How expensive are bills in Tennessee? New report ranks state among the cheapest

A new report reveals just how much it costs to live in Tennessee as it relates to the most common household bills. And its fairly cheap compared to other parts of the country.

The 2024 Cost of Bills Index Report from Doxo is based on the company's nationwide bill payment statistics for the ten most common household bill categories, including mortgage, utilities, car loans and more. Doxo is a third-party online bill payment network that aims to facilitate and streamline the bill pay experience.

The report, released on June 12, includes state and city-specific breakdowns with comparisons to the national average and determines which areas are the least and most expensive places in the United States to live in, based on the cost of bills index.

Here are findings from the report and how Tennessee ranked among other U.S. states.

Households in the U.S. spend the most on mortgage payments, rent payments and car loans

According to the report, the total market size for U.S. household bills amounts to $4.46 trillion annually. U.S. households spend $3.35 trillion per year on the 10 essential household bills which include: mortgage, rent, auto loans, utilities, (electric, gas, water and sewer, and waste and recycling) car insurance, cable and internet, health insurance, mobile phone, alarm and security, and life insurance.

Out of these 10, U.S. households spend the most on mortgages ($885 billion), rent payments ($656 billion) and car loans ($571 billion).

The average U.S. household spends $25,513 annually on the top 10 essential household bills. The top three expenditures reflect those at the national level, while the bottom three include life insurance, alarm and security, and mobile phone payments.

According to the report, Tennesseans spend 9% less than the national average on household bills, bringing the Volunteer State in at number 35 of most/least expensive state to live in the U.S., based on the Cost of Bills index. When it comes to cities, Memphis ranks as one of the least expensive of larger U.S. cities, spending 10% less than the national average.

What are the most expensive states to live in?

Here's the top 5, according to the 2024 Cost of Bills Index.

1. Hawaii (45% more expensive than the national average)
2. California (42% more expensive than the national average)
3. Massachusetts (33% more expensive than the national average)
4. New Jersey ( 32% more expensive than the national average)
5. Maryland (26% more expensive than the national average)

What are the least expensive states to live in?

Here's the least expensive states, according to the 2024 Cost of Bills Index.

1. Oklahoma (16% less expensive than the national average)
2. Kentucky (16% less expensive than the national average)
3. Arkansas (17% less expensive than the national average)
4. Mississippi (19% less expensive than the national average)
5. West Virginia (25% less expensive than the national average)

Methodology

The Cost of Bills Index is designed to illustrate how much it costs to live in one area as compared to another with a specific focus on household bills. The number 100 was used to represent the national average and then states were assigned a number, either above or below 100, based on how they compare to the national average.

For example, the Cost of Bills Index for Alabama is 86, meaning 14% less than the national average, while the Cost of Bills Index for California is 42, meaning 42% above the national average.

Diana Leyva covers trending news and service journalism for The Tennessean. Contact her at Dleyva@gannett.com or follow her on X, the platform formerly known as Twitter, at @_leyvadiana