Arizona · Population 1,624,832 · Updated March 2026
How far your income goes in Phoenix
State-level tax rates that affect your costs
Phoenix is more expensive than the national average. Higher housing costs are typically the primary driver. With a cost index of 109 (where 100 equals the national median), Phoenix residents can expect to pay median rent of $1,458/month while earning a median household income of $77,041/year.
The median home value in Phoenix, AZ is $381,900, with typical monthly owner costs around $1,430 including mortgage, insurance, and taxes. The median rent-to-income ratio of 22.7% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.
Arizona has a moderate income tax rate of 2.5%. Combined with a 5.6% sales tax rate and 0.62% effective property tax rate, the overall tax environment is a factor in the total cost of living in Phoenix.
Common questions about living costs in Phoenix