Cost of Living: San Jose, CA vs Tempe, AZ (2026)

San Jose

California
254
VS

Tempe

Arizona
120

San Jose is 112% more expensive than Tempe.

$2,617/mo ↑ 61%
Median Rent
$1,623/mo ↓ 38%
$141,565/yr ↑ 82%
Median Income
$77,643/yr ↓ 45%
$1,187,800 ↑ 182%
Home Value
$421,900 ↓ 64%
$2,775/mo ↑ 79%
Owner Costs
$1,554/mo ↓ 44%
990,054
Population
186,419

Tax Comparison

13.3%
Income Tax
2.5%
7.25%
State Sales Tax
5.6%
0.71%
Property Tax
0.62%

Affordability

22.2%
rent-to-income
Affordability
25.1%
rent-to-income

Detailed Comparison

When comparing San Jose, CA and Tempe, AZ, the overall cost of living indices are 254 and 120 respectively (national median = 100). Rent is $994/month cheaper in Tempe, saving renters about $11,928/year.

Median household income is $63,922/year higher in San Jose. Home values also differ significantly — the median in San Jose is $1,187,800 compared to $421,900 in Tempe.

Arizona has a lower income tax rate, making Tempe slightly more tax-friendly.

Frequently Asked Questions

San Jose vs Tempe — common questions

Is San Jose or Tempe cheaper to live in?
Based on our cost index, Tempe is cheaper to live in with an index of 120 compared to 254 (US average = 100).
What is the rent difference between San Jose and Tempe?
Median rent in San Jose is $2,617/month and in Tempe it's $1,623/month — a difference of $994/month.
Which city has higher income, San Jose or Tempe?
Median household income is $141,565 in San Jose and $77,643 in Tempe. Median household income is $63,922/year higher in San Jose.
How do taxes compare between California and Arizona?
California has 13.3% income tax, 7.25% sales tax, and 0.71% property tax. Arizona has 2.5% income tax, 5.6% sales tax, and 0.62% property tax.
Should I move to San Jose or Tempe?
It depends on your priorities. San Jose has a cost index of 254 with median rent of $2,617/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 San Jose details → View Tempe details →

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