City Cost of Living ReportArizona (AZ)
Phoenix, AZ Cost of Living
Detailed 2026 economic index for Phoenix. Compare median home values ($420,000), average monthly rent ($1850/mo), local taxes, groceries, and salary conversion equivalents.
Overall COL Index
104.2
4% above US avgMedian Income$64,994
Median Home Price$420,000
Median Rent$1850/mo
Population1,608,139
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Cost Index Breakdown vs US Average (100)
Scores above 100 represent higher than national average costs; scores below 100 indicate greater affordability.
US Baseline = 100
Housing Index
+17% higher116.5
Food & Groceries
-2% lower98.4
Utilities
+6% higher106.1
Transportation
+1% higher101
Healthcare
-3% lower96.5
Itemized Cost Breakdown in Phoenix
Monthly Groceries
| Gallon of Whole Milk | $3.35 |
| Loaf of Fresh White Bread | $2.90 |
| Dozen Large Eggs | $3.60 |
| Boneless Chicken Breast (1 lb) | $4.10 |
| Apples (1 lb) | $2.05 |
| Estimated Monthly Grocery Bill | $410/mo |
Utilities & Internet
| Electricity (900 sq ft apartment) | $210.00 |
| Water & Garbage Service | $50.00 |
| High-Speed Broadband Internet (60+ Mbps) | $65.00 |
| Natural Gas Heating | $35.00 |
| Average Monthly Utilities Total | $360/mo |
Transportation & Transit
| Regular Gasoline (per gallon) | $3.65 |
| Monthly Public Transit Pass | $64.00 |
| Taxi Initial Tariff | $3.00 |
| Average Commute Time | 25.4 mins |
| Est. Monthly Commuter Cost | $350/mo |
Healthcare & Medical
| Primary Care Doctor Visit | $125 |
| Dental Checkup & Cleaning | $110 |
| Optometrist Eye Exam | $100 |
| Average Prescription Rx | $52 |
| Individual Policy Monthly Premium | $410/mo |
Tax Structure in Phoenix, AZ
Understanding state income, local sales tax, and effective property tax burden.
State Income Tax
2.5%
Top state income tax bracketCombined Sales Tax
8.30%
State (5.6%) + Local (2.7%)Effective Property Tax
0.62%
Est. $2,604/yr on median homeFederal Tax Baseline
US Standard
Standard IRS tax brackets applyAdvertisementSlot #city-mid-rectangle
Interactive Historical Trends & Charts
Housing & Rent Inflation Trend (2020 – 2026)
Category Breakdown vs National Benchmark
Pros of Living in Phoenix
- •300+ annual sunny days and outdoor desert recreation
- •Flat 2.5% state income tax rate
- •Booming technology and semiconductor manufacturing hub
Cons of Living in Phoenix
- •Intense summer heat (often exceeding 110°F)
- •High electricity bills during summer air-conditioning peak
Top Neighborhoods in Phoenix
Arcadia
Lush greenery, citrus groves, and Camelback Mountain views
Avg Neighborhood Rent:$2200/mo
Roosevelt Row
Downtown Phoenix art district with walkable dining
Avg Neighborhood Rent:$1950/mo
North Scottsdale
Resort-style living with golf courses and mountain vistas
Avg Neighborhood Rent:$2400/mo
Frequently Asked Questions — Living in Phoenix, AZ
Authoritative 2026 economic index, housing market, and salary questions.
The overall cost of living index for Phoenix, AZ is 104.2, benchmarked against the US national average baseline of 100. This means Phoenix is 4% more expensive than the national average.