Cost of Living in Arizona
Things cost about the same here as the national average.
What Things Cost in Arizona
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Arizona sits right around the national average for cost of living, which tells only part of the story. The state has been one of the fastest-growing in the country over the past decade, fueled by Californians and other high-cost-state refugees who find that their money stretches further in the Phoenix metro. That migration has pushed up housing costs, particularly in Scottsdale and parts of Phoenix, but Tucson and smaller cities remain genuinely affordable. The state flattened its income tax to a single 2.5% rate in 2023, making it one of the most tax-friendly states for high earners.
Arizona at a Glance
Taxes in Arizona
Arizona's state income tax tops out at 2.5% flat. The combined sales tax averages 5.6%. Property taxes run about 0.51% of home value, which on a $368,800 median home means roughly $1,881/year.
Cities in Arizona
Ranked from least to most expensive. Index 100 = national average.
Explore Arizona
FAQ About Arizona
Significantly. Arizona's overall cost of living is about 1% above the national average, while California runs 30-40% above depending on the city. Housing is the biggest difference: the median home in Phoenix costs roughly $454,900 compared to $760,000 in Los Angeles or $1.35 million in San Francisco. Arizona's flat 2.5% income tax rate versus California's top rate of 13.3% means thousands more in annual take-home pay.
Arizona has a flat income tax rate of 2.5% as of 2023. This applies to all taxable income regardless of amount. Before the flat tax was implemented, the state had graduated brackets with rates up to 4.5%. The flat rate makes Arizona one of the lowest income-tax states in the country for middle and upper-income earners.
Tucson is the most affordable major city in the state, with a cost of living below the national average and median home prices around $299,700. Casa Grande, Sierra Vista, and Yuma offer even lower costs. Phoenix and its suburbs (Mesa, Chandler, Gilbert) sit near the state average. Scottsdale is the most expensive area, with housing costs well above the Phoenix metro average.