A
1%
Overall NAT. AVG.
9%
Goods & Services NAT. AVG.
10%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Tucson Arizona National
Cost of living101101100
Goods & Services109104100
Groceries105102100
Health care9094100
Housing9097100
Transportation108106100
Utilities10295100

An Overview of Cost of Living in Tucson, AZ

Understanding the cost of living in Tucson can help future residents assess whether their current financial situation aligns with the expenses they will encounter. It enables them to plan for potential changes in their budget and lifestyle. The Tucson cost of living index is 101, which is 1% higher than the national average. The cost of living index is calculated by taking into account multiple categories, which encompass both the cost of everyday expenditures and larger expenses as well.

The cost of living in Tucson closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, goods and services, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Tucson can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.

Is Tucson Affordable?

Is Tucson an affordable place to live? It's a good question and one that you might want to ask when considering any new city, as affordability can play a huge role in the decision making process. The cost of living index (which we covered above), as well as housing costs and income levels play a vital role in determining the affordability of an area. The median home price in Tucson is 10.2% lower than the national average, while the average monthly rent prices are 9.3% lower than average. The affordability of any location can also be influenced by median income levels. Tucson has a median household income of $45,227, which is 18.2% lower than the national average.

What Factors can Influence the Cost of Living in Tucson?

Subsidies: Some areas might offer government subsidies or assistance programs that help lower cost of living for residents. These programs can include anything from Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and crop subsidies. Areas that offer less subsidies, could see an increase in their cost of living.

Urbanization: Urban areas with a wealth of amenities and employment opportunities tend to come with a higher price tag for living. Why? Well, more people want to be there, which drives up home prices and rents. On the flip side, less densely populated rural areas or places where there's not as much demand usually mean fewer attractions, things to do and slower job growth. That often results in a lower cost of living.

Housing: A sought-after location with high housing demand often leads to increased property values and rental rates, which can significantly inflate the overall cost of living. Conversely, areas with low housing demand, particularly in less desirable locales, tend to experience the opposite effect, causing prices to drop and contributing to a more affordable cost of living. In Tucson, the housing index stands at 9.9% lower than the national average.

Where is the Data From?

The Tucson cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. Published on a quarterly basis, it compiles data from more than 300 independent researchers, encompassing over 60 goods and services. These items have been meticulously selected to represent various consumer expenditure categories, in 6 categories. Weightings assigned to cost differentials draw from government survey data tracking spending patterns among professional and executive households. While the C2ER index excludes data on sales or income tax rates, AreaVibes incorporates tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Tucson is 1% higher than the Arizona average
  • The cost of living in Tucson is 1% higher than the national average
  • Tucson housing is 10% lower than the national average
  • Arizona general sales tax is 10% higher than the national average
  • Arizona state income tax is 4% lower than the national average

Most Affordable Places to Live in and Around Tucson

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Compare Tucson, AZ Cost of Living

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$61,821$5,152$1,442$1,855
      Renters$31,885$2,657$744$957
      To approximate the cost of living and the housing affordability in Tucson, AZ, we can look at the percentage of income that is available to be spent on monthly housing, otherwise known as the debt-to-income ratio (DTI). To stay on the safe side, a consumer should not spend more than 28% of his or her gross income on housing-related expenses and costs and not more than 36% of income on all expenses and debts. Homeowners in Tucson have a median income of $61,821. Therefore, the amount that a consumer should spend on housing costs should be no more than $1,442 per month to avoid calamity and poverty. The renters in the city have an income of about $31,885, which would make their monthly maximum allowable rental costs $744.

      Arizona Sales Tax

      State General Sales Tax With Max Surtax
      Arizona 5.6% 10.725%

      Arizona Income Tax

      State Income Tax (Low) Income Tax (High)
      Arizona 2.5% 2.5%

      Goods & Services

      Item Tucson National avg. Difference
      Haircut $29.15$24.2620.2%
      Beauty Salon $45.06$45.561.1%
      Toothpaste $3.64$3.701.8%
      Shampoo $1.33$1.284.1%
      Movie $12.36$12.131.9%
      Bowling $13.68$18.0024.0%

      Groceries

      Item Tucson National avg. Difference
      Ground Beef $6.07$5.844.0%
      Fried Chicken $1.41$1.5710.3%
      Milk $4.75$4.671.7%
      Potatoes $4.58$4.937.1%
      Pizza $12.52$12.093.6%
      Beer $11.13$10.416.9%

      Health Care

      Item Tucson National avg. Difference
      Optometrist $116.73$125.687.1%
      Doctor $125.31$135.787.7%
      Dentist $101.61$113.2910.3%
      Ibuprofen $11.03$10.653.6%
      Lipitor $370.51$468.6020.9%

      Housing

      Item Tucson National avg. Difference
      Home Price $165,900.00$184,700.0010.2%
      Avg. Mortgage Payment $2,328.25$2,346.690.8%
      Apartment Rent $861.00$949.009.3%

      Transportation

      Item Tucson National avg. Difference
      Gasoline $4.05$3.4617.0%
      Tire Balancing $52.24$59.9212.8%

      Utilities

      Item Tucson National avg. Difference
      All Electricity $198.69$193.992.4%
      Phone $193.20$192.250.5%
      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 Population Cost of Living Index National Avg.
      Willow Canyon, AZ01065.9%
      Rillito, AZ01065.9%
      Flowing Wells, AZ17,2278712.8%
      Summit, AZ5,0668911.1%
      Littletown, AZ645918.7%
      Tucson, AZ545,3401011.1%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Québec, QC548,244n/a 
      Surrey, BC560,150n/a 
      Albuquerque, NM560,4471000.2%
      Fresno, CA526,14711616.5%
      Mesa, AZ508,91811615.8%
      Tucson, AZ545,3401011.1%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.