Cost of Living in Tempe, AZ
Tempe is about 19% more expensive than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Tempe at a Glance
On the median income of $78,044, state income tax is roughly $1,951/year.
Sources: Census ACS 2024, Tax Foundation.
Tempe is home to Arizona State University, the largest public university in the US. Mill Avenue downtown is walkable with restaurants and bars. Tempe Town Lake provides urban waterfront recreation in the desert. ASU's growth has brought tech companies and startups.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Tempe
ASU's 80,000+ students create restaurants, nightlife, and cultural events. Mill Avenue is walkable. Arizona's 2.5% income tax is very low. Light rail connects to Phoenix and Mesa.
Neighborhoods
Downtown/Mill Avenue is the walkable core. Maple-Ash is historic near downtown. South Tempe is suburban and family-friendly. Papago Park borders Tempe with desert hiking.
Things to Consider
Student population means noise in some areas. Summer heat exceeds 110 degrees. Housing has become expensive relative to other Phoenix suburbs. The party-school reputation persists.
Frequently Asked Questions About Tempe
ASU dominates but Tempe has matured. Tech companies have established presences. Young professionals who stayed after graduation have created a post-college community with genuine urban amenities.
As hot as Phoenix: 110+ degrees common in summer. Dry heat, but still dangerous. Summer outdoor activity is limited to early morning and evening.
Mid-range for the Phoenix metro. Below Scottsdale, above Mesa. By national college-town standards, very affordable compared to Austin, Boulder, or Ann Arbor.