Cost of Living: Amarillo, TX vs Tempe, AZ (2026)

Amarillo

Texas
69
VS

Tempe

Arizona
120

Amarillo is 51% cheaper than Tempe.

$1,049/mo ↓ 35%
Median Rent
$1,623/mo ↑ 55%
$62,469/yr ↓ 20%
Median Income
$77,643/yr ↑ 24%
$186,800 ↓ 56%
Home Value
$421,900 ↑ 126%
$1,074/mo ↓ 31%
Owner Costs
$1,554/mo ↑ 45%
200,945
Population
186,419

Tax Comparison

0%
Income Tax
2.5%
6.25%
Sales Tax
5.6%
1.6%
Property Tax
0.62%

Affordability

20.2%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing Amarillo, TX and Tempe, AZ, the overall cost of living indices are 69 and 120 respectively (national median = 100). Rent is $574/month cheaper in Amarillo, saving renters about $6,888/year.

Median household income is $15,174/year higher in Tempe. Home values also differ significantly — the median in Amarillo is $186,800 compared to $421,900 in Tempe.

Texas has no state income tax, giving Amarillo residents a significant tax advantage over Arizona's 2.5% rate.

Frequently Asked Questions

Amarillo vs Tempe — common questions

Is Amarillo or Tempe cheaper to live in?
Based on our cost index, Amarillo is cheaper to live in with an index of 69 compared to 120 (US average = 100).
What is the rent difference between Amarillo and Tempe?
Median rent in Amarillo is $1,049/month and in Tempe it's $1,623/month — a difference of $574/month.
Which city has higher income, Amarillo or Tempe?
Median household income is $62,469 in Amarillo and $77,643 in Tempe. Median household income is $15,174/year higher in Tempe.
How do taxes compare between Texas and Arizona?
Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax. Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax.
Should I move to Amarillo or Tempe?
It depends on your priorities. Amarillo has a cost index of 69 with median rent of $1,049/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.
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