Arizona, known as the "Grand Canyon State", is a fast-growing Sun Belt state with costs slightly above national average. Here is everything you need to know about the cost of living in the Grand Canyon State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Arizona for a single person earning the median income of $65,600/year:
Each category shows how Arizona compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Arizona.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Arizona.
The most popular cities for residents and newcomers in Arizona:
Housing is the single biggest expense in Arizona, as it is everywhere. The median home price in Arizona is $415,000, and the median rent for a one-bedroom apartment is $1,350/month. With a housing cost index of 107, Arizona housing is 7% more expensive than the national average.
Housing costs in Arizona are above average but manageable for households earning the median income. The 30% rule (spend no more than 30% of gross income on housing) is achievable in most areas.
Arizona has a state income tax rate of 2.5%. On the median household income of $65,600, you will pay approximately $1,640/year in state income tax ($137/month). This is below the national average — a tax advantage for Arizona residents.
The average single person in Arizona spends approximately $410/month on groceries. A family of four can expect to spend $1,025-$1,230/month. The food cost index of 97 means groceries in Arizona are 3% below the national average.
Gas prices in Arizona average $3.35/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $2,010/year in fuel costs.
Arizona healthcare costs are 5% below the national average (index: 95). The average annual healthcare cost per person in Arizona is approximately $5,700 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Arizona averages $950/month ($11,400/year). This is a substantial but manageable expense for dual-income households. Many families in Arizona find that one parent staying home is more cost-effective when two or more children need daycare.
Arizona offers a solid balance of cost, opportunity, and quality of life. With costs near the national average, you get access to growing job markets in Phoenix and Tucson, and a cost of living that leaves room for saving and investing.
See all Arizona financial calculators:
Arizona (AZ) has a cost of living index of 103, meaning it is 3% more expensive than the US average. Housing is the biggest factor with an index of 107. The median rent is $1,350/month and the median home price is $415,000. Arizona ranks #30 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Arizona is approximately $85,280/year ($7,107/month). For a family of four, aim for $144,320/year. This covers housing at 30% of income, groceries ($410/mo), transportation, healthcare, and a 15% savings rate. The median household income in Arizona is $65,600.
The median rent for a one-bedroom apartment in Arizona is approximately $1,350/month. A two-bedroom averages $1,823/month. Rent varies significantly by city: Phoenix, Tucson, Mesa are the most popular metro areas. Housing costs in Arizona are above average — budget carefully.
Arizona offers a balanced lifestyle with costs near the national average. Growing job markets in Phoenix and Tucson attract new residents.
The most affordable areas in Arizona are typically smaller cities and rural areas away from the major metros. Within Arizona, costs can vary 20-40% between the most expensive city (Phoenix metro) and more affordable areas. Scottsdale and Chandler tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Arizona for a single person is approximately $410 ($1,025 for a family of four). Arizona food costs are 3% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Arizona is approximately $165. Total utilities (electric, gas, water, internet) average $363/month. Arizona utilities are 3% above the national average. Utility costs are manageable for most households.
Arizona has a state income tax rate of 2.5%. On the median household income of $65,600, that is approximately $1,640/year in state income tax. This is below the national average — a tax advantage.