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 for electricity, gas, water, internet, and cable. In the US, people who rent apartments should plan to spend at least $240 per month for utilities,¹ and we’ve found that homeowners should budget closer to $400 a month.

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 by location. Keep reading to learn more about monthly utility costs and what you should be spending—and to get money-saving tips.

Electricity: $114.44
Natural gas: $63.34
Water: $70.93
Streaming services: $47.43
Broadband internet: $60
Trash/recycling: $14.03²

Total cost: $370.16

According to the US Energy Information Administration, the average cost of energy in US households is about $115.49 a month in 2019³—with nearly half of that money going to heating and cooling.⁴

This might seem like a small fortune, but luckily there are ways to reduce your energy bill. It all depends on where you live, the size of your house or apartment, and (most importantly) whether you make smart decisions about conserving energy.

Let’s start with size. Heating and cooling a small apartment with modern windows and proper insulation costs less than heating and cooling a large home.

According to the US Census Bureau, the median size for multifamily apartment units is 1,057 square feet, and today’s new homes have an average of 2,301 square feet of space.⁵ This is more than double the living space per person compared to homes in 1973.⁶

Coupled with greater energy efficiency than their earlier counterparts, however, new homes are going to be less expensive per square foot to heat and cool than in previous decades.⁷

The US Department of Energy offers tips for saving energy and therefore money, but there’s one tip that jumps out to us above the rest—keep an eye on your thermostat.

Switching from a conventional thermostat to an energy-efficient smart thermostat can save you up to 12% on heating and 15% on cooling.⁸

Over time, smart thermostats adapt to your temperature preferences and automatically adjust their settings to keep you comfortable when you’re home and save energy while you’re away.

If replacing your thermostat seems daunting and you're looking for an easier fix, then swapping out your old curtains and hanging insulated curtains over your windows is another great option.

The average monthly electricity bill in the US is $114.44.

If your average electric bill seems higher than ever before, that’s because it is! In 2020, the average price per kilowatt-hour (kWh—the unit of measurement for electricity) for the residential US trended higher than ever, according to the US Energy Information Administration. At the start of 2001, the price of electricity was only about 7 cents per kWh while in 2020, it was always higher than 12 cents per kWh.⁹

How does that translate to your monthly utility bills? It depends on where you live. Some states fare better than others—Utah is the most affordable state to power your home in, while Hawaii is the least.

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, basing energy use on 13 cents per kWh and average conditions.¹⁰

The two fastest ways to trim your power bill are to invest in energy-efficient lightbulbs and unplug electronics and appliances when they’re not in use.

Replacing your old incandescent lightbulbs with energy-efficient alternatives can save you $75 per year,¹¹ while unplugging your appliances and electronics when not in use can save you over $100 per year.¹²

Solar panels are another option that could 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.

The final tip for saving money on your power bill is to replace your water heater. Most water heaters use either a natural gas flame or electricity to heat water. Unfortunately, electric water heaters typically cost more to operate than gas-powered options,¹³ which can increase your power bill. Find out if your water heater is electric, and if it is, replace it with a gas one to save on your monthly bills.

The benefits of energy-efficient lightbulbs are pretty straightforward, but investing in a smart power strip can save you the hassle of unplugging individual electronics or appliances when not in use.

The average monthly gas bill in the US is $63.34, though natural gas costs more in some states than others.

Natural gas is used to warm your house, to keep the hot water running, and, in many instances, to cook.

Reading your 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.

The average US household consumed 71.2 million BTUs of gas in 2019, costing $712 over the course of the year.¹⁴ Don’t let that number fool you though. Depending on where you live, you may end up paying a higher price for your natural gas.

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.

If you live in Alaska or Maine, chances are you’ll be paying more for gas than the rest of us. Residents of New Mexico, Nevada, and Idaho, however, don’t pay nearly as much for their gas.

If you’re curious about where your state falls, go check out our chart below where we break down the average utility costs in different states.

We understand that most people aren’t willing to move to Idaho just to save a few bucks on their gas bill, so we have a couple of other ideas for saving money.

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

A dirty air filter can slow down air flow through your furnace, causing it to work harder to heat your home. Neglecting annual maintenance can also cause key furnace components to operate inefficiently.

In the end, the harder your furnace has to work to do its job, the higher your gas bill will be at the end of the month.

ENERGY STAR even recommends checking your air filter monthly during the summer and winter seasons to ensure your furnace is running as efficiently as possible.¹⁵

However, it’s easy to forget when to replace your filter. That’s why a subscription service like Second Nature or Amazon Subscribe & Save is the way to go. You simply select how many filters you need, specify their sizes, and set how often you’d like your filters delivered.

The average American water bill is $70.93 per month.

