Cost of Living: Phoenix, AZ vs Austin, TX (2026)

Phoenix

Arizona
109
VS

Austin

Texas
134

Phoenix is 25% cheaper than Austin.

$1,458/mo ↓ 12%
Median Rent
$1,655/mo ↑ 14%
$77,041/yr ↓ 16%
Median Income
$91,461/yr ↑ 19%
$381,900 ↓ 26%
Home Value
$512,700 ↑ 34%
$1,430/mo ↓ 18%
Owner Costs
$1,747/mo ↑ 22%
1,624,832
Population
967,862

Tax Comparison

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

Affordability

22.7%
rent-to-income
Affordability
21.7%
rent-to-income

Detailed Comparison

When comparing Phoenix, AZ and Austin, TX, the overall cost of living indices are 109 and 134 respectively (national median = 100). Rent is $197/month cheaper in Phoenix, saving renters about $2,364/year.

Median household income is $14,420/year higher in Austin. Home values also differ significantly — the median in Phoenix is $381,900 compared to $512,700 in Austin.

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

Frequently Asked Questions

Phoenix vs Austin — common questions

Is Phoenix or Austin cheaper to live in?
Based on our cost index, Phoenix is cheaper to live in with an index of 109 compared to 134 (US average = 100).
What is the rent difference between Phoenix and Austin?
Median rent in Phoenix is $1,458/month and in Austin it's $1,655/month — a difference of $197/month.
Which city has higher income, Phoenix or Austin?
Median household income is $77,041 in Phoenix and $91,461 in Austin. Median household income is $14,420/year higher in Austin.
How do taxes compare between Arizona and Texas?
Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax. Texas has 0% income tax, 6.25% sales tax, and 1.6% property tax.
Should I move to Phoenix or Austin?
It depends on your priorities. Phoenix has a cost index of 109 with median rent of $1,458/mo, while Austin has a cost index of 134 with rent of $1,655/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
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