The 20 States That Will Cost You the Most to Live In

Managing household bills is a big part of daily life, and costs can change a lot depending on where you live. On average, U.S. households spend $25,513 a year on essential bills.

These costs include things like housing, utilities, and insurance, which can add up fast and affect monthly budgets. In some states, these bills are much higher than the national average, creating money challenges for many families.

To show these differences, we’re using the 2024 Cost of Bills Index Report (COBI) by doxo. This report uses data from across the country and looks at the ten most common household bills.

The categories include utilities, cable and phone, mobile plans, auto loans, auto and life insurance, health insurance, alarm and security systems, rent, and mortgage payments. The index gives a clear way to compare what people pay in different states.

This article lists the 20 states with the highest cost of living. Each state’s average income, monthly bills, and how much higher they are than the national average are included to give a full picture of costs.

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% higher than the national average. Households here spend about $2,204 per month on essential bills. The average household income is $82,621, slightly above the national median.

Housing and utilities make up the biggest part of these costs, but auto loans and insurance also add to the higher expenses. Many residents find it challenging to manage mortgages and rent, which helps explain the state’s ranking.

Even with higher costs, Illinois still attracts families and businesses because of its strong economy and busy cities.

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.

18. Minnesota

Minnesota ranks 18th with a Standard COBI of 104, which is 4% higher than the national average. Residents spend around $2,216 per month on household bills, with an average income of $86,752.

Higher costs for utilities, health insurance, and mortgage payments increase expenses across the state. Auto loans and insurance also add to monthly money pressures, especially in cities.

With its mix of city life and rural areas, Minnesota balances cost concerns with a strong economy and good quality of life. Still, these bills make careful budgeting important for many households.

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.

16. Nevada

Nevada ranks 16th with a Standard COBI of 107, which is 7% above the national average. Residents spend around $2,279 per month on bills, with an average income of $74,674.

High housing costs are a main reason for higher expenses, as rent and mortgage prices keep rising. Utilities and auto insurance also take up a big part of household budgets.

Many residents face extra costs due to the state’s growing population and busy real estate market. Still, Nevada’s tax benefits and entertainment options make it attractive to many people.

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.

14. Oregon

Oregon ranks 14th with a Standard COBI of 111, which is 11% above the national average. Households spend about $2,363 per month, with average incomes of $79,189. Housing costs are the biggest factor, as rent and mortgage rates are higher than the national average.

Utilities, mobile plans, and auto insurance also add to expenses. Many residents pay more for health insurance, which affects overall affordability. Oregon’s natural beauty and cities make it appealing, but the cost of living can stretch household budgets.

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 ranks 12th with a Standard COBI of 113, which is 13% above the national average. Households spend about $2,410 per month on bills, with an average income of $86,140.

Remote locations raise costs for utilities and transportation, making these some of the most expensive items. Health insurance and car expenses also add to the financial load, due to higher costs of vehicles and medical care in less populated areas.

Housing costs, including rent and mortgages, make expenses even higher. Even with its stunning landscapes, Alaska’s higher bills show the challenges of living in a remote state.

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.

10. New Hampshire

New Hampshire ranks 10th with a Standard COBI of 117, which is 17% above the national average. The average household spends about $2,482 per month, with an income of $92,699.

Mortgage and rent make up a big part of costs, driven by high housing demand in the area. Health insurance and utility bills also raise monthly expenses, adding pressure to budgets.

Auto loans and insurance add to costs, especially for people who commute to work. While New Hampshire’s scenic views and good schools attract families, the high cost of living means careful money planning is needed.

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.

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.

7. New York

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

Housing is the biggest cost, especially in cities where rent and mortgage rates are higher than most of the country. Utilities, transportation, and health insurance also raise monthly bills, particularly in crowded areas.

Car expenses, including insurance, are also above average, reflecting the high costs of city living. While New York offers great culture and job opportunities, these costs make careful budgeting important for residents.

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.

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 ranks 4th with a Standard COBI of 132, which is 32% above the national average. Households spend around $2,802 per month, with an average income of $104,132.

Housing is a big part of costs, as rent and mortgage payments are much higher than the national average. Utilities, car insurance, and health expenses also add to monthly bills.

Commuting costs, including gas and tolls, further increase budgets. While New Jersey’s location gives access to major cities, the high cost of living is a challenge for many households.

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.

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.

1. Hawaii

Hawaii tops the list with a Standard COBI of 145, which is 45% above the national average. Households spend around $3,091 per month, with an average income of $95,409. Housing is the most expensive in the country, due to limited space and high demand.

Utilities, groceries, and transportation also cost more because of the state’s remote location. Health insurance and imported goods add even more to monthly expenses.

While Hawaii offers beautiful landscapes and a unique lifestyle, these high costs show the price of living on the islands.

Final Thoughts

Living costs are very different across the United States, with some states much more expensive than others. Housing, utilities, and insurance often make up the biggest part of monthly bills, so careful budgeting is important for many households.

The report shows these differences and how each state compares to the national average. While expensive states offer special benefits, keeping costs under control can be tough.

What do you think about these 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.