Big Bills Ahead: 20 States With the Highest Cost of Living

Managing household bills is a major part of everyday life, but the costs can vary widely depending on where you live. Did you know the average U.S. household spends $25,513 every year on essential bills? 

These expenses include necessities like housing, utilities, and insurance, which can quickly add up and make a significant impact on monthly budgets. In some states, these costs rise far above the national average, creating financial challenges for many families.

To better understand these differences, we’re turning to the 2024 Cost of Bills Index Report (COBI) by doxo. This report is built using data gathered across the country and focuses on the ten most common household bills. 

These categories include utilities, cable and phone services, mobile plans, auto loans, auto insurance, life insurance, health insurance, alarm and security systems, rent, and mortgage payments. The index provides a clear and standardized comparison of what people spend on these bills in different states.

This article ranks the 20 states with the highest cost of living. Each state’s average income, monthly expenses, and percentage above the national average are included to give a complete view of how these costs stack up. 

Are you surprised by how much these bills can vary from state to state? Which state do you think has the most expensive cost of living? Let us know in the comments!

20. Illinois

Illinois ranks 20th with a Standard COBI of 104, which is 4% above the national average. Households in this state spend an average of $2,204 per month on essential bills. The average household income here is $82,621, which places it slightly above the national median. 

While housing and utilities make up the largest portion of costs, auto loans and insurance also add to the higher-than-average expenses. Many residents face challenges managing mortgages and rent, which contribute to the state’s position on this list. 

Despite its higher costs, Illinois continues to attract families and businesses, thanks to its strong economy and urban centers.

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19. Texas

Texas comes in 19th with a Standard COBI of 104, placing it 4% above the national average. The average monthly spend in Texas is $2,208, with households earning around $77,449 per year. 

Housing costs, including both rent and mortgages, play a significant role in driving up expenses. Auto loans and insurance are also higher than average, making transportation another major budget factor. 

With a growing population, rising home prices and utility rates have made Texas one of the more expensive states to live in. Despite these challenges, it remains a popular destination for its job market and economic opportunities.

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18. Minnesota

Minnesota ranks 18th with a Standard COBI of 104, reflecting costs that are 4% higher than the national average. Residents here spend about $2,216 each month on household bills, supported by an average income of $86,752. 

Higher costs for utilities, health insurance, and mortgage payments drive up expenses across the state. Auto loans and insurance also add to monthly financial pressures, particularly in urban areas. 

With its mix of city living and rural charm, Minnesota balances affordability concerns with a strong economy and high quality of life. Still, these bills make budgeting a key focus for many households.

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17. Florida

Florida takes the 17th spot, with a Standard COBI of 106, making it 6% above the national average. Households spend about $2,259 monthly, supported by an average income of $71,445. 

Rent and mortgage payments are among the highest costs, driven by demand in urban and coastal areas. Insurance rates, especially for homeowners and health plans, also weigh heavily on budgets. 

Utility bills, including air conditioning, add to higher expenses, particularly during the summer months. While Florida’s popularity continues to rise, these costs highlight the financial trade-offs of living in the Sunshine State.

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16. Nevada

Nevada ranks 16th with a Standard COBI of 107, putting it 7% above the national average. Residents spend about $2,279 per month on bills, supported by an average income of $74,674. 

Housing prices are one of the main reasons for higher costs, with rent and mortgages continuing to rise. Utilities and auto insurance also take up a sizable portion of household budgets. 

Many residents face increased expenses tied to the state’s growing population and booming real estate market. Even with these higher costs, Nevada’s tax advantages and entertainment options keep it appealing to many.

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15. Utah

Utah comes in 15th with a Standard COBI of 108, standing 8% above the national average. The average household spends $2,290 each month, while incomes average $88,613. 

Rising housing costs are a primary factor, as both rent and mortgage prices have climbed significantly. Auto loans and insurance are also above the national average, adding to monthly bills. 

