Cellphone costs: Average price of a U.S. mobile plan is $141

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Key facts

• The average cost of a cellphone plan in the U.S. is $141
• Illinois has the highest wireless tax rate, at 36%
• Idaho has the lowest wireless tax rate, at 16%

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Having access to the internet has essentially become a requirement for accessing our data, our jobs and even our offline social circles. Our cellphones give us that access in the palms of our hands, anywhere, anytime, so it’s no wonder most folks would rather give up home internet than their phone if forced to choose.

With prices rising on the cellphones and mobile plans, how much does the average mobile plan cost these days?

According to J.D. Power, the average cellphone bill is $141/mo. At almost $1,700 per year, it’s not an insignificant cost. It pays to look for deals, promotions, discounts and bundle savings to trim that cost.

Major national mobile networks

Factors affecting your mobile plan’s final cost

Of course, your plan’s final cost will vary due to several factors that might be different for you.

Number of devices on the plan

This is the largest variable that could increase the average cost of a wireless plan. Additional lines cost anywhere from $30 to $60 to add to a plan. For example, a plan with four people would cost around $190 and a plan with five would be over $220 with unlimited data.

Device choice

The type of smartphone you pick can also drive up your monthly bill. If you need the latest tech for a cellphone camera, extended battery life or the newest market gadget, like a foldable phone, be prepared to pay a bit more each month.

Some providers break up your device price over your contract term, so you pay that cost monthly, which adds to your final bill. 

If you value money over having the latest tech, look for plans that include a phone — those will save you the most money.

Wireless taxes and local fees can vary by state and city

Like your cable and internet bill, several taxes are levied on carriers to help build and maintain local infrastructure. They then pass those fees on to us, of course, but they vary by state. The best deal to find is one that says taxes and fees are included in the advertised price. This way, you don’t have sticker shock with your first monthly payment. 

Where you live matters to the bottom line. If you’re in Illinois, you should know that your state has the highest wireless state tax at 23.24% for a total of 36.00% tax on your monthly plan.

Cellphone advertised prices and fees

The monthly advertised price is often an eye-catcher, like $15 or $30/mo. Read the fine print, though, as that price may not include the various fees other than taxes that can be tacked on: 

• Early termination fees ($150 to $300)
• Roaming and international fees (varies)
• New phone activation fees (typically $20 to $40 per device, sometimes waived)

Bundling internet and phone

Several internet service providers (ISPs) also offer mobile phone plans, using the coverage of larger cell carriers like Verizon and T-Mobile.

It can be a cost savings to combine both services. The only catch is that for most ISP mobile plans, you have to be an internet customer. Optimum is open to non-internet customers, but there will be a surcharge. 

Other cellphone plan discounts

If you’re a senior, military veteran or student, or qualify for other low-income assistance programs, you’re likely qualified for a discount on your cellphone plan. Some programs available include:

• AT&T Lifeline
• SafeLink Wireless
• T-Mobile Lifeline
• Verizon Lifeline

Alternative plan options

If you want the cheapest phone plans available, your best option may be a mobile virtual network operator (MVNO) like RedPocket and Mint Mobile.

These carriers have agreements with larger providers like Verizon, AT&T and T-Mobile to use their infrastructure to provide service to their own specific customers. MVNO costs are lower since they do not have the expense of cell tower construction, upkeep, etc. A potential downside of signing up with an MVNO is that their customers are often deprioritized by the larger network during high-volume times, so your service may see periods of slowdowns.

Finding the best mobile plan for your needs

Our internet and phone experts can help save you money when purchasing a mobile plan. If you have an internet plan with AT&T, Verizon, T-Mobile, Optimum, Spectrum or Xfinity, you may be able to save money by bundling it with their mobile phone plans.

Not sure if you are serviceable by one of these ISPs? Check your ZIP code to see if you can save a bundle while bundling.

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