U.S. households with utility bills pay a median of $363 a month, or $4,361 a year, according to a new doxo report.
The typical annual utility bill increased 4.63% from last year, with electricity costs rising the most — 6.46%.
Maryland is the most expensive state for combined utilities, while New York has the highest costs among the large cities studied.
American households are spending a median of $4,361 a year on essential utilities as electricity, natural gas, and other household services become more expensive, according to a new report from bill-payment company doxo.
The company’s 2026 U.S. Utilities Market Size and Household Spending Report found that households with utility bills pay a median of $363 per month. That is a 4.63% increase from last year and represents approximately 5% of annual household income.
Combined, Americans spend an estimated $582 billion annually on electricity, natural gas, water and sewer service, and waste and recycling collection.
The findings are based on a statistical analysis of payments made by more than 10 million consumers across more than 97% of U.S. ZIP codes. Doxo analyzed actual payments to confirmed service providers rather than relying exclusively on consumer estimates.
Electricity bills posted the largest increase
Electricity was the largest of the four utility categories, accounting for an estimated $234 billion in annual household spending.
About 90% of U.S. households pay an electricity bill directly. Among those households, the median bill is $128 per month, or $1,533 annually — a 6.46% increase from the previous year.
Doxo attributed the increase partly to rising electricity demand, modernization of the power grid, and changes in fuel markets. Artificial intelligence data centers and other energy-intensive technologies have also raised concerns about future pressure on the nation’s electricity system.
Natural gas costs increased by 5.63%, reaching a median of $75 per month, or $900 per year. About 67% of households pay a gas bill, producing a total market of approximately $128 billion annually.
Water and sewer bills increased 2.8% to a median of $89 per month, or $1,065 annually. About 72% of households pay those bills directly.
Waste and recycling costs increased 2.74%, reaching a median of $72 per month, or $863 annually. Just over half of U.S. households pay those charges directly.
The individual category totals should not simply be added together to estimate every family’s expenses. Not all households pay every utility directly; some services may be included in rent, association fees, or municipal taxes.
Maryland has the highest utility costs
The report ranked Maryland as the most expensive state, with a combined median utility cost of $625 per month. The state’s median water and sewer bill alone was $245 a month, significantly higher than in most other states on the list.
Connecticut ranked second at $510 per month, followed closely by Massachusetts at $509.
The 10 states with the highest combined monthly utility costs were:
Maryland — $625
Connecticut — $510
Massachusetts — $509
Vermont — $488
Alaska — $481
Wisconsin — $480
Hawaii — $473
Washington — $473
New Jersey — $464
Rhode Island — $451
Hawaii had the highest median electricity bill among the 10 most expensive states, at $200 per month. Alaska had the highest gas bill, at $150, while Maryland had the highest waste and recycling and water and sewer costs.
New York tops the large-city rankings
Among the 50 largest U.S. cities, New York was the most expensive, with combined median utility bills of $805 per month. Doxo reported a particularly high median waste and recycling cost of $392.
San Jose ranked second at $602 per month, followed by Milwaukee at $579, and Cincinnati at $567. Cincinnati had the highest median natural gas cost among the cities listed, at $289 a month.
Other cities in the top 10 were Memphis, Baltimore, Dallas, Seattle, Rochester, and Detroit.
“American families are navigating a perfect storm of rising utility costs,” doxo co-founder and CEO Steve Shivers said. He pointed to infrastructure changes and increasing energy demand as factors causing more costs to be passed on to consumers.
Because utility rates vary sharply by location, housing type, and service provider, consumers may have limited opportunities to shop for lower prices. However, households can reduce costs by reviewing bills for errors, checking eligibility for energy-assistance or budget-billing programs, improving home efficiency, and asking local providers about free energy audits or conservation rebates.