Utility costs, while more moderate, still play a role in pushing expenses higher. Despite its higher expenses, Utah remains a fast-growing state thanks to its job opportunities and strong economy.

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14. Oregon

Oregon is ranked 14th, with a Standard COBI of 111, which is 11% above the national average. Households spend about $2,363 per month, with average incomes at $79,189. Housing costs are the largest contributors, as rent and mortgage rates outpace the national average. 

Utilities, mobile plans, and auto insurance also add to the burden. Many residents also pay higher premiums for health insurance, which impacts overall affordability. Oregon’s natural beauty and urban hubs make it attractive, but the cost of living can stretch household budgets. 

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13. Virginia

Virginia ranks 13th with a Standard COBI of 113, which is 13% higher than the national average. Households in this state spend approximately $2,406 per month, supported by an average income of $93,397. 

Rising housing prices and higher-than-average utility costs play a significant role in the overall expenses. Auto insurance rates and health insurance premiums also contribute to the higher bills residents face. 

With its mix of urban and suburban areas, Virginia attracts families and professionals but often leaves them managing tighter budgets. Despite these challenges, the state’s strong economy and access to job opportunities keep it a desirable place to live.

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12. Alaska

Alaska takes the 12th spot with a Standard COBI of 113, placing it 13% above the national average. Monthly household bills average $2,410, supported by an income of $86,140. 

Remote geography drives up costs for utilities and transportation, making these two categories among the most expensive. Health insurance and auto expenses also add to the financial burden, reflecting the higher costs of maintaining vehicles and accessing care in less densely populated areas. 

Housing expenses, including rent and mortgages, further increase costs. Despite its breathtaking landscapes, Alaska’s elevated bills highlight the challenges of living in such a remote state.

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11. Rhode Island

Rhode Island ranks 11th with a Standard COBI of 116, standing 16% above the national average. Residents spend around $2,469 per month on household bills, supported by an average income of $83,651. 

Housing costs, including mortgage payments and rent, are among the primary expenses contributing to the high cost of living. Utilities, health insurance, and auto-related expenses also push monthly bills higher. 

Many households in this small but densely populated state face higher premiums for home security and insurance, reflecting localized market rates. While Rhode Island offers a coastal lifestyle, these expenses make budgeting an important focus for residents.

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10. New Hampshire

New Hampshire takes 10th place with a Standard COBI of 117, which is 17% higher than the national average. The average household spends $2,482 per month, backed by an income of $92,699. 

Mortgage and rent payments make up a large portion of expenses, driven by higher housing demand in this region. Health insurance and utility bills further increase monthly costs, adding pressure to household budgets. 

Auto loans and insurance also play a role, especially for those commuting to work. While New Hampshire’s scenic landscapes and high-quality schools appeal to families, living costs require careful financial planning.

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9. Colorado

Colorado ranks 9th with a Standard COBI of 120, standing 20% above the national average. Residents spend about $2,553 each month on bills, supported by an income of $91,038. 

Housing costs, including rent and mortgage payments, are some of the biggest contributors to the state’s high expenses. Utility bills, health insurance, and auto-related payments also exceed national averages, adding to the financial strain. 

Rising home prices and a growing population continue to fuel demand, pushing living costs higher. Colorado’s appeal lies in its outdoor lifestyle and economic growth, but expenses remain a challenge for many households.

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8. Connecticut

Connecticut ranks 8th with a Standard COBI of 121, which is 21% above the national average. Monthly expenses total about $2,569, supported by an income of $98,025. Housing prices, including both rent and mortgages, account for much of the higher costs in this state. 

Auto insurance premiums and health care expenses also contribute to the higher-than-average bills faced by residents. Utility bills, including electricity and water, make up a significant portion of household budgets. 

While Connecticut offers proximity to major cities and excellent schools, these higher costs make it one of the more expensive states to call home.

