Utility Bills 101: Utilities Tips, Average Costs, Fees, and More

If you just moved or are planning a move, it’s important to plan your monthly budget around utility bills. In the US, residents should plan to spend at least $328.03 per month on essential utilities like electricity, natural gas, water, and sewer. Depending on where you live and your container size, you should also budget $25–$100 for trash and garbage collection. Additional utilities include internet ($36), phone ($114), and streaming services ($59).

Of course, climate and energy costs vary from one state to another, so utility bills do too. We looked into the average utility costs in individual states to see just how much they vary. Keep reading to learn more about monthly utility costs and get money-saving tips.

In this article:

• Average utility costs in the US
• Average utility costs by state
• How to save money on utility bills
• How to save energy
• Average utility costs by service
• Full data set: Ranking table of utility costs by state
• Methodology

US average monthly utility bill cost: $562-$637

Now that we’ve discussed the national averages for utility expenses and ideas for how to save money on your utility bill, let’s talk about how much utilities cost per month in different states.

The year before last, New Mexico was number one on our list for the lowest utility costs in the US, and has risen back to the #1 spot again this year. With some of the largest oil and gas reserves in the nation, combined with increased investments in renewable electricity generation and energy efficiency initiatives over the past few years, New Mexico has been able to keep energy prices relatively low. 

Wisconsin residents enjoy one of the lowest average natural gas price of any state this year, with 70% of residents using natural gas to heat their homes.  In addition, Wisconsin benefitted from an average 21% reduction in home heating costs in the Midwest for 2023-24.

Minnesota spends about 2% less on electricity compared to the national average, but that may change next year if Minnesota regulators approve Minnesota Power's request to increase electric rates by 12% in 2024. 

The most populous state in the Midwest's average utility prices have come down year over year, moving them up to #4 in the nation for least expensive utilities in 2023, compared to #10 in 2022. Fun fact: about 95% of Illinois households use electric air conditioning, but only one in six Illinois households rely on electricity for home heating. (Almost 8 in 10 Illinois households use natural gas for heating).²⁹ The Land of Lincoln also enjoys a low cost of living, among other things.

Vermonters pay an average of $77 less than the national average in utility bills, due largely to their affordable electricity ($113.21), water ($18) sewer ($33), and internet ($25) costs, which are well below the national averages. Due partially to their small population, Vermont also has the lowest energy consumption in the country, so that helps keep costs down too.

While Hawaii is known for its incredible beaches and laid-back lifestyles, it costs the average islander a pretty penny to live there and afford utilities, food, and housing. Hawaii has the highest electricity price, nearly triple the US average rate, and the state relies on imported petroleum for 60% of its electricity generation.²⁹ 

We’re sorry, West Virginia, but we’ve saved a spot for you as the runner-up on our most expensive utilities list. While well below the high prices for electricity and gas in Hawaii, West Virginians have the highest average water bill in the country at $91, well above the national average of $39.16. One reason for the increase this year was due to an increase in the Distribution System Improvement Charge (DSIC), which is supposed to go toward improving infrastructure and water quality.

While last year Missouri ranked in the middle of the pack for utility costs, with below-average monthly utility costs, they shot up to #3 most expensive in the country in 2023, with above-average prices for natural gas, sewer and internet services.

Georgia continues to have some of the highest average electric ($151.25), natural gas ($119.30), and streaming service ($62) bills in the country, staying at #4 most expensive in the country this year. Luckily though, Georgians enjoy a lower cost of living, which is, on average, 50.38% lower than the national average.

Alabama’s hot summers account for some of the highest electricity bills in the country, where 7 out 10 Alabama residents rely on electric energy to power their homes.²⁹ While Alabama took the eleventh spot on our list last year, it's moved up to #5, meaning costs have risen; namely electricity ($167.80, which is a 16.5% increase year over year).

