Nearly nine in 10 U.S. households pay a mobile phone bill, making it one of the nation's most common recurring household expenses.
The median bill is $100 a month, or $1,200 a year, according to a new analysis of actual consumer payments.
Where you live can make a big difference: median annual bills top $1,600 in Delaware, while consumers in some large cities pay considerably more.
Americans may spend a lot of time looking at their phones, but a new report suggests they should also spend some time looking at their phone bills.
U.S. households that pay for mobile phone service face a median bill of $100 a month, or $1,200 a year, according to the 2026 doxoINSIGHTS U.S. Mobile Phone Report. About 88% of households have a mobile phone bill, putting the total U.S. market at an estimated $172 billion annually.
That makes mobile phone service the second-most common household bill, according to doxo. Electricity ranks first, reaching about 90% of households. Mobile phone bills are more widespread than cable and satellite service, water and sewer bills, and natural gas bills.
The findings are based on actual bill payment activity covering 97% of U.S. ZIP codes. Doxo says its broader database draws on payments from more than 10 million consumers to more than 120,000 billers.
Some households pay a lot more
While the national median is $1,200 a year, the amount varies considerably depending on where consumers live.
Delaware has the highest median annual mobile phone bill among the states at $1,630, according to the report. Montana follows at $1,545, Alaska at $1,500, Kentucky at $1,434 and New Jersey at $1,361.
Differences are even more striking when looking at individual cities.
Among large cities, San Diego has the highest median annual bill at $2,035, followed by Memphis at $1,976 and Rochester, N.Y., at $1,881. Birmingham, Ala., has a median annual bill of $1,658, while Philadelphia comes in at $1,543.
The figures don't necessarily mean wireless carriers charge higher rates simply because customers live in those locations. Household bills can vary based on the number of phone lines, devices being financed, plan choices and other services included on the account.
An expense worth reviewing
Cellphones have evolved from a convenience into something most consumers consider essential. About 98% of U.S. adults own a cellphone and 91% own a smartphone, according to Pew Research Center.
That may also make the monthly bill easier to overlook.
“Our phones have become essential to how we work, navigate, organize and interact,” doxo CEO Steve Shivers said in announcing the findings, adding that the phone bill has increasingly become a basic household expense.
Consumers looking to reduce that expense may have more options than they realize. The wireless industry says nearly nine in 10 Americans have a choice of at least three mobile providers, and the market includes major carriers as well as numerous lower-cost prepaid companies and mobile virtual network operators.
Cable companies are also becoming increasingly important competitors. Doxo noted that Xfinity Mobile and Spectrum Mobile added a combined 854,000 lines during the second quarter.
For consumers, that competition provides a reason to periodically review a bill that may have been on autopay for years. Check whether you're paying for unused lines, unnecessary insurance or add-ons, and compare your current plan with prepaid and lower-cost alternatives.
Saving even $25 a month would put $300 a year back into a household budget — making the cellphone bill one recurring expense that may be worth a second look.