California, Massachusetts or Hawaii? Which state has the highest cost of living?

Hawaii is the most expensive state to live in, according to new cost of living data from doxo, an online bill payment service.

Doxo recently released its 2024 Cost of Bills Index, which compares average household costs by state and by major U.S. cities.

The Cost of Bill Index tracks data on the 10 most common household bills, including utilities, phone and cable, auto loans, auto and health insurance, as well as rent and mortgage.

According to the report, the average U.S. household spends $2,126 a month on the 10 most common household bills, or $25,513 annually.

Here's how these common household expenses vary at the state level:

Most expensive state based on monthly costs

Hawaii ranks No. 1 as the most expensive state based on monthly household bills. Hawaii residents spend an average of $3,091 each month on utilities, rent/mortgage and other common household costs. Residents spend 45% above the national average. The median household income in Hawaii is $94,814, according to the U.S. Census Bureau.

The average monthly bill for a mortgage in Hawaii is $2,576, while the average rent is $1,983, the report found.

These are the top 10 most expensive states to live in based on monthly costs:

1. Hawaii
2. California
3. Massachusetts
4. New Jersey
5. Maryland
6. Washington
7. New York
8. Connecticut
9. Colorado
10. New Hampshire

Least expensive state based on monthly costs

West Virginia ranked as the least expensive state based on monthly household costs. According to the U.S. Census Bureau, the median household income is $55,217.

West Virginians spend an average of $1,596 per month on household bill. The costs of bill is 25% below the national average. Mortgages cost an average of $961, while rent averages out to $846 a month, according to the report.

These are the top 10 least expensive states to live in based on monthly costs:

1. West Virginia
2. Mississippi
3. Arkansas
4. Kentucky
5. Oklahoma
6. Indiana
7. Alabama
8. Missouri
9. South Dakota
10. Kansas

What is cost of living? 

The cost of living is the amount of money it takes to cover basic expenses. State and region scores across the country give a snapshot of how expensive it is to live in a place based on earned wages. It's not enough to just compare wages and consumer prices because people who live in areas with higher expenses often make more money than those who live in less expensive places.

Cost-of-living index scores compare a certain area to the national average. There isn’t one federal index, and not every index calculates the cost of living the same, according to Investopedia. The score is generally pulled from the cost of housing, utilities, groceries, transportation, health care and miscellaneous goods and services.

Contributing: Clare Mulroy, USA TODAY