Tempe cost of living index

In the event that the cost of living data was unavailable for this city, estimates based upon nearby cities were used. Each cost of living index is based on a national average of 100. If the amount is below 100, it is lower than the national average. If the amount is above 100, it is higher than the national average.
Cost of living index10097100
Goods & Services index9797100
Groceries index95100100
Health care index96100100
Housing index10994100
Transportation index101102100
Utilities index9598100
Here we can see a simple outline of the cost of living in Tempe, AZ. As you can see, with the average cost of living in Tempe, AZ being 100, that puts it 3% higher than the average of Arizona and equal to our nation's average. This simple outline of the cost of living index was formulated using prices of: goods and services (weighted 33%), housing prices (weighted 30%), groceries (weighted 13%), utilities (weighted 10%), transportation (weighted 9%), and health care (weighted 5%). Thus, goods/services, along with housing influences the majority of the cost of living index. The price of daily goods and services is a valuable and reliable number to be aware of when considering the general price of the city's goods. In the case of Tempe, AZ, the price of goods and services are 1% lower than the average of Arizona as well as 4% lower than the nation's average.

Did you know?

  • The cost of living in Tempe is 3% higher than the Arizona average.
  • The cost of living in Tempe is equal to the national average.
  • The cost of housing in Tempe is 9% higher than the national average.
  • Arizona general sales tax is 10% higher than the national average.
  • Arizona state income tax is 16% higher than the national average.

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Salary Calculator

This is how much you would need to earn in
Price difference in compared to
Cost of living index
Goods & Services index
Groceries index
Health care index
Housing index
Transportation index
Utilities index
Use the salary calculator to compare your current salary in Tempe, AZ to any other city. The salary calculator will tell you how much you would need to earn in any given city to maintain the same standard of living based on the cost of living in each city. For example, if the cost of living in the city you are looking to relocate to is higher than the cost of living in Tempe, AZ, then you would need to earn more income in order to maintain the same standard of living. To use the Tempe, AZ salary calculator, simply enter in the name of the new city, then adjust the slider to your current income. The salary calculator will do the rest and let you know if you need to earn more or less in the new city. You will also see a complete breakdown of the cost of living.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
The affordability of the housing market in Tempe, AZ as well as the overall cost of living can be indicated accurately by what percent of the monthly income is spent on housing related costs. This is konwn as the debt-to-income ratio (DTI). The overall rule of thumb is that no more than 28% of your gross income should ever be used on the overall costs related to housing and no more than 36% of gross income on all expenses and debts. Among Tempe, AZ homeowners, the median income is $72,387. This indicates that a monthly maximum of $1,689 should be spent by homeowners on all housing related costs. Renters have a median income of $34,666. This indicates that renters should have a maximum of $809 used for their rent related monthly costs.

Arizona Sales Tax

StateGeneral Sales TaxWith Max Surtax

Arizona Income Tax

StateIncome Tax (Low)Income Tax (High)
When assessing the complete cost of living in Tempe, AZ, the Arizona income tax and the Arizona sales tax percentages should unquestionably be taken into consideration. Sales taxes aren't just levies imposed onto sold goods, but they also include taxes that are charged when services are provided for a fee. The rates are different from state to state and can run has high as 7 percent. Some states have no sales tax at all. The Arizona maximum surtax is 10.725%, and the Arizona sales tax is 5.6%. By contrast, income tax is an unfortunate obligation that is charged by the government against earnings. Just like sales taxes, the rates for income taxes differ from state to state. They also decrease or increase according to the individual's tax bracket. Tax rates can run as high as 9 percent, with a minimum of zero. Income tax rates range from 2.59% to 4.54% in Arizona.

Goods & Services

ItemTempeNational avg.Difference
Haircut $13.50$15.5613.3%
Beauty Salon $29.50$36.1118.3%
Toothpaste $1.60$2.4735.4%
Shampoo $0.93$0.963.3%
Movie $9.19$10.139.2%
Bowling $8.16$4.7472.3%


ItemTempeNational avg.Difference
Ground Beef $4.02$3.981.0%
Fried Chicken $1.57$1.4111.6%
Milk $1.60$2.0622.5%
Potatoes $2.94$2.981.5%
Pizza $8.73$9.477.8%
Beer $8.26$8.796.1%

Health Care

ItemTempeNational avg.Difference
Optometrist $80.88$101.0420.0%
Doctor $99.67$107.447.2%
Dentist $91.00$90.420.6%
Ibuprofen $7.99$9.2813.9%
Lipitor $437.96$426.502.7%


ItemTempeNational avg.Difference
Home Price $197,200.00$175,700.0012.2%
Avg. Mortgage Payment $1,122.75$1,133.230.9%
Apartment Rent $941.00$920.002.3%


ItemTempeNational avg.Difference
Gasoline $2.17$1.999.1%
Tire Balancing $38.00$45.7617.0%


ItemTempeNational avg.Difference
All Electricity$185.91$163.8113.5%
Phone $19.99$28.3929.6%
Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

Nearby cities with low cost of living

City, StatePopulationCost of Living IndexNational Avg.
Santa Cruz, AZ097-3%
Komatke, AZ1,41883-17%
Guadalupe, AZ5,89283-17%
Maricopa Colony, AZ54791-9%
Glendale, AZ231,97893-7%
Tempe, AZ166,9751000%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Ontario, CA166,89212121%
Vancouver, WA165,55411010%
Port St. Lucie, FL169,2601000%
Rancho Cucamonga, CA170,17013636%
Santa Rosa, CA170,78214242%
Tempe, AZ166,9751000%
Source: The Tempe, AZ cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for the fourth quarter of 2016.