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Subjects: Survey, Economic News/Analysis

Report Reveals the Average American Now Spends Nearly $25,000 per Year on Household Bills

A new report released today by doxo reveals that while the average U.S. household spends $24,557 annually on the most essential household bills (which is 35% of the U.S. household median income of $70,784) and roughly $2,046 per month, many states rank well above or below this figure. As U.S. households continue to grapple with an increased cost of living, those living in Hawaii, California, New Jersey, Massachusetts, and Maryland may be feeling more pressure as these states top the list as the most expensive, while West Virginia, Mississippi, Arkansas, Oklahoma and Kentucky are listed as the most affordable.

doxo's 2023 State by State Bill Pay Market report takes a look at the $3.87 trillion U.S. consumer bill pay market, with specific state-level breakdown of the 10 most common household bill payment categories. The report, which reflects actual bill payment activity across more than 97% U.S. zip codes, reveals the most and least expensive states for Americans to live based on average spend per month on actual household bill payments.

This unique view of relative expenses, and how much of household income is required to cover bills in each state, is especially relevant given continued strains on household budgets due to inflation. A recent doxoINSIGHTS report found that three in four consumers (73%) say that inflation is impacting their ability to pay bills. 86% of consumers said they are worried about the impact that inflation will have on their financial health in the future, with 72% saying it would take six months or more until their household's financial health improves.

"As consumers navigate their household bills in today's volatile marketplace, bill payers may feel left in the dark, not fully understanding how much they are truly paying each month," said Liz Powell, Senior Director of INSIGHTS at doxo. "Through doxoINSIGHTS, we provide consumers, businesses, and financial institutions with access to the broadest and most transparent data available on actual household spending for critical bills. Armed with this data and the doxo bill pay app, consumers can make more informed decisions, whether deciding to move to a cheaper state or working to grasp monthly expenses, doxo provides clear and concise data to shape a more informed bill payer."

The findings outlined in the 2023 State by State Bill Pay Market report include, for each state, the total monthly spend for bills each month, as well as a breakout of each of the ten most common household bills including: Mortgage; Rent; Auto Loan; Utilities (electric, gas, water & sewer, and waste & recycling); Auto Insurance; Cable & Internet; Mobile Phone; Health Insurance (consumer paid portion); Alarm & Security; and Life Insurance.

The report shows that Hawaiians spend $3,070 each month on the ten most common household bills, which is +50% above the national average. At the other end of the spectrum, households in West Virginia spend an average of $1,530 across the top ten categories, 25.2% below the average nationwide. The 10 most expensive and least expensive states to live are outlined below.

10 Most Expensive States for Household Bills


Monthly Bill Expense
per Household*

Percent of
Household Income

Percent +/-
National Average




+ 50%




+ 38.7%

New Jersey



+ 33.2%




+ 29.8%




+ 25.5%




+ 22.4%

New York



+ 21.9%




+ 20.6%




+ 17.9%




+ 14.1%

10 Least Expensive States for Household Bills


Monthly Bill Expense
per Household*

Percent of
Household Income

Percent +/-
National Average




- 13.4%




- 13.7%

New Mexico



- 14.2%

South Dakota



- 14.8%




- 15.9%




- 16.4%




- 16.7%




- 20.1%




- 21.1%

West Virginia



- 25.2%

*Household Bill Pay Expense averages shown above reflect the ten most common bills paid, including housing (rent/mortgage). See report for details.

To view more from doxoINSIGHTS and its 2023 State by State Bill Pay Market report including a full breakdown of the amount paid in household bills across all of the 50 states, click here.

About doxoINSIGHTS

doxoINSIGHTS provides direct insight into household financial health and spending activity by leveraging consumer surveys and doxo's unique aggregate bill pay data set, comprising actual bill payment activity to confirmed household service providers across the country. doxo data brings together the broadest available data set for analyzing actual household bill payment activity, pulling from over 8 million paying consumers across over 97% of U.S. zip codes. doxo's payment network covers over 120,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This uniquely broad statistical foundation powers doxoINSIGHTS reports ? uncovering key trends for household financial health and bill payment behavior.

About doxo

doxo provides simple, secure all-in-one bill payment to any biller, with any payment method, on any device. A doxoPLUS subscription adds free bank payments and five essential financial protections that boost household financial health. Through these services, doxo currently serves over eight million users who can make payments to over 120,000 local and national businesses, making doxo the largest bill pay directory in the nation. Billers on the network get paid directly, fast and free ? and consumers have complete bill pay independence over when and how they pay their bills. doxo investors include Jackson Square Ventures, MDV, Sigma Partners, and Bezos Expeditions. doxo is based in Seattle, WA. For more information visit www.doxo.com.

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