The Environmental Protection Agency (EPA) estimates the average American family uses 300 gallons of water per day.¹⁶ To put that number into perspective, that’s enough water to fill a six-person hot tub.

The price of water is on the rise too. In fact, it rose 41% between 2010 and 2015, and sewer prices and fees rose even more dramatically during that time.¹⁷ The rate of increase has slowed since 2015, but prices do continue to climb.

Combating rising water costs is simple; you just have to use less water. As you go about your day, pay attention to every time you use water. While you shouldn’t decrease how much water you drink, take stock of every other way you use water and see if you can use a little less each time while still getting what you need.

Turning off your faucet while brushing your teeth is one easy way to cut back on your water usage. According to this commercial from Colgate, you waste approximately four gallons of water every time you leave the faucet running when you brush your pearly whites.

Another way to save water is to take shorter showers. On average, showers in the US last around eight minutes, which uses up over 15.8 gallons of water per shower.¹⁸ By cutting your shower time back to five minutes, you can save several gallons every time you wash up.

Small changes like these can make a big difference over time.

In the old days, “hooking up the TV” meant plugging it into the wall and adding a wire coat hanger as an antenna. Back then, television was essentially free.

Today, cable prices are all over the map, and most are not regulated by the FCC.¹⁹ You can watch basic channels for free using a digital antenna, but full cable subscriptions cost around $85 a month on average.²⁰

If it’s been a minute since you’ve looked at your usage closely, consider reevaluating your cable bill to see if you can drop to a lower package. If you’re not watching the channels, no need to pay extra for them.

You can often bundle internet and cable into one bill, saving money on both utilities. If you’d rather not bundle your cable and internet, however, check with providers near you to see if there are any promotions you can take advantage of.

You can also save money by foregoing cable altogether and opting for a subscription service like Netflix, Hulu, or Disney+. Keep in mind, though, that if you want to watch all the hot new shows people talk about around the coffee machine, you’ll have to get multiple subscriptions, which can end up costing just as much as cable services.

You’ll find a wide range of plans whether you choose DIRECTV, AT&T U-Verse, DISH, or another TV service. Take a look at the top options to see which best matches your cable needs and your budget.

The average internet bill is around $60 per month.²¹

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.²²

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.

And as you may know, most internet service providers charge a small monthly fee to rent a modem and router. Buying your own modem and router can help you save big in the long run.

Shop around to find the best internet deal for you

Finding a trustworthy internet service provider—especially if you’ve just moved—takes a big load off. See who we recommend for internet services by reading our list of the best internet providers.

According to the Pew Research Center, 97% of American adults own a mobile phone.²³ The major cellphone carriers are constantly changing their prices to compete with one another, but you can expect to pay anywhere from $120 to $240 per month for a family of four.²⁴

The best way to save money on your cellphone 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.

The average American generates about 4.5 pounds of trash every day²⁵ and, lucky for you, your garbage bill—on average between $25 and $100 per month²⁶—ensures you don’t have to drive it to the waste station yourself.

While recycling doesn’t typically show up as a line item on your garbage bill, Americans with curbside recycling are being charged about $4 per month for the service.²⁷

Sometimes you’ll even see water, sewage, and trash all on the same bill with one monthly fee.

The best way to save on your monthly garbage bill is to create less garbage. Some cities and private collection services charge per bag, so the fewer bags you use, the less you pay.

If you need to pay a private company to collect your trash, be sure you’re getting the best deal. Shop around with your garbage collector’s competitors to see if you can find a better price elsewhere.

If you’ve got more trash than you can fit in your garbage can, check out our list of the best junk removal companies.

If one of your essential utilities breaks during the COVID-19 pandemic, there are ways you can keep you, your family, and your technician safe. As always, you should follow these CDC guidelines for stopping the spread:

• Wear a mask.
• Ask your technician to wear a mask before they enter your home.
• Wash your hands, and ask the technician to as well.
• Disinfect every surface before your technician arrives and after they leave.
• Stay at least six feet away from your technician at all times.
• Ask your technician if you can pay (and tip) them online or over the phone to avoid handling money.
• If you don’t feel comfortable having a technician in your home, call the repair company and ask if a technician can talk you through the repairs instead of coming to your home.

On average, an individual adult should plan to spend between $268.50 and $315.90 on food every month, while a family of four will probably spend closer to $1,000.³⁰

While food isn’t exactly a utility, there’s still a monthly cost that goes into feeding yourself and your family. When you balance your checkbook, you should consider food costs right along with other monthly expenditures like electricity and water bills.

Your individual food costs will depend on a lot of factors like how often you eat out, household size, where you get your groceries, and any dietary restrictions you have. You should never eat less than you need to just to save money, but you can still spend less on food while getting all you need to eat.

