Average Monthly Expenses by State (2026)

· Updated

Understanding where your money goes is the first step to controlling it. Here’s how the average American household budget breaks down, and how it varies by state.

Table of Contents

Average Monthly Household Expenses Breakdown

Category Monthly Average Annual Average % of Spending
Housing (mortgage/rent, insurance, maintenance) $2,025 $24,300 31.4%
Transportation (car payment, insurance, gas, maintenance) $1,025 $12,300 15.9%
Food (groceries + dining out) $810 $9,720 12.6%
Healthcare (insurance, medical, prescriptions) $520 $6,240 8.1%
Personal insurance & pensions (Social Security, retirement) $680 $8,160 10.6%
Entertainment/recreation $290 $3,480 4.5%
Utilities (electric, gas, water, internet, phone) $370 $4,440 5.7%
Clothing and services $160 $1,920 2.5%
Education $115 $1,380 1.8%
Charitable contributions $185 $2,220 2.9%
Personal care $75 $900 1.2%
Miscellaneous $185 $2,220 2.9%
Total $6,440 $77,280 100%

Food Spending Breakdown

Category Monthly Average Annual Notes
Groceries $520 $6,240 64% of food budget
Dining out (restaurants, takeout) $290 $3,480 36% of food budget
Total food $810 $9,720 12.6% of all spending

Groceries by Household Size

Household Size Monthly Grocery Cost USDA “Thrifty” Plan USDA “Moderate” Plan
1 person $340 $230 $340
2 people $580 $420 $600
3 people $770 $560 $790
4 people $920 $680 $960
5 people $1,060 $780 $1,100

Average Monthly Expenses by State

State Avg. Monthly Expenses vs. National Avg. Key Cost Driver
Hawaii $8,540 +33% Housing, groceries
California $8,100 +26% Housing
Massachusetts $7,820 +21% Housing, healthcare
New York $7,680 +19% Housing, taxes
Oregon $7,280 +13% Housing
Washington $7,200 +12% Housing
Connecticut $7,100 +10% Housing, taxes
New Jersey $7,040 +9% Housing, taxes
Colorado $6,980 +8% Housing
Maryland $6,920 +7% Housing
Alaska $6,880 +7% Groceries, energy
Virginia $6,780 +5% Housing
New Hampshire $6,720 +4% Housing
Rhode Island $6,680 +4% Housing
Vermont $6,640 +3% Energy, housing
Delaware $6,560 +2% Mixed
National Average $6,440 — —
Minnesota $6,400 -1% Energy
Illinois $6,360 -1% Taxes
Pennsylvania $6,280 -2% Mixed
Florida $6,200 -4% Housing (rising)
Nevada $6,160 -4% Mixed
Maine $6,120 -5% Energy
Arizona $6,040 -6% Mixed
Montana $5,960 -7% Energy
Utah $5,920 -8% Mixed
Wisconsin $5,880 -9% Energy
North Carolina $5,840 -9% Mixed
Michigan $5,800 -10% Mixed
South Carolina $5,760 -11% Mixed
Idaho $5,720 -11% Mixed
Nebraska $5,680 -12% Mixed
New Mexico $5,640 -12% Mixed
Ohio $5,600 -13% Mixed
Georgia $5,560 -14% Mixed
Texas $5,520 -14% Low taxes offset housing
Indiana $5,480 -15% Low housing
South Dakota $5,440 -16% Low housing
Iowa $5,400 -16% Low housing
North Dakota $5,360 -17% Low housing
Tennessee $5,320 -17% No income tax
Missouri $5,280 -18% Low housing
Wyoming $5,240 -19% No income tax
Kentucky $5,200 -19% Low housing
Kansas $5,160 -20% Low housing
Louisiana $5,120 -20% Low housing
Alabama $5,080 -21% Low housing
Oklahoma $5,040 -22% Low housing
Arkansas $5,000 -22% Lowest CoL
West Virginia $4,960 -23% Lowest CoL
Mississippi $4,880 -24% Lowest CoL

Expenses by Age Group

Age Group Monthly Expenses Largest Category Notable Differences
Under 25 $4,280 Housing (35%) Lower housing, less healthcare
25-34 $5,880 Housing (33%) Childcare costs rising
35-44 $7,280 Housing (30%) Peak spending years, childcare
45-54 $7,540 Housing (29%) Highest spending, college costs
55-64 $6,640 Housing (31%) Healthcare rising
65-74 $5,520 Housing (33%) Healthcare is 15% of budget
75+ $4,360 Housing (37%) Healthcare is 18% of budget

Expenses by Income Level

Income Monthly Expenses Housing % Savings Rate
Under $30K $3,280 40% -5% (spending more than earning)
$30K-$50K $4,160 35% 3%
$50K-$70K $5,240 32% 8%
$70K-$100K $6,440 30% 12%
$100K-$150K $7,680 28% 18%
$150K-$200K $9,120 26% 22%
$200K+ $12,400 24% 30%+

How to Reduce Monthly Expenses

Category Strategy Potential Monthly Savings
Housing Move to cheaper area, get a roommate, or downsize $300-$1,000+
Transportation Buy used, drive less, single car household $200-$600
Food Meal plan, cook at home, reduce dining out $200-$400
Subscriptions Audit all recurring charges $50-$150
Insurance Shop rates annually, bundle policies $50-$200
Utilities Energy efficiency, negotiate internet $30-$100
Phone Switch to MVNO or low-cost carrier $30-$80
Entertainment Free alternatives, library, parks $50-$200

Related: 50/30/20 Budget Rule | Cost of Living by State | Average Rent by State | Average Income