Phoenix 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 index9699100
Goods & Services index9198100
Groceries index10099100
Health care index8998100
Housing index9697100
Transportation index100104100
Utilities index107103100
A general overview of the cost of living index for Phoenix, AZ is displayed above. In Phoenix, AZ, the overall cost of living index is 96, which is 3% lower than the Arizona average and 4% lower than the U.S. average. The following categories are used to calculate the overall cost of living index: goods/services (33%), housing (30%), groceries (13%), utilities (10%), transportation (9%) and health care (5%). From the list, it is clear that the categories of goods/services and housing are responsible for the largest portions of the overall cost of living index. As a general rule, everyday goods and services provide an accurate measure of the general cost of goods in any given city. In the case of Phoenix, AZ, the city's goods and services are 7% lower than the Arizona average and 9% lower than the U.S. average.
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Did you know?

  • The cost of living in Phoenix is 3% lower than the Arizona average.
  • The cost of living in Phoenix is 4% lower than the national average.
  • The cost of housing in Phoenix is 4% lower 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.

Compare Phoenix, AZ Cost of living To Other Cities

Salary Calculator

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Goods & Services index
Groceries index
Health care index
Housing index
Transportation index
Utilities index
The salary calculator is used in order to provide a comparison of your current salary in Phoenix, AZ to another city of your choice. The calculator will inform you of what your salary needs to be in any specific city in order for you to maintain your living standard based on what the city’s cost of living is. As an example, if you are seeking to move to a city that has a higher cost of living compared to Phoenix, AZ, you would have to earn a higher income to maintain a standard of living that is similar. To get started with the Phoenix, AZ salary calculator, input the new city’s name and then move the slider to indicate your current income. The salary calculator will now process the numbers and show you whether you need to earn more or less in the chosen city. A comprehensive breakdown of the cost of living will also be shown.

Median Income & Debt-To-Income Ratio

Median IncomePer YearPer MonthMax Budget (28% DTI)Max Budget (36% DTI)
The affordability of the housing market in Phoenix, 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 Phoenix, AZ homeowners, the median income is $66,865. This indicates that a monthly maximum of $1,560 should be spent by homeowners on all housing related costs. Renters have a median income of $34,921. This indicates that renters should have a maximum of $815 used for their rent related monthly costs.

Arizona Sales Tax

StateGeneral Sales TaxWith Max Surtax

Arizona Income Tax

StateIncome Tax (Low)Income Tax (High)
One thing to keep in mind when considering the cost of living in Phoenix, AZ is the Arizona sales tax and Arizona income tax rates. Sales taxes are taxes that are collected on most goods or services sold. Sales taxes can vary by state and can be as high as 7% and as low as 0% as not every state imposes a sales tax. The Arizona sales tax rate is 5.6% and the maximum surtax that can be charged is 10.725%. Income tax is the tax imposed on income by both the federal and state government. The income tax rates varies by individual state and will also be higher or lower depending on the applicable tax bracket. The rates of state income tax can vary from 0% to more than 9%. The Arizona income tax rates range from 2.59% to 4.54%.

Goods & Services

ItemPhoenixNational avg.Difference
Haircut $15.10$17.4913.7%
Beauty Salon $42.88$38.1712.3%
Toothpaste $1.38$2.3240.5%
Shampoo $1.04$1.012.8%
Movie $8.63$10.7219.5%
Bowling $17.00$13.8622.6%


ItemPhoenixNational avg.Difference
Ground Beef $3.40$3.9012.8%
Fried Chicken $1.61$1.4015.4%
Milk $1.57$1.9620.0%
Potatoes $3.06$3.183.9%
Pizza $10.99$10.395.7%
Beer $8.98$9.232.7%

Health Care

ItemPhoenixNational avg.Difference
Optometrist $96.00$106.349.7%
Doctor $99.00$115.2514.1%
Dentist $88.00$98.3810.6%
Ibuprofen $7.49$9.2619.1%
Lipitor $457.00$466.472.0%


ItemPhoenixNational avg.Difference
Home Price $178,200.00$184,700.003.5%
Avg. Mortgage Payment $1,278.09$1,273.320.4%
Apartment Rent $914.00$949.003.7%


ItemPhoenixNational avg.Difference
Gasoline $2.69$2.593.8%
Tire Balancing $47.50$48.902.9%


ItemPhoenixNational avg.Difference
All Electricity$192.64$167.6014.9%
Phone $175.65$163.427.5%
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, AZ096-4%
Komatke, AZ1,25182-18%
Guadalupe, AZ6,17283-17%
Youngtown, AZ6,56391-9%
Sun City, AZ39,36391-9%
Phoenix, AZ1,555,32496-4%

Cities with similar population

City, StatePopulationCost of Living IndexNational Avg.
Philadelphia, PA1,559,9381022%
San Antonio, TX1,439,35888-12%
San Diego, CA1,374,81214949%
Dallas, TX1,278,43399-1%
San Jose, CA1,009,36318181%
Phoenix, AZ1,555,32496-4%
Source: The Phoenix, AZ cost of living data displayed above is derived from the Council for Community and Economic Research (C2ER) for 2019.
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