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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Let's be honest: Arizona isn't cheap. And for the typical household, but within that premium market, there are cities where your dollar stretches meaningfully further. Phoenix proves it with a cost index of 91, the lowest in Arizona, and we've ranked all 12 contenders to help you find the best deal …
Let's be honest: Arizona isn't cheap. And for the typical household, but within that premium market, there are cities where your dollar stretches meaningfully further. Phoenix proves it with a cost index of 91, the lowest in Arizona, and we've ranked all 12 contenders to help you find the best deal in an expensive landscape.
Tax burden isn't just income tax. And with some exceptions, we combine three layers: state income tax (2.5% in Phoenix), combined state+local sales tax (8.37%), and effective property tax (0.51%). At 2.5% state income tax, the real differentiator becomes sales and property tax rates. On a $75,000 — make of that what you will — salary, the estimated take-home in #1 Phoenix is $55,835/year.
Here's Phoenix by the numbers — and there's a lot to like (and a little to watch). Cost index: 91. Rent: $1,556/month. Income: $77,041/year. Home price: $407,665. Population: 1,650,070. The strongest category is Housing at 91; the most expensive is Healthcare at 98. Translate that rent to annual numbers, and residents are saving renters $4,068 per year vs. the national median. For anyone relocating from a high-cost market, this will feel like a raise.
This looks affordable — until you factor in healthcare. In Phoenix, the healthcare index sits at 98 — not a dealbreaker, but worth knowing about.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
#1 Ranked: Phoenix — cost index 91, rent $1,556/mo, income $77,041
8 of 12 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Phoenix | 91 | $1,556 | Details |
| 2 | Tucson | 82 | $1,399 | Details |
| 3 | Mesa | 91 | $1,554 | Details |
| 4 | Chandler | 108 | $1,848 | Details |
| 5 | Gilbert | 120 | $2,049 | Details |
| 6 | Scottsdale | 123 | $2,113 | Details |
| 7 | Tempe | 98 | $1,679 | Details |
| 8 | Glendale | 90 | $1,544 | Details |
| 9 | Surprise | 112 | $1,926 | Details |
| 10 | Goodyear | 103 | $1,767 | Details |
| 11 | Peoria | 106 | $1,821 | Details |
| 12 | Buckeye | 117 | $2,004 | Details |
1,650,070 residents · Arizona
The #1 spot goes to Phoenix, and the breakdown explains why. Renters here pay $1,556/month — for better or worse — — saving renters $4,068 per year compared to the national average. Meanwhile, Housing is the standout at index 91, keeping costs manageable. The weak spot? Healthcare at 98. At a 24% rent-to-income ratio, there's genuine breathing room in the average household budget.
547,239 residents · Arizona
Tucson earns its position at #2 through a combination that's hard to replicate. The 82 cost index sits 29 points below the national baseline, and the $54,546 — though some people might weigh that differently — median income means purchasing power here is amplified by the low cost base. Homes list at $321,688 — $145,682 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 82, while Healthcare trails at 96.
511,648 residents · Arizona
So, Mesa. Cost index of 91, rent at $1,554/month. It's lower than the national average. Median income is $78,779, which is below the national median. It lines up with what you'd expect.
280,167 residents · Arizona
What does daily life actually cost in Chandler? Start with the 21% rent-to-income ratio — that's the kind of margin that lets people build savings. On the category level, Healthcare (index 102) is where the real savings show up, while Housing (index 108) is the line item most likely to surprise newcomers. Income at $103,691 — for better or worse — and homes at $521,806 round out a profile that ranks #4 for clear reasons.
275,411 residents · Arizona
A closer look at Gilbert: the cost index of 120 breaks down to a Healthcare index of 104 (strongest category) and a Housing index of 120 (weakest). Median rent is $2,049/month — 8% above the national median — while household income sits at $121,351, meaning locals spend about 20% of income on rent. That's a healthy margin by any standard.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Phoenix | 2.5% | 8.37% | 0.51% | $57,219 |
2Tucson | 2.5% | 8.37% | 0.51% | $57,219 |
3Mesa | 2.5% | 8.37% | 0.51% | $57,219 |
4Chandler | 2.5% | 8.37% | 0.51% | $57,219 |
5Gilbert | 2.5% | 8.37% | 0.51% | $57,219 |
6Scottsdale | 2.5% | 8.37% | 0.51% | $57,219 |
7Tempe | 2.5% | 8.37% | 0.51% | $57,219 |
8Glendale | 2.5% | 8.37% | 0.51% | $57,219 |
9Surprise | 2.5% | 8.37% | 0.51% | $57,219 |
10Goodyear | 2.5% | 8.37% | 0.51% | $57,219 |
Cities are ranked by effective property tax rate within Arizona. Property taxes can vary significantly between municipalities even within the same state due to local levies, school districts, and assessment practices. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Phoenix ranks #1 in Arizona for this analysis with a cost index of 91 and median income of $77,041.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Phoenix (ranked #1) has a cost index of 91 and rent of $1,556/mo, while Buckeye (ranked #12) has a cost index of 117 and rent of $2,004/mo — a 26-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Phoenix is $1,556/month as of 2026, based on Zillow's Observed Rent Index. This is $339 below the national median of $1,895/month.
The median home price in Phoenix is $407,665, which is 5.3× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
Arizona has a 2.5% state income tax rate. Combined state and local sales tax averages 8.37%, and the effective property tax rate is 0.51%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.