A-
6%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
30%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Phoenix Arizona National
Cost of living106101100
Goods & Services91104100
Groceries104102100
Health care9494100
Housing13097100
Transportation102106100
Utilities9995100

An Overview of Cost of Living in Phoenix, AZ

Understanding the cost of living in Phoenix can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Phoenix cost of living index is 106, which is 6% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

The cost of living in Phoenix is about average when compared to all other cities across the nation. You can expect that everyday items like food, goods and services and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.

Housing costs are a very significant part of the Phoenix cost of living index and generally encompass a large percentage of take-home income. Unfortunately, in this area, the housing costs for both homes and rentals were 29.8% more than the average city. This includes things like home and rent prices, mortgage rates and insurance.

What Do Locals Say About the Cost of Living in Phoenix?

Locals have the inside scoop on their city. So, we polled 34 residents in Phoenix to learn how they view the cost of living. We asked how they felt about the cost of living in their area, and if they thought that prices were increasing, decreasing or staying the same. The verdict? 59% find it reasonable with decreasing prices, but 41% think it's quite pricey, with prices that continue to rise.

Is Phoenix Affordable?

Is Phoenix affordable? It's a key consideration when pondering a move, as affordability often shapes your choices. The cost of living index (we discussed it earlier), coupled with housing costs and income levels, serves as the cornerstone for determining a location's affordability. Take Phoenix, for instance, where the median home price falls 35.8% higher than the national average, and monthly rent rates are 15.9% higher than usual. Additionally, median income levels contribute to the equation, with Phoenix flaunting a median household income of $60,914, 10.1% higher than the national norm.

What Factors can Influence the Cost of Living in Phoenix?

Transportation: When public transportation options are limited or non-existent, residents frequently resort to vehicle ownership, which can significantly contribute to the overall cost of living. Monthly financial obligations encompass fuel, insurance, regular maintenance and potentially lease or financing expenses. In Phoenix, the transportation index is 2% higher than the national average.

Healthcare: Healthcare expenses and insurance premiums can vary significantly depending on the specific city or state. Factors such as accessibility to healthcare facilities, out-of-pocket expenses for doctor's visits, dental care expenses, prescription costs and specialized medical care fees can all influence the overall cost of living. In Phoenix, healthcare costs are 6% lower than the national average.

Taxes: Cities that enforce higher taxes, covering both sales taxes and income taxes, can be a factor contributing to a higher cost of living. Paying more in taxes for everyday essentials like clothing and food inevitably leads to higher expenses. A higher income tax rate can further contribute to an overall elevated cost of living. In Phoenix, the baseline sales tax rate begins at 5.6%, and income tax rates start at 2.55%.

Where is the Data From?

The Phoenix cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Phoenix is 6% higher than the Arizona average
  • The cost of living in Phoenix is 6% higher than the national average
  • Phoenix housing is 30% higher than the national average
  • Arizona general sales tax is 10% higher than the national average
  • Arizona state income tax is 4% lower than the national average

Most Affordable Places to Live in and Around Phoenix

See all the best places to live around Phoenix

Compare Phoenix, AZ Cost of Living

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      Salary Calculator

      This is how much you would need to earn in
      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$80,451$6,704$1,877$2,414
      Renters$43,866$3,656$1,023$1,316
      The affordability of the housing market in Phoenix, AZ as well as the overall cost of living can be predicted by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should be spent on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Phoenix homeowners, the median income is $80,451. This indicates that a monthly maximum of $1,877 should be spent by homeowners on all housing related costs. Renters have a median income of $43,866. This indicates that renters would have a maximum of $1,023 for their rent related monthly costs.

      Arizona Sales Tax

      State General Sales Tax With Max Surtax
      Arizona 5.6% 10.725%

      Arizona Income Tax

      State Income Tax (Low) Income Tax (High)
      Arizona 2.5% 2.5%

      Goods & Services

      Item Phoenix National avg. Difference
      Haircut $18.21$24.2624.9%
      Beauty Salon $55.83$45.5622.5%
      Toothpaste $3.54$3.704.3%
      Shampoo $1.32$1.283.3%
      Movie $9.71$12.1320.0%
      Bowling $21.97$18.0022.1%

      Groceries

      Item Phoenix National avg. Difference
      Ground Beef $6.17$5.845.6%
      Fried Chicken $1.41$1.5710.4%
      Milk $4.78$4.672.4%
      Potatoes $4.60$4.936.8%
      Pizza $12.12$12.090.2%
      Beer $11.51$10.4110.6%

      Health Care

      Item Phoenix National avg. Difference
      Optometrist $107.63$125.6814.4%
      Doctor $99.00$135.7827.1%
      Dentist $120.50$113.296.4%
      Ibuprofen $11.04$10.653.6%
      Lipitor $486.38$468.603.8%

      Housing

      Item Phoenix National avg. Difference
      Home Price $250,800.00$184,700.0035.8%
      Avg. Mortgage Payment $2,561.11$2,346.699.1%
      Apartment Rent $1,100.00$949.0015.9%

      Transportation

      Item Phoenix National avg. Difference
      Gasoline $3.54$3.462.3%
      Tire Balancing $60.83$59.921.5%

      Utilities

      Item Phoenix National avg. Difference
      All Electricity $193.93$193.990.0%
      Phone $186.48$192.253.0%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Santa Cruz, AZ57963.7%
      Komatke, AZ8858911.0%
      Guadalupe, AZ6,5729010.4%
      Gila Crossing, AZ659945.6%
      Youngtown, AZ6,8371000.3%
      Phoenix, AZ1,658,4221066.4%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Philadelphia, PA1,581,5311022.4%
      San Antonio, TX1,529,133955.5%
      Montréal, QC1,811,008n/a 
      San Diego, CA1,414,54516868.2%
      Calgary, AB1,371,990n/a 
      Phoenix, AZ1,658,4221066.4%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.