Before we get into more depth about utilities and how much they cost, here’s a handful of ways to save money on your utility bills every month:

• Call around and shop providers to get the best price.
• Adjust your thermostat or get a smart thermostat.
• Research and compare affordable home insurance options.
• Swap out your light bulbs with energy-efficient replacements.
• Build credit by paying for utility bills.
• Unplug electronics you’re not using.
• Get solar panels for your house.
• Replace your water heater if it’s more than 10 years old.
• Replace your home’s air filters once a month to every 3 months.
• Address leaks in your home.
• Get an energy audit or HVAC maintenance checkup.
• Wash your clothes in cold water.
• Replace old appliances.
• Thrift, rent, donate, and reuse items.

• Heating and cooling
• Electricity
• Natural gas
• Water
• Trash
• Internet

While this energy saver guide goes into more detail about specific ways to save on your heating and cooling costs, we wanted to summarize some top takeaways and provide more context here:

Properly insulating your home reduces the heat flow through the parts of the home that separate the interior from the outside. Consider adding insulation between the indoors and outdoors to reduce energy and save money.

You can save up to 10% per year on heating and cooling by turning your thermostat down 7°–10°F for 8 hours a day in the fall and winter.³

In 2021, about 40% of U.S. homes had smart thermostats.⁵ It is worth noting that homeowners should work with thermostat providers to better understand how to program their thermostats for maximum efficiency and with their utilities to stagger scheduling to avoid overwhelming the electrical grid, according to recent findings.

Solar panels can save you money on your electric bill and increase the value of your home. You can actually see for yourself how much money going solar can save you using Google’s Project Sunroof tool. Use a site like Solar Power Authority to find solar companies in your area and compare prices from local solar panel installation experts.

Aside from installing energy-efficient, cost-effective systems like solar or geothermal, here are some quick, affordable routes to conserve electricity that your household generates:

Aside from fitting your home with one of the smart thermostats we recommended earlier, the best way to save on your natural gas bill is to regularly replace your air filters and perform annual furnace maintenance.

Outdoor condenser coils get dirty over time, so it’s important to remove any dirt or debris that collects. Clean the coils, remove debris, and trim the foliage back at least two feet to allow for adequate airflow.

Think of your HVAC system as a car. If you wait too long to service your car for regular maintenance, you could be looking at hefty repairs down the road. While it costs from $5,000 to $10,000 to install a new HVAC system, it costs around $75 and $200 per year to ensure the existing appliance is running smoothly.¹¹ Consider getting an annual HVAC maintenance checkup to make sure your systems are efficient and saving you money and headaches in the future.

If you’re looking to combat water costs, pay special attention to appliances that use more water than others and identify what is necessary for water use.

This age-old water-saving tip may not sound like much, but apparently, turning off the tap while brushing your teeth can save eight gallons of water per day.¹²

It's best to water lawns and landscapes early in the morning and when the sun goes down in the evening. Watering during this time prevents evaporation during the hottest parts of the day. Other watering tips:

• Use native plants or plants that don’t need a lot of water.
• Plant turf grass only in recreation areas.
• Organize your landscape into hydrozones with a different watering schedule for each.

The best way to reduce what you spend on trash collection is to reduce your waste. Here are some tips on how to reduce your trash:

Similar to paying for channels you don’t watch, it’s possible you could be paying for internet you don’t use. If that’s you, consider reducing your internet speed or lowering your data usage. According to Reviews.org, other ways to save on your internet bill include:

• Buy your own modem and router.
• Bundle internet and TV.
• Shop around and compare prices.
• Cancel your cell phone data plan.
• Negotiate your bill.
• Ask for discounts.
• See if you qualify for subsidies.

The best way to save money on your cell phone bill is to keep an eye on each mobile carrier’s promotions. You’ll often see promotions advertising discounted prices on phone plans (and even new smartphones) if you add an extra line to your plan or switch carriers.

