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

Phoenix

Arizona
109
VS

McAllen

Texas
66

Phoenix is 65% more expensive than McAllen.

$1,458/mo ↑ 43%
Median Rent
$1,017/mo ↓ 30%
$77,041/yr ↑ 28%
Median Income
$60,165/yr ↓ 22%
$381,900 ↑ 120%
Home Value
$173,800 ↓ 54%
$1,430/mo ↑ 44%
Owner Costs
$996/mo ↓ 30%
1,624,832
Population
143,789

Tax Comparison

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

Affordability

22.7%
rent-to-income
Affordability
20.3%
rent-to-income

Detailed Comparison

When comparing Phoenix, AZ and McAllen, TX, the overall cost of living indices are 109 and 66 respectively (national median = 100). Rent is $441/month cheaper in McAllen, saving renters about $5,292/year.

Median household income is $16,876/year higher in Phoenix. Home values also differ significantly — the median in Phoenix is $381,900 compared to $173,800 in McAllen.

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

Frequently Asked Questions

Phoenix vs McAllen — common questions

Is Phoenix or McAllen cheaper to live in?
Based on our cost index, McAllen is cheaper to live in with an index of 66 compared to 109 (US average = 100).
What is the rent difference between Phoenix and McAllen?
Median rent in Phoenix is $1,458/month and in McAllen it's $1,017/month — a difference of $441/month.
Which city has higher income, Phoenix or McAllen?
Median household income is $77,041 in Phoenix and $60,165 in McAllen. Median household income is $16,876/year higher in Phoenix.
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 McAllen?
It depends on your priorities. Phoenix has a cost index of 109 with median rent of $1,458/mo, while McAllen has a cost index of 66 with rent of $1,017/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Phoenix details → View McAllen details →

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