pay Market Report, has shed light on the cost of living across the United States, ranking states by median monthly household bill burden. The findings indicate that California and Hawaii are the most expensive states for household bills in 2025, with bills costing about one-third of household income.
According to the report, California households pay a median of $2,854 per month for essential bills, which is nearly 40% more than the national average. Hawaii follows closely behind with a median monthly bill of $2,712, representing 33% of household income.
Other states in the top 10 most expensive states for household bills include New Jersey, Massachusetts, Maryland, Washington, New York, Colorado, Connecticut, and Alaska. These states have median monthly bills ranging from $2,614 to $2,391, accounting for 27-30% of household income.
Electricity costs are a significant contributor to the high bill costs in California and Hawaii. Hawaii has the highest residential electricity rates at 41.03 cents per kWh, followed by California at 35.03 cents per kWh. Other expensive states for electricity include Connecticut, Massachusetts, Rhode Island, and New York.
While the report does not explicitly list the most affordable states, states not appearing on the high-cost list tend to have lower median bills and electricity rates. For example, West Virginia households pay a median of $1,149 per month for essential bills, which is less than half of the national average.
Residents in states like West Virginia, Mississippi, Arkansas, and Oklahoma have typical monthly costs for essential bills around $1,500, representing a more manageable 20-25% of household income.
The report also notes that some state-level policy changes, such as property taxes and possible revenue increases from high-income households in states like Maine, New Jersey, and Rhode Island, may influence future household bill burdens.
In summary, the most expensive states for household bills in 2025 are led by California and Hawaii, with monthly bills about 30-33% of household income. Relocating from New Jersey to Kentucky could save a family more than $1,000 a month on bills due to differences in housing and utilities. The data suggests that housing and insurance costs are major contributors to financial stress in certain regions.
Managing personal-finance in the most expensive states, such as California and Hawaii, can be challenging due to high household bills. Effective budgeting, therefore, may involve reducing non-essential expenses and finding ways to lower utility costs, given electricity prices in these states.
