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

Dallas

Texas
97
VS

Tempe

Arizona
120

Dallas is 19% cheaper than Tempe.

$1,403/mo ↓ 14%
Median Rent
$1,623/mo ↑ 16%
$67,760/yr ↓ 13%
Median Income
$77,643/yr ↑ 15%
$295,300 ↓ 30%
Home Value
$421,900 ↑ 43%
$1,409/mo ↓ 9%
Owner Costs
$1,554/mo ↑ 10%
1,299,553
Population
186,419

Tax Comparison

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

Affordability

24.8%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing Dallas, TX and Tempe, AZ, the overall cost of living indices are 97 and 120 respectively (national median = 100). Rent is $220/month cheaper in Dallas, saving renters about $2,640/year.

Median household income is $9,883/year higher in Tempe. Home values also differ significantly — the median in Dallas is $295,300 compared to $421,900 in Tempe.

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

Frequently Asked Questions

Dallas vs Tempe — common questions

Is Dallas or Tempe cheaper to live in?
Based on our cost index, Dallas is cheaper to live in with an index of 97 compared to 120 (US average = 100).
What is the rent difference between Dallas and Tempe?
Median rent in Dallas is $1,403/month and in Tempe it's $1,623/month — a difference of $220/month.
Which city has higher income, Dallas or Tempe?
Median household income is $67,760 in Dallas and $77,643 in Tempe. Median household income is $9,883/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 Dallas or Tempe?
It depends on your priorities. Dallas has a cost index of 97 with median rent of $1,403/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 Dallas details → View Tempe details →

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