The average U.S. household spends about $114 per month on cell phone service, according to the latest Consumer Expenditure Survey. That figure includes taxes and fees, which can add 10–20% to the base rate.
Ready to Compare Plans?
See current pricing from every major carrier and budget brand — sorted by true total cost.
Compare Plans →Free to compare · No credit check to browse · Affiliate-supportedAverage Cell Phone Plan Costs
The average U.S. household spends about $114 per month on cell phone service, according to the latest Consumer Expenditure Survey from the Bureau of Labor Statistics. That figure includes both the base plan price and all associated taxes, fees, and surcharges. For a single line, the average dips to roughly $70–$80 per month. These numbers have risen steadily over the past decade, driven by higher data usage and the cost of network infrastructure.
Taxes and Fees Breakdown
Your monthly bill is not just the advertised price. Taxes and fees can add 10% to 20% on top of the base rate. The Federal Communications Commission (FCC) estimates that the average bill includes a mix of federal, state, and local taxes, plus universal service fund contributions, regulatory fees, and 911 surcharges. According to the Tax Foundation, the effective tax rate on wireless services in some states exceeds 25%. The table below shows typical ranges:
| Fee Type | Typical Amount |
|---|---|
| Federal Universal Service Fund | 5–10% of interstate charges |
| State & Local Sales Taxes | 5–12% of total |
| 911 Surcharge | $0.50–$3.00 per line |
| Regulatory & Administrative Fees | $1–$5 per line |
Prepaid vs Postpaid Comparison
One of the biggest cost decisions is choosing between prepaid and postpaid plans. Prepaid plans—where you pay upfront—typically cost $30–$50 per month for unlimited data, while postpaid plans from major national carriers average $60–$90 per month. The difference often comes down to premium features: postpaid may include device financing, international roaming, and higher-priority data. However, prepaid plans have become increasingly competitive, with many offering reliable service on the same networks.
- Prepaid: No credit check, lower monthly cost, no annual contract, but often slower data speeds during congestion.
- Postpaid: Higher monthly cost, multi-line discounts, device payment plans, and priority data on the network.
How to Save on Your Monthly Plan
If your primary goal is to lower your cell phone bill, consider these actionable steps:
- Switch to a prepaid plan — You can often save 30–50% over postpaid if you don’t need device financing.
- Bring your own device — Avoid the installment cost by using a compatible unlocked phone.
- Join a family plan — Many major carriers offer significant discounts for adding lines, sometimes dropping the per-line cost to under $30.
- Check your data usage — If you use less than 5GB per month, a limited-data plan can cost as low as $15–$25.
- Review taxes and fees — Compare the effective total cost (including taxes) across providers, as rates vary by location.
What the Data Says
Annual household spending on cell phone service averaged $1,368 in 2025, according to the Consumer Expenditure Survey. This represents roughly 2% of median household income. The data also shows that lower-income households spend a larger share of their income on wireless service, highlighting the importance of finding affordable options. Prepaid plans have grown to account for nearly 30% of the market, as more consumers seek to control costs. For most budgets, a mid-range prepaid plan is the most cost-effective choice, while postpaid is best for those who want premium features and device upgrades.