As Inflation Reaccelerates, New doxo Report Reveals Geographic Disparities in US Household Bill Costs

Tremendous expense disparities: State-by-State Analysis shows bills in the most expensive States 2.5X higher than the most affordable.

SEATTLE--(BUSINESS WIRE)--doxo today released its 2026 State-by-State Bill Pay Market Report, a comprehensive analysis designed to frame the true cost of household obligations in an era of heightened economic uncertainty. The latest data reveals that the average American household pays a median of $2,095 per month toward essential bills—roughly 30% of the national median household income. However, financial pressure varies significantly by region; while residents in the most expensive states face median monthly bills up to 38% above the national median ($2,892), households in the most affordable regions spend as much as 47% less than the median ($1,116). For a complete breakdown of the findings, visit https://www.doxo.com/w/cost-of-bills-index/.

The 2026 report highlights a substantial "affordability gap" within the $5.03 trillion U.S. Bill Pay Economy™. While public attention often shifts between various economic indicators, a primary concern for American families remains the high cost of essential services. In particular, uncertainty surrounding energy costs and utility rates creates a complex environment for household budgeting. This report isolates the recurring costs that dictate long-term stability, providing transparency into the expenses that most directly impact a family’s bottom line.

Presenting this data on a state-by-state basis reflects how economic conditions are not uniform across the country. With markets and cost of living varying significantly by region, state-level analysis provides consumers with the actionable insights necessary to take control of their financial health. Whether benchmarking current liquidity or planning for the future, having a clear view of how local costs intersect with earning power is critical for navigating the current financial landscape.

“Providing transparency into the bill pay economy is essential for helping Americans navigate their everyday financial lives,” said Steve Shivers, Co-Founder and CEO, doxo. “Household expenses are growing, and many households are straining to cover their most essential services. Doxo’s all-in-one bill pay service, with its unique nationwide comparison data, empowers households to understand the true cost of living, compare expenses, and manage their finances more effectively.”

The 2026 report details:

• Monthly and annual household bill median costs for each state.
• Breakdowns of the 13 most common household bills: Gas, Electric, Waste & Recycling, Water & Sewer, Cable & Satellite, Mobile Phone, Auto Loans, Auto Insurance, Life Insurance, Health Insurance, Alarm & Security, Rent, and Mortgage.

Key findings include:

California is the most expensive state in raw cost ($2,892) and carries the highest bills-to-income ratio (33%). Conversely, West Virginia remains the most affordable in both raw cost ($1,116) and percentage of income (22%).

Mississippi ($1,547) and Arkansas ($1,580) rank among the ten least expensive states for raw bill costs, but rank among the top ten most burdened states in the nation (33% and 31%).

Utah ($2,100) and Virginia ($2,258) have raw monthly costs that sit at or above the national median, yet they rank among the 10 least burdened states (both 27%). In these regions, higher earning potential outpaces the cost of essential household bills.

Full rankings of the most expensive and most affordable states to live in are available in the complete report. A list of the 10 most expensive and least expensive states is outlined below.

10 Most Expensive States for Household Bills
State	Median Monthly Bill¹	Cost of Bills Index (COBI)²	% of HH Income^3
California	$2,892	138	33%
Hawaii	$2,735	131	33%
Massachusetts	$2,668	128	30%
New Jersey	$2,647	127	29%
Maryland	$2,544	122	29%
Washington	$2,463	118	29%
New York	$2,450	117	32%
Connecticut	$2,392	114	28%
Colorado	$2,367	113	29%
New Hampshire	$2,321	111	28%

10 Least Expensive States for Household Bills
State	Median Monthly Bill¹	Cost of Bills Index (COBI)²	% of HH Income^3
Iowa	$1,640	78	26%
South Dakota	$1,640	78	27%
North Dakota	$1,631	78	25%
New Mexico	$1,630	78	30%
Kentucky	$1,624	78	30%
Oklahoma	$1,605	77	29%
Alabama	$1,603	77	29%
Arkansas	$1,580	76	31%
Mississippi	$1,547	74	33%
West Virginia	$1,116	53	22%

¹Median Monthly Bill: Represents the median monthly expense for the 13 most common household bills, inclusive of housing (mortgage/rent) and essential services.

²Cost of Bills Index™ (COBI): A standardized metric where 100 represents the national median; a score above 100 indicates costs higher than average, while a score below 100 indicates costs lower than average.

³% of HH Income: Represents the percentage of local median household income required to pay for essential bills, serving as the indicator of "financial burden" for residents.

For more details on the COBI methodology, visit: https://www.doxo.com/w/cost-of-bills-index/.

doxoINSIGHTS Delivers Transparency Into Core Household Financial Obligations

In addition to State-by-State breakdowns, doxoINSIGHTS provides a comprehensive view into the composition of the thirteen most essential household bills: Gas, Electric, Waste & Recycling, Water & Sewer, Cable & Satellite, Mobile Phone, Auto Loans, Auto Insurance, Life Insurance, Health Insurance, Alarm & Security, Rent, and Mortgage. Across every state, county, and city, doxoINSIGHTS delivers the following:

• Bill Spending Breakdown by Category: Local median spend for each of the thirteen essential household bill categories, benchmarked against the national median
• “Bill Pay Cost of Living” Rankings: A standardized index ranking every city, county, and state based on total household bill spend—both in absolute terms and relative to local income levels—enabling direct comparisons across regions.

Powered by Actual Consumer Payment Data at National Scale

doxo’s bill pay network enables all-in-one payments to more than 120,000 providers across 45+ service categories nationwide. Leveraging tens of millions of real bill payments across 97% of U.S. ZIP codes—and spanning all income brackets and regional demographics—the 2026 U.S. Household Bill Pay Report reflects what Americans are actually paying for their essential bills today.

Unlike traditional industry estimates, which often combine household bills with employer-paid expenses (such as health insurance and taxes) or include discretionary spending like credit card balances, doxoINSIGHTS isolates true consumer-paid, recurring household obligations. This approach delivers one of the most accurate and comprehensive views of bill payment behavior, category spend, and household penetration rates available in the market.

About doxoINSIGHTS

doxoINSIGHTS provides direct insight into The Bill Pay Economy™ 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 10 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 delivers innovation that transforms the bill pay experience for consumers, billers and financial technology providers. For over 10M consumers, doxo’s all-in-one bill pay makes it simple to organize and pay any bill on any device through a secure checkout. For billers, doxo’s network-driven platform enables online and mobile payments with a ridiculously simple integration, radically lower costs, and game-changing features that are unavailable with legacy bill pay vendors. For fintech partners, doxo delivers financial innovations to consumers across 97% of US Zip Codes, paying from more than 5,000 financial institutions to over 120,000 billers in 45+ service categories. For employees, doxo is a creative, ever-learning team that is passionate about building fintech tools that dramatically improve the bill pay experience. For investors, doxo provides an extraordinary opportunity to invest alongside Jackson Square Ventures, MDV, and Bezos Expeditions to disrupt a market that accounts for over $5T of US Household spend. To learn more about America’s leading bill pay network, visit doxo.com.