Household bills, including housing, utilities, insurance and car payments, make up roughly 47% of a household’s income and 27% of all consumer spending, according to a new study from Doxo Insights. Americans spend $5.03 trillion annually on bills, with $3.69 trillion going to 13 of the most common bills.  As prices continue climbing for everyday expenses, moving to an area with lower bill costs can help you stretch your retirement budget. Since so much of a household’s spending goes toward monthly bills, finding areas with lower costs for these fixed expenses can really help.
But where are the cheapest states for bills? The latest Doxo survey reveals a huge disparity between the most expensive and least expensive states.
Read:Florida hit hard by shrinking purchasing power
California vs. West Virginia
In California, the median household bill expenditure is $2,892, making up 33% of a household’s income. In West Virginia, bills cost just $1,116 per month, or 22% of the household income. That’s a difference of $1,776 per month, which is more than the median weekly income at $1,235 in the US in 2026, according to Bureau of Labor Statistics data. In other words, someone earning the country’s median salary would have to work a whole extra week, and then some, to pay monthly bills in California vs. West Virginia.
Let’s explore the cheapest states for common household bills and why these states might be worth considering for retirees or soon-to-be retirees looking to relocate.
1. West Virginia
$1,116 for monthly bills
The cheapest state to live in based on the cost of common bills, West Virginia requires just 22% of household income to be allocated to these bills. That makes it one of the cheapest states overall. West Virginia also has very low property taxes, no inheritance tax, and state income and sales tax close to the national average, according to The Tax Foundation.
The downside for retirees? West Virginia has the worst access to healthcare for seniors in the country, according to RetirementLiving.com. It also lacks walkable communities, which is often important for seniors seeking an easy lifestyle close to neighbors.
2. Mississippi
$1,547 for monthly bills
It’s hard to compete with West Virginia when it comes to the cost of bills. Mississippi slides into second place at $1,547. However, the percentage of their income residents spend on bills in Mississippi is 33%, which rivals California – the most expensive state.
Mississippi bills are 26% below the national median, but auto loans skew higher than average at $500 per month. Known for a slow-and-easy Gulf Coast lifestyle, Mississippi can be a great place to retire. There’s no state income tax on retirement income, no inheritance tax, and a tax exemption on the first $75,000 of your home’s true value. If you live in a state with a higher cost of living, it might make sense to buy a small home in Mississippi.
3. Arkansas
$1,580 for monthly bills
Arkansas, Mississippi’s neighbor to the Northwest, is not much more expensive. The state comes in third for the cost of common bills. Bills are actually slightly more affordable in relation to the state’s average income compared to Mississippi. Household bills take up 31% of the average income in Arkansas.
Arkansas has low property taxes, no state income tax on social security income, and available state tax deductions of up to $6,000 on some retirement accounts, but sales tax may exceed 9% in some regions, according to AmeriFreight. Â Small towns and medium-sized cities with a laidback, slower pace of life may add to the attraction of Arkansas for retirees
4. Alabama
$1,603 for monthly bills
Alabama’s Gulf Coast has been growing in popularity as a vacation spot and also a haven for beach-loving retirees. But the state has more to offer than just white sand beaches and a gorgeous year-round climate.
Monthly bills cost an average of $1,603 per month, putting it fourth on the list of least expensive states for bills. Bills cost roughly 29% of the average income. While mortgages and electric bills are slightly higher than Arkansas, Alabama residents will pay less for their auto loans, car insurance, and mobile phone bills. That savings can add up.
5. Oklahoma
$1,605 for monthly bills
Just two dollars more expensive than Alabama, Oklahoma lands fifth on the list of inexpensive places to retire. Like Alabama, common monthly bills cost roughly 29% of the average income. Mortgages are higher than some of the cheaper states, but auto loans and car insurance are significantly lower.
Choice Mutual, an independent insurance agency, rated Oklahoma as the fourth best state for retirees, largely based on its affordability and relatively mild temperatures year-round. The downside? A potential for severe weather, including tornadoes.
Five More States with Inexpensive Bills for Retirees
Of course, the decision of where to retire often comes down to more than costs, including access to healthcare, the desire to stay close to friends and family, and how you plan to spend your later years.
Here are five more states that are affordable for retirees, spanning from the Southwest to the Upper Midwest bordering Canada.
6. North Dakota
– $1,621 for monthly bills
– 25% of average income
7. Kentucky
– $1,624 for monthly bills
 – 30% of average income
8. New Mexico
– $1,630 for monthly bills
– 30% of average income
9. South Dakota
– $1,640 for monthly bills
– 27% of average income
10. Iowa
– $1,640 for monthly bills
– 26% of average income
This story written for TheStreet by Nifty 50+