U.S. households are now spending a median of $2,095 per month on essential bills, with recurring expenses consuming roughly 30% of median household income nationwide, according to a new report from doxo.
The findings, released in doxo’s 2026 State-by-State Bill Pay Market Report, highlight how affordability pressures increasingly extend beyond mortgage rates alone as consumers face rising costs tied to housing, utilities, insurance, and other recurring obligations.
The report estimates the broader U.S. “Bill Pay Economy” has grown to approximately $5.03 trillion annually. Researchers analyzed monthly and annual household bill costs across all 50 states and examined 13 of the most common household expenses: gas, electric, waste and recycling, water and sewer, cable and satellite, mobile phone, auto loans, auto insurance, life insurance, health insurance, alarm and security, rent, and mortgage payments.
“Household expenses are growing, and many households are straining to cover their most essential services,” said Steve Shivers, co-founder and CEO of doxo.
California ranked as the nation’s most expensive state for household bills, with residents paying a median of $2,892 per month. The state also posted the country’s highest bills-to-income ratio, with essential household bills consuming 33% of median household income.
Hawaii ranked second nationally at $2,735 per month, followed by Massachusetts at $2,668.
At the opposite end of the spectrum, West Virginia ranked as the nation’s most affordable state for household bills, with median monthly expenses totaling $1,116. The state also posted the lowest bills-to-income ratio nationally at 22%.
The report also found that lower monthly costs do not necessarily translate into greater affordability.
Mississippi and Arkansas ranked among the 10 least expensive states in raw household bill costs at $1,547 and $1,580 per month, respectively. But both states ranked among the nation’s most financially burdened because household income levels lag behind expenses. In Mississippi, essential bills consume 33% of median household income, while Arkansas households spend 31%.
Meanwhile, Utah and Virginia reported monthly household bill totals at or above the national median — $2,100 and $2,258, respectively — yet ranked among the 10 least burdened states because stronger income levels offset the costs. In both states, household bills account for 27% of median household income.
The findings come as housing affordability remains a central challenge across the mortgage industry. Alongside elevated mortgage rates and home prices, borrowers are also contending with rising utility costs, insurance premiums, and other recurring household expenses that increasingly affect monthly budgets.
The report also highlighted major regional disparities in overall household spending. Connecticut ranked eighth nationally for household bill costs at $2,392 per month, while New York ranked seventh at $2,450.
doxo said its analysis is based on anonymized bill payment data collected from more than 10 million consumers across 97% of U.S. ZIP codes.
*This article was primarily written by a human author. AI tools were used in a limited capacity for research assistance or light editing.
