Cost of Living: Albuquerque, NM vs Tempe, AZ (2026)

Albuquerque

New Mexico
80
VS

Tempe

Arizona
120

Albuquerque is 33% cheaper than Tempe.

$1,085/mo ↓ 33%
Median Rent
$1,623/mo ↑ 50%
$65,604/yr ↓ 16%
Median Income
$77,643/yr ↑ 18%
$266,700 ↓ 37%
Home Value
$421,900 ↑ 58%
$1,149/mo ↓ 26%
Owner Costs
$1,554/mo ↑ 35%
562,488
Population
186,419

Tax Comparison

5.9%
Income Tax
2.5%
5.0%
State Sales Tax
5.6%
0.67%
Property Tax
0.62%

Affordability

19.8%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing Albuquerque, NM and Tempe, AZ, the overall cost of living indices are 80 and 120 respectively (national median = 100). Rent is $538/month cheaper in Albuquerque, saving renters about $6,456/year.

Median household income is $12,039/year higher in Tempe. Home values also differ significantly — the median in Albuquerque is $266,700 compared to $421,900 in Tempe.

Arizona has a lower income tax rate, making Tempe slightly more tax-friendly.

Frequently Asked Questions

Albuquerque vs Tempe — common questions

Is Albuquerque or Tempe cheaper to live in?
Based on our cost index, Albuquerque is cheaper to live in with an index of 80 compared to 120 (US average = 100).
What is the rent difference between Albuquerque and Tempe?
Median rent in Albuquerque is $1,085/month and in Tempe it's $1,623/month — a difference of $538/month.
Which city has higher income, Albuquerque or Tempe?
Median household income is $65,604 in Albuquerque and $77,643 in Tempe. Median household income is $12,039/year higher in Tempe.
How do taxes compare between New Mexico and Arizona?
New Mexico has 5.9% income tax, 5.0% sales tax, and 0.67% property tax. Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax.
Should I move to Albuquerque or Tempe?
It depends on your priorities. Albuquerque has a cost index of 80 with median rent of $1,085/mo, while Tempe has a cost index of 120 with rent of $1,623/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Albuquerque details → View Tempe details →

More Comparisons

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