American households now spend a median of $1,065 per year on water and sewer service, according to a new national analysis from bill payment platform doxo, highlighting continued increases in utility costs amid infrastructure investment and rising operating expenses.

The company's 2026 U.S. Utilities Market Size and Household Spending Report found that 72% of U.S. households pay water and sewer bills, with a median monthly payment of $89. Nationally, water and sewer services account for an estimated $139 billion annual market, with median household costs increasing 2.8% year over year.

Overall, the report estimates U.S. households spend $582 billion annually on utility bills, with a median total utility cost of $4,361 per household per year, or $363 per month. Utilities represent approximately 5% of annual household income, according to the analysis.

The report attributes rising water and sewer costs in part to ongoing capital infrastructure investments and increasing operational expenses. While electricity bills experienced the largest annual increase at 6.46%, water and sewer costs continued their upward trend alongside waste and recycling services.

Among states, Maryland had the nation's highest median monthly water and sewer bill at $245, contributing to the highest overall median utility cost of $625 per month. Other states with high water and sewer costs included Vermont ($162), Washington ($153) and Wisconsin ($145).

The report analyzed actual household bill payment data from more than 10 million consumers across 97% of U.S. ZIP codes to estimate utility spending at the national, state and local levels.