Here are a few tips to help you save money on food every month:

• Cook meals at home more often instead of eating out
• Buy store brand groceries instead of national brands
• Buy produce when it’s in-season
• Stock up during sales
• Save coupons when they come in the mail
• Don’t shop when you’re hungry

Want more ideas on how to save on your grocery bill? Here are some more tips, apps, and worksheets for you to check out.

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

Connecticut didn’t have the most expensive bill for any single utility, but it had close to the most expensive for many of them. The result is that the average Connecticut homeowner pays more for their utilities as a whole than average residents in any other state.

Alaska is known for frequent snowfall and frigid blizzards. Considering the state’s uniquely cold climate, it’s really not surprising that the average natural gas bill in Alaska is $122.83. This means Alaskans pay more for natural gas than anyone else in the country.

As we said earlier, Hawaii’s average electricity bill is the highest in the nation. On average, homeowners in Hawaii pay $168.21 per month for electricity. The only state that comes close is Connecticut at $150.71.

Coming up only nine cents short of Hawaii’s average utility bill is Massachusetts, Connecticut’s neighbor to the north. Massachusetts is the second of five northeastern states to land in our top ten states with the highest utility bills.

Like Connecticut, Rhode Island doesn’t have the highest average bill for any single utility, but each of the bills we checked were among the highest in the US. Who would have thought that the smallest state would have some of the biggest utility prices?

New Hampshire borders Canada, so as you’d expect, it’s pretty darn cold there, which partially explains why New Hampshirites pay more for gas than residents of most other states.

Maine lies directly to the east of New Hampshire, and the state’s average utility costs are just a few dollars short of its neighbor’s. Like the other northeastern states in our top ten, natural gas is one of the biggest contributors to Maine’s high utility costs.

At $144.73 a month, South Carolina’s average electricity bill is one of the highest in the nation. Unlike most of the other states in our top ten, South Carolina has a hot climate that necessitates a lot of AC, which contributes to these hefty bills.

Maryland’s average gas bill is one of the lowest in our top ten. That said, electricity bills in the Old Line State soar about $13 above the national average.

Virginia closes out our list of the ten states with the most expensive utilities. While the state’s monthly utility cost is almost $60 less than Connecticut’s (the most expensive), it’s still over $20 higher than the nationwide average of $356.13.

Utility bills in New Mexico are the cheapest in the nation, so you wouldn’t need to pull a Walter White (à la Breaking Bad) to afford living there. While residents of many states have slightly lower gas bills, none have electricity bills that can rival New Mexico’s for affordability.

Utah’s average utility bills take a close second to New Mexico’s, trailing by less than $20. Keep in mind that Utah experiences droughts from time to time, so water bills in the state may sometimes climb higher than the national average.

At number three on our list, Idaho’s cheap utilities are no small potatoes. The state stays relatively cold year-round, but despite this, the average Idahoan’s monthly gas bill is one of the lowest in the country.

Colorado lies directly east of Utah, and the two states are pretty similar in terms of topography, elevation, and climate. All things considered, it’s not surprising that the average Coloradan’s utility bills are within a few dollars of the average Utahn’s.

Montana holds a significant portion of the famous Rocky Mountains, and like most of the states that the Rockies run through, it made our list of states with the cheapest utility bills.

The West Coast is the best coast, at least that’s what some people say. We’re not here to settle that debate. However, California and Oregon are both in the ten states with the cheapest utility bills, and Washington—the third West Coast state in the contiguous US—is in the cheapest twenty. For comparison, eight of the ten states with the highest utility bills are East Coast states, so the West Coast has cheaper utilities if nothing else.

Did you know that Wisconsin’s climate is perfectly suited for making cheese? Just kidding. We don’t know that. We aren’t cheese experts, but what we do know is that Wisconsin’s low utility bills mean you don’t have to be a big cheese to afford your monthly expenses.

Nevada lies right between two other states that made our cheapest list: California and Utah. It’s also one of several desert states with lower-than-average utility bills.

Wyoming’s climate is characterized by significant fluctuations in temperature that range from hot summers to below-freezing winters. However, Wyoming’s elevation means that it doesn’t get extremely hot very often, so AC doesn’t drive average Wyoming homeowner’s electricity bills through the roof.

Oregon is the last stop on our list of states with the cheapest utilities. While the average Oregonian’s utility bills total almost $50 higher than the average New Mexico resident’s, they’re still more than $20 below the national average. Not too shabby.

For electricity bill costs, we got average electricity consumption figures and pricing information from the US Energy Information Administration.³¹

For natural gas bill costs, we found average gas usage and prices from the American Gas Association.³²

Our average broadband internet pricing information came from Cable.co.³³

To calculate water bill costs, we gathered residential water usage and pricing information from Circle of Blue.³⁴

Our data about the average cost of streaming services came from a survey conducted by Reviews.org.³⁵

The sum of these utilities make 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.

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