Cheapest States for Utility Costs
Monthly utility costs — electricity, natural gas, water, and internet — represent a significant portion of household expenses. Average residential electricity prices alone run from 12.72¢/kWh in Louisiana to 48¢/kWh in Hawaii (EIA, July 2026). Climate, energy sources, and state regulations all play major roles. This guide ranks all 50 states by overall utility affordability.
- Oklahoma ranks #1 with the lowest cost of living at 83.
- Hawaii ranks last at 185.8 — the highest among all states.
- The top 5 states are Oklahoma, Alabama, Iowa, West Virginia, Kansas.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
Top 3 States
All 50 States Ranked
Lowest to highest by cost of living
| # | State | Cost of Living | Median Income | HUD Fair Market Rent (2BR) | Calculator |
|---|---|---|---|---|---|
| 1 | Oklahoma | 83 | $66,148 | $1,141 | Utility Calculator |
| 2 | Alabama | 86 | $66,659 | $1,175 | Utility Calculator |
| 3 | Iowa | 86.1 | $75,501 | $1,125 | Utility Calculator |
| 4 | West Virginia | 87 | $60,798 | $1,040 | Utility Calculator |
| 5 | Kansas | 87.1 | $75,514 | $1,213 | Utility Calculator |
| 6 | Mississippi | 87.4 | $59,127 | $1,095 | Utility Calculator |
| 7 | Missouri | 88.2 | $71,589 | $1,266 | Utility Calculator |
| 8 | Arkansas | 89 | $62,106 | $1,073 | Utility Calculator |
| 9 | Indiana | 89.7 | $71,959 | $1,320 | Utility Calculator |
| 10 | Tennessee | 89.7 | $71,997 | $1,406 | Utility Calculator |
| 11 | Georgia | 90.1 | $79,991 | $1,528 | Utility Calculator |
| 12 | Nebraska | 90.1 | $76,376 | $1,274 | Utility Calculator |
| 13 | New Mexico | 90.2 | $67,816 | $1,292 | Utility Calculator |
| 14 | North Dakota | 90.5 | $77,871 | $1,107 | Utility Calculator |
| 15 | Texas | 90.8 | $79,721 | $1,517 | Utility Calculator |
| 16 | Louisiana | 91.3 | $60,986 | $1,177 | Utility Calculator |
| 17 | Michigan | 92.1 | $72,389 | $1,381 | Utility Calculator |
| 18 | South Carolina | 92.7 | $72,350 | $1,396 | Utility Calculator |
| 19 | Ohio | 93 | $72,212 | $1,294 | Utility Calculator |
| 20 | Minnesota | 93.4 | $87,117 | $1,532 | Utility Calculator |
| 21 | South Dakota | 93.5 | $76,881 | $1,191 | Utility Calculator |
| 22 | Kentucky | 94 | $64,526 | $1,177 | Utility Calculator |
| 23 | Wyoming | 94.4 | $75,532 | $1,107 | Utility Calculator |
| 24 | Illinois | 94.5 | $83,211 | $1,752 | Utility Calculator |
| 25 | Pennsylvania | 95.3 | $77,545 | $1,556 | Utility Calculator |
| 26 | Wisconsin | 95.7 | $77,488 | $1,275 | Utility Calculator |
| 27 | North Carolina | 96.7 | $73,958 | $1,460 | Utility Calculator |
| 28 | Utah | 98.4 | $96,658 | $1,506 | Utility Calculator |
| 29 | Virginia | 99 | $92,090 | $1,791 | Utility Calculator |
| 30 | Idaho | 99.4 | $81,166 | $1,372 | Utility Calculator |
| 31 | Delaware | 100.6 | $87,534 | $1,753 | Utility Calculator |
| 32 | Florida | 100.8 | $77,735 | $2,005 | Utility Calculator |
| 33 | Colorado | 102.7 | $97,113 | $1,944 | Utility Calculator |
| 34 | Connecticut | 103.6 | $96,049 | $2,039 | Utility Calculator |
| 35 | Nevada | 105.4 | $81,134 | $1,686 | Utility Calculator |
| 36 | Montana | 106 | $75,340 | $1,562 | Utility Calculator |
| 37 | New Hampshire | 108.5 | $99,782 | $2,016 | Utility Calculator |
| 38 | Arizona | 108.6 | $81,486 | $1,619 | Utility Calculator |
| 39 | Oregon | 110.4 | $85,220 | $1,710 | Utility Calculator |
| 40 | Rhode Island | 110.9 | $83,504 | $1,917 | Utility Calculator |
| 41 | Maine | 112.9 | $76,442 | $1,755 | Utility Calculator |
| 42 | Vermont | 113.4 | $82,730 | $1,816 | Utility Calculator |
| 43 | Washington | 115.1 | $99,389 | $2,106 | Utility Calculator |
| 44 | Maryland | 118.8 | $102,905 | $2,104 | Utility Calculator |
| 45 | New Jersey | 119.2 | $104,294 | $2,321 | Utility Calculator |
| 46 | Alaska | 124.5 | $95,665 | $1,539 | Utility Calculator |
| 47 | New York | 132.6 | $85,820 | $2,565 | Utility Calculator |
| 48 | California | 140.3 | $100,149 | $2,715 | Utility Calculator |
| 49 | Massachusetts | 148.1 | $104,828 | $2,598 | Utility Calculator |
| 50 | Hawaii | 185.8 | $100,745 | $2,487 | Utility Calculator |
Methodology
How we collected and ranked the data
States are ranked by cost of living index (ascending) as a proxy for overall utility costs: it is the C2ER Cost of Living Index (via MERIC), Q2 2026 (100 = the national average), which includes a utilities component, not a utility-bill measurement. Median household income is the Census Bureau's (ACS 2024) and the rent column is HUD's FY2027 two-bedroom Fair Market Rent. Each state's utility cost calculator estimates an actual bill.
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View all 107 state comparisonsFrequently Asked Questions
Which state has the cheapest electricity?
In EIA's July 2026 residential price data, Louisiana (12.72¢/kWh), Nevada (12.77¢/kWh), Utah (13.12¢/kWh), and North Dakota (13.41¢/kWh) have the lowest average electricity prices.
Why are utility costs so different by state?
Utility costs depend on energy sources (hydropower is cheap, imported oil is expensive), climate (heating and cooling demand), state regulations, infrastructure age, and population density. States with abundant local energy resources tend to have the lowest rates.
What is the average monthly utility bill in the US?
It varies widely by state, home size and season: southern states pay more for cooling and northern states more for heating. The utility cost calculators add electricity, gas, water and internet for your state from EIA prices and your own usage.