If you aren’t concerned about using a lot of mobile data each month, a prepaid mobile plan may be right for you. Prepaid plans are often less expensive than standard postpaid plans, and many of the major mobile carriers have prepaid plan options to choose from.

According to the US Energy Information Administration, the average cost of energy in US households was about $117.46 a month in 2020¹—with nearly half of that money going to heating and cooling (which has gone up since then). The average cost of natural gas to power homes in US households was about $90.62 a month in 2022.

While your energy source determines the energy cost you pay, your bill also depends on inflation, geopolitics, and how much energy you conserve. Here are some other important factors to consider:

• Location. Where you live and the climate you exist in play a significant role in heating and cooling costs.
• Home size. Heating and cooling a small apartment with modern windows and proper insulation costs less than heating and cooling an older, larger home.
• Age of appliances. Old systems and appliances are one of the largest contributors to higher energy consumption.²

In the past, having good standing with your utility providers and paying all your bills on time hasn’t really mattered in regards to your credit score. Some residents—particularly those with limited or fair credit—benefit from having their utility payment history attached to their financial footprint because it can help give them the leg up they need in the home buying process or even in making upgrades to their home.

In 2019, Experian created a free tool called Experian Boost, which connects your utility bills to your checking or savings account (with your permission) and gives you credit for making on-time utility bill payments. With Experian Boost, you can improve your credit score and build a credit history by connecting utility, telecom, and even Netflix bills you pay every month. Learn more about the service or register for your free credit score report. 

The average monthly electric bill in the US is $135.25. In 2021, the average price per kilowatt-hour (kWh—the unit of measurement for electricity) for the residential US was 11.8 cents.⁶

It may come as no surprise that running an electric clothes dryer uses more kWh than charging your mobile phone or using other small electronics. Silicon Valley Power (a municipal utility provider in California) breaks down energy use by appliance.⁷

The average monthly cost of natural gas to power homes in US households was about $90.62 a month in 2022, though natural gas costs more in some states than others.

Reading your natural gas bill may feel like reading a science report, so let’s get down to the most important acronym, BTU. It’s short for British Thermal Unit, a unit of energy. Your bill isn’t based strictly on BTUs. You may also see some other items on your gas bill—such as taxes. Check with your local provider for details to see what’s included in your bill.

The average American water bill is $39.16 per month in 2022, which is actually lower than the previous year. Americans use an average of 82 gallons of water a day at home.¹² The best way to see how much water you’re using is to look at the breakdown of charges on your water bill. Here is a guide on how to decipher what each of those charges on your water bill means.

America’s water bills have been on the rise for a while. A study in 2019 found that low-income households must now spend an average of 12.4% of their disposable income and/or work 10.1 hours at minimum wage to pay for basic monthly water and sewer services.¹³

Aside from growing concern over high water bills, water conservation is also an especially timely topic in the US. With droughts and heat waves impacting regions across the US, homeowners are especially interested in ways to save water in states like California, Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming.

The average US sewer bill is $63.00 a month. The reason it ranges depends on your water and wastewater utilities and the source of your water.

An estimated 283 million people rely on public-supply water for their household use.¹⁵ Homeowners pay a monthly bill that covers the cost of the water and draining that water into the public sewer.

Depending on where you live, you may be billed for water usage and wastewater treatment separately. Sometimes you’ll even see water, sewage, and trash all on the same bill with one monthly fee.

Homeowners who rely on well and septic systems (15% of the US population),¹⁶ however, pay for the well and septic to be drilled, inspected, maintained, and, in the case of septic, emptied regularly. This means they don’t get a monthly water or sewer bill.

According to recent findings from a Bluefield Research that surveyed 50 utilities in the US, combined household water and wastewater bills have increased an average of 4.2% per year over the past 9 years.¹⁷ The study also found that utilities are trying to balance water affordability with the cost of operating water and wastewater systems by using tiered pricing to make water use less costly.

