Cost of Living for Arizona (2026)
Arizona (AZ) Key Facts
Cost of Living Index
103
National Average Index
100
Median Household Income
$65,000
Approximate Median Rent (1 B R)
$1,100/month
State Income Tax Rate
2.5%
How This Calculator Works in Arizona
This cost of living calculator helps you compare salaries between Arizona and other states or cities by adjusting for purchasing power differences. Enter a salary and a target location to see what equivalent income you would need. It uses Arizona's cost of living index of 103 relative to the national average of 100 to provide an accurate comparison.
Arizona Overview
Arizona has a cost of living index of 103, where 100 represents the national average. Arizona's cost of living is near the national average overall, though the Phoenix metro area has seen rapid housing price appreciation in recent years. The median household income is $65,000, which has a purchasing power equivalent of approximately $63,107 in an average-cost location.
How Arizona Compares
Arizona's cost of living index of 103 compares to New Mexico's 93 and Utah's 101. Residents in Arizona generally need higher incomes to maintain the same standard of living as those in more affordable states. The most affordable states like Mississippi (84) cost roughly 23% less than Arizona, while the most expensive like Hawaii (192) cost 86% more.
| State | Top Rate | Notes |
|---|---|---|
| New Mexico | COL Index: 93 | New Mexico has a cost of living index of 93 and a median household income of $53,000. It is more affordable than Arizona. |
| Utah | COL Index: 101 | Utah has a cost of living index of 101 and a median household income of $75,000. It is more affordable than Arizona. |
| Nevada | COL Index: 104 | Nevada has a cost of living index of 104 and a median household income of $65,000. It is more expensive than Arizona. |
The national average cost of living index is 100. Arizona's index of 103 is near the national average. States like Mississippi (84) and West Virginia (84) have the lowest cost of living, while Hawaii (192) and DC (148) have the highest. Arizona's median household income of $65,000 should be evaluated alongside its cost of living to understand real purchasing power.
Tips for Arizona Residents
- 1Arizona's cost of living is near the national average overall, though the Phoenix metro area has seen rapid housing price appreciation in recent years.
- 2Arizona's median household income of $65,000 has a real purchasing power of about $63,107 when adjusted to the national average. Compare this figure, not the raw salary, when evaluating cross-state moves or job offers.
- 3Arizona's top state income tax rate of 2.5% further reduces purchasing power beyond what the cost of living index alone shows. Factor in taxes when making state-to-state comparisons.
- 4When comparing job offers between states, adjust salaries by the cost of living index. A $60,000 salary in a state with an index of 90 provides more purchasing power than $70,000 in a state with an index above 105.
- 5Look beyond the state average — costs can vary dramatically within Arizona between metro areas, suburbs, and rural communities. Research the specific city or county where you would live.