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The cost of living throughout the United States is high with the average household spending roughly $77,280 a year, according to the Bureau for Labor Statistics. For many people, particularly homeowners, costs run even higher than that.

But not all costs are unavoidable. Throughout the country, homeowners are spending tens of thousands of dollars more than they think on hidden living expenses. From excessive utility payments and insurance premiums to unexpected maintenance costs, the typical annual cost of homeownership is 26% higher than in 2020.

According to a recent Bankrate study, there are 10 states where people spend the most money — over $20,000 — on hidden expenses.

Here’s how much extra you’ll spend each year if you live in one of those states.

10. Colorado

• Monthly cost: $1,753
• Yearly cost: $21,038

9. Rhode Island

• Monthly cost: $1,833
• Yearly cost: $21,994

8. New York

• Monthly cost: $1,901
• Yearly cost: $22,807

7. New Hampshire

• Monthly cost: $1,938
• Yearly cost: $23,256

6. Washington

• Monthly cost: $1,947
• Yearly cost: $23,365

5. Connecticut

• Monthly cost: $1,960
• Yearly cost: $23,515

4. New Jersey

• Monthly cost: $2,131
• Yearly cost: $25,573

3. Massachusetts

• Monthly cost: $2,198
• Yearly cost: $26,313

2. California

• Monthly cost: $2,399
• Yearly cost: $28,790

1. Hawaii

• Monthly cost: $2,418
• Yearly cost: $29,015

Top Hidden Expenses You Could Have

Everyone’s household is different, but certain expenses are more common than others. These are some of the top areas where you could be spending more than you think:

• Property taxes
• Insurance (e.g., homeowners insurance)
• Energy bill
• Internet 
• Cable

It’s also easy to forget about inflation and how it impacts cost of living. From insurance providers to property taxes, inflation can cause costs to rise — sometimes substantially.

And while the above numbers don’t necessarily include these other expenses, it’s still worth noting that the following could also lead to higher-than-expected costs:

• HOA fees
• Pest control
• Private Mortgage Insurance (PMI)
• Closing costs

Note that the study primarily focuses on homeowners in different parts of the country. However, even non-homeowners have their share of hidden expenses. Renters, for example, may have to pay for things like:

• Storage space
• Parking
• Trash pick-up
• Renters insurance
• Application fees
• Pet deposits
• Pet rent
• Regular deposit
• Cleaning fees
• Moving costs

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Strategies to Cut Hidden Expenses

Here are some strategies you could use to help reduce some of the hidden living costs and expenses:

• Choose cost-effective appliances. Energy-efficient appliances, such as those with the ENERGY STAR rating, could save you money in the long run. For example, replacing your old refrigerator with a more efficient one could save you $60 annually. This might not seem like much, but it can add up.
• Build up equity. If you’re a homeowner paying PMI, it’s probably because you have less than 20% equity in your home. In that case, prioritize paying down your mortgage until you’ve built enough equity to remove the PMI.
• Seek cheaper alternatives. Are you paying too much for your insurance premiums, cell phone plan, or internet service? Shop around and switch to a less expensive provider.
• Make a budget. Creating one isn’t as hard as it might seem, though sticking with it can be tricky. Still, making a budget (or adjusting the one you’ve got) can give you a better idea of where you’re spending too much. If it’s a fixed expense (like auto insurance), your budget will make it easier to see where you might be able to make a change.
• Pay down debt. Those high-interest loans and credit cards could be costing you hundreds or thousands of dollars a year in interest. This is on top of the $20,000 or so you might already be spending in hidden costs. Tackle the higher-interest debts one at a time until they’re gone.
• Downsize or move. Ask yourself whether or not moving is an option. You might be able to get a cheaper rent or mortgage if so. Just be sure to factor in increased costs like gas, wear and tear on your car, and time. If moving isn’t viable, consider getting a roommate to split costs with.

Other States Where You Could Be Paying At Least $10K a Year

You might not be paying more than $20,000 in hidden expenses, but even $10,000 is still a lot. Here are the states where the average homeowner spends between $10,000 and $20,000 extra each year:

• Kentucky — $11,559
• Arkansas — $11,692
• Mississippi — $11,881
• Alabama — $12,258
• Indiana — $12,259
• Iowa — $12,448
• Louisiana — $12,593
• Missouri — $12,639
• Oklahoma — $12,642
• West Virginia — $12,656
• Ohio — $12,975
• Michigan — $13,235
• North Dakota — $13,375
• New Mexico — $13,533
• Kansas — $14,012
• Wisconsin — $14,508
• South Dakota — $14,581
• North Carolina — $14,647
• Tennessee — $14,662
• Delaware — $14,785
• Nebraska — $14,946
• Pennsylvania — $14,983
• South Carolina — $15,065
• Wyoming — $15,420
• Georgia — $16,035
• Idaho — $16,197
• Illinois — $16,205
• Minnesota — $16,217
• Arizona — $16,373
• Nevada — $16,636
• Maine — $17,110
• Virginia — $17,647
• Texas — $18,036
• Montana — $18,081
• Alaska — $18,291
• Utah — $19,137
• Florida — $19,182
• Oregon — $19,221
• Maryland — $19,712
• Vermont — $19,836