Ways to save on sewer charges:

• Do larger loads of laundry less often. Try designating one laundry day a week and throwing every single dirty item into the wash. Washing a full load of laundry is the most cost-effective way to save on water costs. Reducing your total number of loads each year by 25% could save 3,227 gallons of water.¹⁸
• Wash clothes in cold water. Simply, hot water requires more energy. It might not seem like much, but washing your clothes in cold water could save you $60 a year.¹⁹
• Run the dishwasher when it’s full. Reduce wastewater by queuing up the dishwasher only when you’ve placed every dish and utensil you can possibly fit into it without overloading.

The average homeowner typically pays between $25 to $100 per month for residential trash and garbage collection services, depending on the location and size of the container.²⁰

One of the easiest ways to get rid of belongings in your home is to reach out to a junk removal company, which donates and recycles things like furniture and appliances that may be of use to others. For information on junk removal options and costs, check out our article on the average cost of junk removal.

You can also donate items to various charities for reuse.

Roughly half of Americans have access to curbside recycling, and those that do are charged about $4 per month for the service.²¹

The national recycling rate is 34.7%.²² Recycling varies by city, county, and state, and there’s long been an overemphasis on consumers’ responsibility to recycle, though the process is anything but simple. Only 9% of plastic is recycled.²³ Not to mention that the recycling industry has dramatically declined since the plastic import halt in 2018.

Many communities choose landfills over recycling for cost, convenience, and environmental reasons (while recycling has a lower carbon footprint and greenhouse gas emissions than landfills and burning, energy and resources still vary by recycled material).

Here are some things you can recycle:²⁴

• Clean and dry PET plastic bottles (the bottles labeled number 1 that water and soda are usually sold in) and HDPE milk jugs
• Aluminum and steel cans
• Paper, newspaper, and magazines
• Glass bottles and containers
• Flattened cardboard and paperboard (clean and without liners)

The average internet bill is around $36 per month, down from last year. The monthly cost of your internet will vary widely based on connection type and speed. Slow dial-up connections cost as little as $10 per month, but the fastest fiber optic connections can cost up to $150 each month.²⁵

The average phone bill in the US is $114,²⁶ but you can expect to pay as little as $60 for a single line per month to $240 per month for a family of four.²⁷

Nearly half of Americans think they are paying too much for cell phone service, and 73% worry that phone rates will rise, according to a recent WhistleOut survey. So, you’re not alone if you think your phone bill is too high.

The average cost Americans pay for streaming services is $59, up about $10 from last year.

There are over 100 streaming TV services available, from on-demand streaming (Netflix, Hulu, and Prime Video) to TV streaming platforms (Hulu + Live TV, Sling TV, and YouTube TV) to network-owned streaming apps (HBO Max, ESPN+, and Peacock).

To learn more about what to look for in a streaming service, what you’ll pay, and what are the best providers out there, take a look at this article on the best streaming services. And if you’re looking for ways to save on your streaming costs, check out these 10 helpful tips.

While streaming accounts for nearly 33.7% of total television consumption,²⁸ according to Reviews.org³², nearly 54% of Americans are still paying for cable television (roughly $87 a month), often in addition to their streaming service bills. 

For energy bill costs, we pulled the average electricity price from Energybot.

For natural gas bill costs, we pulled the average rate per 1,000 cubic feet for 2021 from the U.S. Energy Information Administration³¹ and assumed each household used 168 cubic feet a day.

We used WiseVoter³³ and RentCafe¹⁷ to pull the average monthly household water and wastewater bill for each state.

Our data about the average cost of streaming services come from a survey conducted by Reviews.org³². taken in 2022 and applied a 23% increase for 2023 as reported by Variety.

The sum of these utilities makes up our averages for each state’s total utility costs per month. States were ranked solely based on how much these utilities cost their residents each month on average. Other factors were not considered for our rankings.

While we included trash collection²⁰ in the estimated US total average, we did not use it in our state rankings.

Joe Roberts contributed to this article.