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7. New York

New York ranks 7th with a Standard COBI of 124, standing 24% higher than the national average. Households spend about $2,627 per month, with average incomes around $88,943. 

Housing remains the largest expense, particularly in urban areas where rent and mortgage rates outpace much of the country. Utilities, transportation, and health insurance further drive up monthly bills, especially in densely populated regions. 

Auto-related expenses, including insurance, also rank above average, reflecting the higher costs associated with city living. While New York offers unmatched culture and career opportunities, these expenses make budgeting a priority for residents.

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6. Washington

Washington comes in 6th with a Standard COBI of 124, placing it 24% above the national average. Residents spend approximately $2,644 per month, supported by an income of $95,033. 

Housing costs are the biggest expense, with mortgage payments and rent accounting for a significant share of household budgets. Utilities, mobile plans, and health insurance premiums also contribute to the higher bills in this state. 

Auto loans and insurance rates further add to the cost of living, reflecting the state’s growing population and infrastructure demands. Washington’s natural beauty and booming economy continue to attract people, despite the financial challenges.

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5. Maryland

Maryland ranks 5th with a Standard COBI of 126, standing 26% higher than the national average. Monthly expenses average $2,676, backed by an income of $101,920. Housing costs dominate household budgets, with mortgages and rent ranking above average. 

Health insurance premiums and utilities also push bills higher, adding to the financial strain for many families. Auto-related costs, including loans and insurance, remain elevated due to urban commuting patterns. 

While Maryland offers proximity to major job markets, its high costs make careful financial planning essential for many residents.

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4. New Jersey

New Jersey takes 4th place with a Standard COBI of 132, standing 32% above the national average. Households spend about $2,802 per month, supported by an income of $104,132. 

Housing costs are a major factor, with rent and mortgage payments far exceeding national levels. Utilities, auto insurance, and health-related expenses further contribute to the higher bills residents face. 

Commuting costs, including fuel and tolls, also add to monthly budgets. While New Jersey’s location offers access to major cities, its high living expenses remain a challenge for many households.

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3. Massachusetts

Massachusetts ranks 3rd with a Standard COBI of 133, which is 33% higher than the national average. Residents spend about $2,817 each month, supported by an income of $102,709. Housing costs, including rent and mortgage payments, lead expenses in this state. 

Health insurance premiums and utilities also push bills higher, reflecting regional market trends. Auto loans and insurance remain costly, particularly in urban areas. 

Despite these expenses, Massachusetts continues to attract residents due to its schools, job market, and cultural amenities.

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2. California

California ranks 2nd with a Standard COBI of 142, placing it 42% above the national average. Monthly bills average $3,010, supported by an income of $99,201. Housing expenses, including both rent and mortgages, dominate household costs and continue to rise. 

Utilities and transportation also play a major role, reflecting the state’s size and infrastructure demands. Health insurance premiums and auto-related expenses add to the financial strain. 

While California’s appeal lies in its climate and economic opportunities, managing these higher costs remains a challenge for many residents.

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1. Hawaii

Hawaii tops the list with a Standard COBI of 145, which is 45% above the national average. Households spend approximately $3,091 per month, supported by an income of $95,409. Housing costs are the highest in the nation, driven by limited space and strong demand. 

Utilities, groceries, and transportation also rank above average due to the state’s remote location. Health insurance premiums and imported goods further contribute to expenses. 

While Hawaii offers stunning landscapes and a unique lifestyle, these higher costs highlight the price of island living.

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Final Thoughts

Living costs vary widely across the United States, with some states facing significantly higher expenses than others. Housing, utilities, and insurance often drive up monthly bills, making budgeting a key priority for many households. 

The report highlights these differences, showing how each state compares to the national average. While high-cost states offer unique benefits, managing expenses in these areas can be challenging. 

What do you think about the rankings? Share your thoughts in the comments!

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AI was used for light editing, formatting, and readability. But a human (me!) wrote and edited this.