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

Laredo

Texas
67
VS

Tempe

Arizona
120

Laredo is 44% cheaper than Tempe.

$1,001/mo ↓ 38%
Median Rent
$1,623/mo ↑ 62%
$63,264/yr ↓ 19%
Median Income
$77,643/yr ↑ 23%
$182,400 ↓ 57%
Home Value
$421,900 ↑ 131%
$1,066/mo ↓ 31%
Owner Costs
$1,554/mo ↑ 46%
255,949
Population
186,419

Tax Comparison

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

Affordability

19.0%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing Laredo, TX and Tempe, AZ, the overall cost of living indices are 67 and 120 respectively (national median = 100). Rent is $622/month cheaper in Laredo, saving renters about $7,464/year.

Median household income is $14,379/year higher in Tempe. Home values also differ significantly — the median in Laredo is $182,400 compared to $421,900 in Tempe.

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

Frequently Asked Questions

Laredo vs Tempe — common questions

Is Laredo or Tempe cheaper to live in?
Based on our cost index, Laredo is cheaper to live in with an index of 67 compared to 120 (US average = 100).
What is the rent difference between Laredo and Tempe?
Median rent in Laredo is $1,001/month and in Tempe it's $1,623/month — a difference of $622/month.
Which city has higher income, Laredo or Tempe?
Median household income is $63,264 in Laredo and $77,643 in Tempe. Median household income is $14,379/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 Laredo or Tempe?
It depends on your priorities. Laredo has a cost index of 67 with median rent of $1,001/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 Laredo details → View Tempe details →

More Comparisons

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