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

Tempe

Arizona
120
VS

Waco

Texas
72

Tempe is 67% more expensive than Waco.

$1,623/mo ↑ 48%
Median Rent
$1,098/mo ↓ 32%
$77,643/yr ↑ 51%
Median Income
$51,468/yr ↓ 34%
$421,900 ↑ 111%
Home Value
$199,600 ↓ 53%
$1,554/mo ↑ 42%
Owner Costs
$1,094/mo ↓ 30%
186,419
Population
141,925

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
25.6%
rent-to-income

Detailed Comparison

When comparing Tempe, AZ and Waco, TX, the overall cost of living indices are 120 and 72 respectively (national median = 100). Rent is $525/month cheaper in Waco, saving renters about $6,300/year.

Median household income is $26,175/year higher in Tempe. Home values also differ significantly — the median in Tempe is $421,900 compared to $199,600 in Waco.

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

Frequently Asked Questions

Tempe vs Waco — common questions

Is Tempe or Waco cheaper to live in?
Based on our cost index, Waco is cheaper to live in with an index of 72 compared to 120 (US average = 100).
What is the rent difference between Tempe and Waco?
Median rent in Tempe is $1,623/month and in Waco it's $1,098/month — a difference of $525/month.
Which city has higher income, Tempe or Waco?
Median household income is $77,643 in Tempe and $51,468 in Waco. Median household income is $26,175/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 Waco?
It depends on your priorities. Tempe has a cost index of 120 with median rent of $1,623/mo, while Waco has a cost index of 72 with rent of $1,098/mo. Consider income potential, tax burden, and lifestyle preferences alongside raw cost data.
View Tempe details → View Waco details →

More Comparisons

Other cost of living comparisons for Tempe and Waco

Tempe vs. Brownsville Tempe vs. Paradise Tempe vs. Akron Tempe vs. Mobile Tempe vs. Providence Tempe vs. Newport News Waco vs. Visalia Waco vs. Fullerton Waco vs. Thornton Waco vs. Metairie Waco vs. Torrance Waco vs. Orange