The States Where Americans Spend the Most to Keep a Home Cool

Air conditioning is the single largest summer expense in most American homes, and the share of a paycheck it consumes varies widely by state. Researchers with Power Choice Texas compared the annual cost of running cooling equipment in each state against median household income to find where that cost lands hardest.

Nationally, the average household spends $502.59 a year to run air conditioners and air handlers, or 0.616% of median household income. Only 13 states carry a cooling burden above that national average, which shows how concentrated the expense is in a handful of hot or high-priced states.

Three findings stand out:

1. Hawaii has the largest cooling burden in the country at 1.537% of median household income, nearly two and a half times the national figure.
2. Louisiana carries the largest burden on the mainland at 1.183%, followed by Mississippi at 1.147%.
3. Texas ranks sixth at 0.950%, driven by an annual cooling bill of $757.17 against median household income of $79,721.

The 10 States With the Largest Cooling Burdens

Source: EIA Form EIA-861M, EIA RECS 2020, and U.S. Census Bureau ACS 2024. Figures are rounded; ranks use unrounded values.

Hawaii residents spend $1,548.24 a year on cooling against 2024 median household income of $100,745. That works out to 149.5% more of a paycheck than the average American household spends.

Louisiana ranks second. Households there face annual cooling bills of $721.32 and median income of $60,986, putting the burden at nearly double the national average.

Mississippi ranks third at 1.147%, with an average annual cooling bill of $678.44 and median household income of $59,127.

Arizona follows at the same rounded figure of 1.147%, separated only at higher precision. Arizona households spend $1 on cooling for every $87.16 earned, compared with $87.15 in Mississippi. The annual cost in Arizona is $934.89 against median income of $81,486.

Florida ranks fifth. Households spend 1.015% of income on cooling, 64.8% above the national average, with an annual bill of $789.23 and median income of $77,735.

Texas ranks sixth at 0.950%, or 54.2% above the national average, on an annual cooling bill of $757.17 and median household income of $79,721.

Alabama ranks seventh at 0.904%, with cooling costs of $602.68 against median income of $66,659. South Carolina follows at 0.802% on a bill of $580.30 and income of $72,350.

Nevada ranks ninth at 0.748%, with an annual cooling cost of $607.06 and median income of $81,134. Oklahoma completes the top 10 at 0.743%, on a bill of $491.26 and median income of $66,148.

Why Cooling Burdens Vary by State

High burdens come from two different directions. Some states pay a high price per kWh, as in Hawaii, where residential electricity runs more than double the national rate. Others simply need a lot of cooling, which is the case in Arizona, Florida, and Texas. The heaviest burdens fall where both a hot climate and lower household earnings meet, as in Louisiana and Mississippi.

Matt Oberle, COO of Power Choice Texas, commented on the findings:

“Air conditioning has been a necessity this summer, and many Americans don’t have the luxury of going without despite the fact it is one of the most expensive things to power in the home. This squeeze hits people who earn the least the hardest, since they don’t have as much breathing room when it comes to covering cooling bills.

“There were a few common reasons why a state’s residents may face high cooling burdens. The simplest one is just high electricity costs for places like Hawaii, which pay more than double the national rate for electricity. Other states face high burdens due to climates that need a lot of air conditioning. Arizona, Florida, and Texas need a lot of cooling, but can cover this with relatively high household incomes. However, states like Louisiana and Mississippi have some of the highest burdens because they have climates that need lots of air conditioning but can only pay for it with relatively low household earnings. One thing that was interesting to see was that only 13 states had cooling burdens that were higher than the national average, showing how hard some states are hit by this problem.

“There are a few good tricks to get the most cooling for your buck. The simplest way is to set the thermostat slightly higher. The general wisdom is that raising the thermostat by one degree Fahrenheit can reduce cooling bills by up to 3% or $15 yearly for the average home. This works because minimizing the difference between the indoor and outdoor temperatures prevents your home from absorbing heat as quickly and reduces the load on your air conditioner. You can also use smart thermostats to raise temperatures when you’re out of the home for a few hours, which further reduces the load on the air conditioner.”

Supply rates are the other lever available to households in deregulated markets. Texas residents can compare Texas electricity rates and lock a plan that fits their summer usage profile, which affects the price side of the same equation the thermostat affects on the usage side.

All 50 States Ranked by Cooling Burden

Cooling electricity use combines air conditioners and air handlers used for cooling.

Cooling Burden in Dollars Earned

The same figures restated as dollars spent per $1,000 of household income, and as the share of every dollar earned that goes to cooling.

Cooling Burden Expressed Three Ways

Rank / State	Total Annual Cooling Cost	2024 Median Household Income	Cooling Burden share of income	Spent on Cooling per $1,000 Earned	$1 of Every X Dollars Earned
1. Hawaii	$1,548.24	$100,745	1.537%	$15.37	$65.07
2. Louisiana	$721.32	$60,986	1.183%	$11.83	$84.55
3. Mississippi	$678.44	$59,127	1.147%	$11.47	$87.15
4. Arizona	$934.89	$81,486	1.147%	$11.47	$87.16
5. Florida	$789.23	$77,735	1.015%	$10.15	$98.49
6. Texas	$757.17	$79,721	0.950%	$9.50	$105.29
7. Alabama	$602.68	$66,659	0.904%	$9.04	$110.60
8. South Carolina	$580.30	$72,350	0.802%	$8.02	$124.68
9. Nevada	$607.06	$81,134	0.748%	$7.48	$133.65
10. Oklahoma	$491.26	$66,148	0.743%	$7.43	$134.65
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