Cheapest States for Utility Costs
Monthly utility costs — electricity, natural gas, water, and internet — represent a significant portion of household expenses. Electricity rates alone range from under 10¢/kWh in states like Louisiana to over 30¢/kWh in Hawaii. 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 83.5.
- Hawaii ranks last at 184.8 — the highest among all states.
- The top 5 states are Oklahoma, Alabama, Mississippi, Kansas, West Virginia.
- 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 | Median Rent | Calculator |
|---|---|---|---|---|---|
| 1 | Oklahoma | 83.5 | $66,148 | $1,136 | Utility Calculator |
| 2 | Alabama | 85 | $66,659 | $1,087 | Utility Calculator |
| 3 | Mississippi | 86.2 | $59,127 | $1,041 | Utility Calculator |
| 4 | Kansas | 87.6 | $75,514 | $1,129 | Utility Calculator |
| 5 | West Virginia | 87.9 | $60,798 | $1,000 | Utility Calculator |
| 6 | Indiana | 88.3 | $71,959 | $1,255 | Utility Calculator |
| 7 | Iowa | 88.6 | $75,501 | $1,112 | Utility Calculator |
| 8 | Missouri | 88.6 | $71,589 | $1,154 | Utility Calculator |
| 9 | Tennessee | 88.9 | $71,997 | $1,363 | Utility Calculator |
| 10 | Arkansas | 89.1 | $62,106 | $1,083 | Utility Calculator |
| 11 | New Mexico | 89.9 | $67,816 | $1,308 | Utility Calculator |
| 12 | Georgia | 90.6 | $79,991 | $1,551 | Utility Calculator |
| 13 | North Dakota | 90.7 | $77,871 | $1,088 | Utility Calculator |
| 14 | Texas | 90.7 | $79,721 | $1,557 | Utility Calculator |
| 15 | Louisiana | 91.1 | $60,986 | $1,138 | Utility Calculator |
| 16 | Nebraska | 91.3 | $76,376 | $1,200 | Utility Calculator |
| 17 | South Carolina | 91.9 | $72,350 | $1,352 | Utility Calculator |
| 18 | Kentucky | 92.5 | $64,526 | $1,125 | Utility Calculator |
| 19 | Minnesota | 93.4 | $87,117 | $1,504 | Utility Calculator |
| 20 | Ohio | 93.7 | $72,212 | $1,238 | Utility Calculator |
| 21 | Wyoming | 93.7 | $75,532 | $1,079 | Utility Calculator |
| 22 | Michigan | 93.9 | $72,389 | $1,327 | Utility Calculator |
| 23 | South Dakota | 94.1 | $76,881 | $1,094 | Utility Calculator |
| 24 | Illinois | 95.1 | $83,211 | $1,579 | Utility Calculator |
| 25 | Pennsylvania | 96.2 | $77,545 | $1,501 | Utility Calculator |
| 26 | North Carolina | 96.6 | $73,958 | $1,410 | Utility Calculator |
| 27 | Wisconsin | 97.4 | $77,488 | $1,287 | Utility Calculator |
| 28 | Virginia | 99.1 | $92,090 | $1,735 | Utility Calculator |
| 29 | Utah | 100.6 | $96,658 | $1,582 | Utility Calculator |
| 30 | Florida | 100.7 | $77,735 | $1,973 | Utility Calculator |
| 31 | Nevada | 100.7 | $81,134 | $1,733 | Utility Calculator |
| 32 | Delaware | 101.7 | $87,534 | $1,675 | Utility Calculator |
| 33 | Idaho | 101.7 | $81,166 | $1,410 | Utility Calculator |
| 34 | Colorado | 101.8 | $97,113 | $1,895 | Utility Calculator |
| 35 | Montana | 105.9 | $75,340 | $1,558 | Utility Calculator |
| 36 | Arizona | 107.6 | $81,486 | $1,709 | Utility Calculator |
| 37 | Oregon | 109.6 | $85,220 | $1,738 | Utility Calculator |
| 38 | New Hampshire | 110.1 | $99,782 | $2,040 | Utility Calculator |
| 39 | Rhode Island | 111.2 | $83,504 | $1,765 | Utility Calculator |
| 40 | Vermont | 113 | $82,730 | $1,684 | Utility Calculator |
| 41 | Connecticut | 114.2 | $96,049 | $2,027 | Utility Calculator |
| 42 | Maine | 114.6 | $76,442 | $1,681 | Utility Calculator |
| 43 | Washington | 114.6 | $99,389 | $2,072 | Utility Calculator |
| 44 | New Jersey | 118.8 | $104,294 | $2,282 | Utility Calculator |
| 45 | Maryland | 121.1 | $102,905 | $1,955 | Utility Calculator |
| 46 | New York | 124.7 | $85,820 | $2,520 | Utility Calculator |
| 47 | Alaska | 129 | $95,665 | $1,591 | Utility Calculator |
| 48 | California | 140.5 | $100,149 | $2,745 | Utility Calculator |
| 49 | Massachusetts | 147.8 | $104,828 | $2,527 | Utility Calculator |
| 50 | Hawaii | 184.8 | $100,745 | $2,568 | Utility Calculator |
Methodology
How we collected and ranked the data
States are ranked by cost of living index (ascending) as a strong proxy for overall utility costs. Lower cost-of-living states consistently have lower energy and utility rates. Data from EIA, BLS, and state utility commission reports.
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View all 107 state comparisonsFrequently Asked Questions
Which state has the cheapest electricity?
Louisiana, Arkansas, Oklahoma, and Idaho typically have the lowest electricity rates, often under 10¢/kWh. These states benefit from abundant natural gas, hydropower, or low-regulation energy markets.
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?
The average American household spends roughly $400–$500/month on all utilities combined (electricity, gas, water, sewer, trash, internet). This varies widely: southern states have higher cooling costs, while northern states spend more on heating.