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

Tempe

Arizona
120
VS

McAllen

Texas
66

Tempe is 82% more expensive than McAllen.

$1,623/mo ↑ 60%
Median Rent
$1,017/mo ↓ 37%
$77,643/yr ↑ 29%
Median Income
$60,165/yr ↓ 23%
$421,900 ↑ 143%
Home Value
$173,800 ↓ 59%
$1,554/mo ↑ 56%
Owner Costs
$996/mo ↓ 36%
186,419
Population
143,789

Tax Comparison

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

Affordability

25.1%
rent-to-income
Affordability
20.3%
rent-to-income

Detailed Comparison

When comparing Tempe, AZ and McAllen, TX, the overall cost of living indices are 120 and 66 respectively (national median = 100). Rent is $606/month cheaper in McAllen, saving renters about $7,272/year.

Median household income is $17,478/year higher in Tempe. Home values also differ significantly — the median in Tempe is $421,900 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

Tempe vs McAllen — common questions

Is Tempe or McAllen cheaper to live in?
Based on our cost index, McAllen is cheaper to live in with an index of 66 compared to 120 (US average = 100).
What is the rent difference between Tempe and McAllen?
Median rent in Tempe is $1,623/month and in McAllen it's $1,017/month — a difference of $606/month.
Which city has higher income, Tempe or McAllen?
Median household income is $77,643 in Tempe and $60,165 in McAllen. Median household income is $17,478/year higher in Tempe.
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 Tempe or McAllen?
It depends on your priorities. Tempe has a cost index of 120 with median rent of $1,623/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 Tempe details → View McAllen details →

More Comparisons

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