There is a lot of information we can learn about the average annual amount residential consumers spend on electricity in the United States. Comparing average annual household income with average electricity rates by state can show us just how much of a residential consumer’s household income goes towards paying for electricity every year.
Based on the chart below, we can see that the state with the lowest average annual household income is Mississippi at $40,037. New Hampshire on the other hand has the highest average annual household income: $75,657. We also know that the average household in the United States consumes 911 kWh per month. If we multiply the average monthly kWh rate for a state by this number, we can get an approximate idea as to the average cost per month for each state.
When it comes to electricity, Hawaii has the highest average monthly kWh rate at 26.17. Since this rate is the highest, Hawaii also claims the title for the state that pays the most annually for electricity. Meanwhile, Washington has the lowest average monthly kWh rate at: 7.41. Therefore, the state that pays the least (annually) for electricity is also Washington.
Now, let’s take a look at the most important data. To determine the percentage of salary or income the average household spends on electricity every year, we first need to multiply the average monthly amount by 12. Then, we can take that value, and subtract it from the state’s average annual salary amount. Dividing that value by the average annual salary again will show us the percentage.
For example:
- Alabama spends an average of $85 per month on electricity. 85 x 12 = $1,020.
- The average annual household income in Alabama is: $44,508. 44,508 – 1020 = 43,488.
- 43,488/44,508 = 0.977.
- Multiply this number by 100 = 97.7.
- The difference between 97.7 and 100% = 2.3%.
The average annual percentage of salary that a residential consumer will need to spend on electricity in Alabama is 2.3%.
The state that has the most salary that goes towards electricity is Hawaii at 4.5% followed by Rhode Island at 3.4%. The state with the least salary that goes towards electricity is Washington at 1.2% followed by Wyoming and Utah at 1.5%.
On average, the majority of households across the United States spend between 2 – 3% of their annual income on electricity. That being said, the average percentage of annual income or salary that an American household will need to spend on electricity is 2.15%.
For more details, take a look at the chart below to see each state broken down into:
- Average annual household salary
- Average annual electricity rate (kWh)
- Average electricity costs (month/annual)
- Average percentage of household income spent on electricity each year
| State | Annual Salary | Electric Rate | Electric Costs | Annual Cost | % of Salary |
|---|---|---|---|---|---|
| Alabama | $44,508 | 9.37 | $85.00 | $1,020 | 2.30% |
| Alaska | $75,112 | 17.94 | $163 | $1,956 | 2.70% |
| Arizona | $52,248 | 10.4 | $94 | $1,228 | 2.60% |
| Arkansas | $42,798 | 8.15 | $74 | $888 | 2.10% |
| California | $63,636 | 15.5 | $141 | $1,692 | 2.70% |
| Colorado | $66,596 | 9.78 | $89 | $1,068 | 1.70% |
| Connecticut | $72,889 | 17.76 | $161 | $1,932 | 2.70% |
| Delaware | $57,756 | 11.21 | $102 | $1,224 | 2.20% |
| Florida | $48,855 | 10.64 | $96 | $1,152 | 2.40% |
| Georgia | $50,768 | 9.52 | $86 | $1,032 | 2.10% |
| Hawaii | $64,514 | 26.17 | $238 | $2,856 | 4.50% |
| Idaho | $51,624 | 8.12 | $73 | $876 | 1.70% |
| Illinois | $60,413 | 9.28 | $84 | $1,008 | 1.70% |
| Indiana | $51,983 | 8.79 | $80 | $960 | 1.90% |
| Iowa | $60,855 | 8.47 | $77 | $924 | 1.60% |
| Kansas | $54,865 | 10.06 | $91 | $1,092 | 2.00% |
| Kentuky | $42,387 | 8.03 | $73 | $876 | 2.10% |
| Louisiana | $45,992 | 7.64 | $69 | $828 | 1.90% |
| Maine | $50,756 | 12.97 | $118 | $1,416 | 2.80% |
| Maryland | $73,594 | 12.14 | $110 | $1,320 | 1.80% |
| Massachusetts | $67,861 | 16.86 | $153 | $1,836 | 2.80% |
| Michigan | $54,203 | 10.84 | $98 | $1,176 | 2.20% |
| Minnesota | $68,730 | 9.69 | $88 | $1,056 | 1.60% |
| Mississippi | $40,037 | 9.55 | $87 | $1,044 | 2.70% |
| Missouri | $59,196 | 9.3 | $84 | $1,008 | 1.80% |
| Montana | $51,395 | 8.93 | $81 | $972 | 1.90% |
| Nebraska | $60,474 | 9.04 | $82 | $984 | 1.70% |
| Nevada | $52,008 | 9.48 | $86 | $1,032 | 2.00% |
| New Hampshire | $75,675 | 16.03 | $146 | $1,752 | 2.40% |
| New Jersey | $68,357 | 13.93 | $126 | $1,512 | 2.30% |
| New Mexico | $45,119 | 9.68 | $88 | $1,056 | 2.40% |
| New York | $58,005 | 15.28 | $139 | $1,668 | 2.90% |
| North Carolina | $50,797 | 9.36 | $85 | $1,020 | 2.10% |
| North Dakota | $57,415 | 8.85 | $80 | $960 | 1.70% |
| Ohio | $53,301 | 9.9 | $90 | $1,080 | 2.10% |
| Oklahoma | $47,077 | 7.83 | $71 | $852 | 1.90% |
| Oregon | $60,834 | 8.82 | $80 | $960 | 1.60% |
| Pennsylvania | $60,389 | 10.41 | $94 | $1,128 | 1.90% |
| Rhode Island | $55,701 | 17.05 | $155 | $1,860 | 3.40% |
| South Carolina | $46,360 | 9.48 | $86 | $1,032 | 2.30% |
| South Dakota | $55,065 | 9.31 | $84 | $1,008 | 1.90% |
| Tennessee | $47,330 | 9.35 | $85 | $1,020 | 2.20% |
| Texas | $56,473 | 8.63 | $78 | $936 | 1.70% |
| Utah | $66,258 | 8.61 | $78 | $936 | 1.50% |
| Vermont | $59,494 | 14.36 | $130 | $1,560 | 2.70% |
| Virginia | $61,486 | 9.31 | $84 | $1,008 | 1.70% |
| Washington | $67,243 | 7.41 | $67 | $804 | 1.20% |
| Washington D.C. | $70,071 | 12.08 | $110 | $1,320 | 1.90% |
| West Virginia | $42,824 | 8.12 | $73 | $876 | 2.10% |
| Wisconsin | $55,425 | 10.93 | $99 | $1,188 | 2.20% |
| Wyoming | $60,925 | 7.95 | $72 | $864 | 1.50% |
This data was collected from 2015. Also, keep in mind that it doesn’t include any distribution related charges or miscellaneous fees that consumers might find on their electric bill increasing the overall amount they pay for electricity every month.
