97% of American adults own a cell phone as of 2026, with 91% owning a smartphone. The remaining 6% use a basic feature phone. Ownership is nearly universal across all demographics.
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97% of American adults own a cell phone in 2026, according to the most recent Pew Research Center survey. Among those, 91% own a smartphone capable of internet browsing, app use, and advanced features. The remaining 6% rely on basic feature phones for calls and texts only. For households, the FCC reports that 99% of U.S. homes have at least one cell phone, and 35% are wireless-only—meaning they have no landline at all. These numbers have held steady since 2020, showing that cell phone adoption has effectively saturated the market.
Ownership by Age and Income
While overall ownership is near-universal, gaps remain by age and household income. Smartphone ownership among adults aged 18–49 is 99%, while for those 65 and older it drops to 83%. Similarly, households earning less than $30,000 per year have a smartphone ownership rate of 78%, compared to 98% for those earning $100,000 or more. Basic phone ownership is highest among seniors and lower-income groups. These differences matter when choosing a plan: older users may prefer simpler, cheaper feature phones, while younger users typically need data-heavy smartphone plans.
| Demographic | Smartphone Ownership | Basic Phone Only |
|---|---|---|
| Ages 18–49 | 99% | 1% |
| Ages 50–64 | 92% | 5% |
| Ages 65+ | 83% | 14% |
| Income < $30k | 78% | 18% |
| Income $100k+ | 98% | 1% |
What Americans Pay for Cell Service
With nearly everyone owning a phone, the cost of service is a major household expense. The average monthly cell phone bill in the U.S. is $121, according to the Bureau of Labor Statistics Consumer Expenditure Survey (2025 data). This includes the cost of the plan plus taxes, fees, and surcharges. Taxes and fees alone add an average of 18% to the base plan price, per the Tax Foundation. For a $70 plan, that means roughly $12.60 in extra charges each month. Annual wireless spending now exceeds $1,450 per household, making it one of the top five utility-like expenses.
Prepaid Versus Postpaid Trends
As of 2026, approximately 30% of U.S. wireless subscribers use prepaid plans, while 70% are on postpaid (contract or monthly bill) plans. Prepaid adoption has grown steadily from 25% in 2020, driven by budget-conscious consumers and the availability of high-speed data on budget providers. The average prepaid plan costs $35–$50 per month, compared to $70–$90 for postpaid. However, postpaid plans often include device financing, international features, and premium customer support. For many households, mixing a postpaid plan for heavy data users with a prepaid line for light users can cut the total bill by 30% or more.
- Prepaid share of market: 30% (up from 25% in 2020)
- Average prepaid monthly cost: $35–$50
- Average postpaid monthly cost: $70–$90
- Households with multiple lines: 60% use mixed prepaid/postpaid
How to Find the Right Plan for Your Budget
Because 97% of Americans already own a phone, the key decision is not whether to get one, but how to pay for service without overspending. Start by checking your actual data usage (most users need only 5–15 GB per month). Compare the total cost including taxes and fees—not just the advertised price. For light users, a prepaid plan from a budget provider can save $50–$80 monthly versus a premium postpaid plan. For families, multi-line discounts on postpaid plans often bring the per-line cost below $40. Always read the fine print on auto-pay discounts, which can lower your bill by $5–$10 per line. Finally, consider bringing your own device to avoid installment payments that add $20–$40 per month to your bill.
- Check your average monthly data usage via your phone’s settings.
- Compare total monthly cost (plan + taxes + fees) across at least three providers.
- Ask about multi-line or family discounts if you have more than one line.
- Use a compatible unlocked phone to avoid device financing charges.