Cost of Living in Arizona

By Jacqueline DeMarco

(Last Updated – 03/2025)

Get ready to enjoy blue skies if you make your way to Arizona. The Grand Canyon State has an average of 286 sunny days a year, which is a lot more than the national average of 205.

That means you can hit the trails in Saguaro National Park without having to worry about too much rain. There are also plenty of big cities with flourishing housing markets, such as the Phoenix housing market and the Tucson housing market in Arizona.

If sunshine isn’t enough to sway you, read on for a better idea of what the Arizona cost of living is like so you can see if a move to the state will keep your budget happy and healthy.

What’s the Average Cost of Living in Arizona?

Average Cost of Living in Arizona: $53,921 per year

It turns out that living in Arizona may put a significant dent in your monthly budget.

Arizona ranks 37th when it comes to which states have the lowest cost of living, according to MERIC’s 2024 Cost of Living Index . If you’re looking to move to the Southwest, New Mexico is a much more affordable option. In the same ranking, New Mexico was found to have the 19th lowest cost of living.

So how much does coming in 37th place cost Arizona residents? According to 2023 data from the Bureau of Economic Analysis, the average total personal consumption cost in Arizona is $53,921 per year. Here’s how that total cost breaks down:

Housing Costs in Arizona

Average Housing Costs in Arizona: $1,206 to $2,676 per month

With more than 3.2 million housing units in Arizona, according to census data, you should have no trouble finding a home in Arizona, as long as the housing prices are within your budget. The typical home value in Arizona in June 2024 was $426,947, according to Zillow.

How much you’ll spend on housing each month will vary depending on if you rent or buy. Here’s what you can expect to spend, according to the latest census data.

•  Median monthly mortgage cost: $1,739

•  Median studio rent: $1,206

•  Median one-bedroom rent: $1,345

•  Median two-bedroom rent: $1,623

•  Median three-bedroom rent: $1,860

•  Median four-bedroom rent: $2,156

•  Median five-bedroom (or more) rent: $2,676

•  Median gross rent: $1,608

Where you want to live in Arizona can play a big role in how much it costs to buy a home. Here are typical home values for some major Arizona cities, according to Zillow, as of December 2024.

Utility Costs in Arizona

Average Utility Costs in Arizona: $390 per month

Even once you own a home and pay it off fully, you’ll still need to pay for utilities every month. Here’s what the average monthly utility bill expenses look like in Arizona.

Sources: U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price; Statista.com “Average monthly residential utility costs in the United States, by state”; DoxoInsights, U.S. Cable & Internet Market Size and Household Spending Report; and Rentcafe.com, What Is the Average Water Bill?

Groceries & Food

Average Grocery & Food Costs in Arizona: $327 per person, per month

Food is a major ongoing expense no matter where you live, but how much should you plan to spend on food per month in Arizona?

As previously noted, the Bureau of Economic Analysis found Arizona’s average annual (nonrestaurant) food cost per capita to be $3,923, which breaks down to about $327 per person, per month. That said, where you live in Arizona can play a role in how much food costs you.

According to the Council for Community and Economic Research, which ranks food expenses in major American cities, these are the rankings for Arizona cities’ grocery costs as of 2024.

Transportation

Average Transportation Costs in Arizona: $9,783 to $18,205 per year

Getting from place to place can add up, especially if you have two commuting adults or children in your family.

The following 2024 data from MIT’s Living Wage Calculator can give you an idea of how much you’ll spend on transportation in Arizona, depending on your family structure.

Health Care

Average Health Care Costs in Arizona: $7,943 per person, per year

According to the Bureau of Economic Analysis Personal Consumption Expenditures by State report, the average annual per-capita cost of health care in Arizona is $7,943.

It’s worth noting that how much you’ll spend on health care can vary greatly depending on your specific health care needs and what type of coverage you have.

Child Care

Average Child Care Costs in Arizona: $787 to $1,283 per child, per month

No matter what your family’s financial situation is, child care is likely to be a large expense for you, especially during the early years of your child’s life. How much you’ll spend each month can depend on your child’s age.

For example, in Arizona you’ll spend an average of $1,283 a month on care in an infant classroom but $787 a month for care in a preschooler classroom.

For assistance covering these expenses, the Arizona Department of Economic Security offers child care assistance for working low-income families, teen parents attending high school or GED classes, domestic violence or homeless shelter residents, and parents who can’t care for their children because of emotional or physical conditions.

According to data from CostofChildCare.org, these are the average monthly child care costs by type of care:

Taxes

Highest Marginal Tax Rate in Arizona: 2.5%

Arizona charges residents a flat state income tax of 2.5%.

According to the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2025, Arizona’s 2.5% flat tax is one of the lowest in the region, with neighbor New Mexico charging a top rate of 5.9% and Utah to the north a 4.55% top rate. But it’s nowhere near California’s graduated-rate income tax rate, which tops out at 13.3%.

Miscellaneous Costs

Once you’re done funding all of your necessities, it’s time to have some fun. The Bureau of Economic Analysis found that the average Arizonan can expect $29,749 in personal expenditures a year.

Let’s look at where some of that spending might go (costs are accurate as of March 2025:

•  A visit to Bearizona Wildlife Park, in Williams, to check out the bears: $20 to $35 depending on age and if you go during the week or on the weekend. Children 3 and under can enter for free.

•  An adrenaline-pumping Pink Jeep Tour in Sedona: As much as $1,970 if you book a private tour.

•  Entrance to Grand Canyon National Park for the whole family: $35 per private vehicle.

•  A legendary Arizona meal, the Sonoran hot dog began as a street food staple and has grown to an iconic Arizonan foodie favorite. Order one at El Guero Canelo in Tucson for $4.

If you want to save on a trip to the Grand Canyon, there are a handful of entrance fee-free days throughout the year.

How Much Money Do You Need to Live Comfortably in Arizona?

We all have our own idea of what it means to live comfortably, but most of us share a general set of living standards we hope to afford. Arizona is not one of the more affordable states to live in.

U.S. News & World Report’s Affordability Rankings found Arizona to be the 36th most affordable state. That ranking measures the average cost of living in each state against the average amount of money most households in that state have.

The MERIC ranking found Arizona slightly less affordable — 37th for states with the lowest cost of living. (West Virginia had the lowest; Hawaii, the highest on that list.)

What City Has the Lowest Cost of Living in Arizona?

To make it easier to obtain a comfortable lifestyle in Arizona, let’s get to know the three major Arizona cities with the lowest cost of living, according to the Council for Community and Economic Research’s Cost of Living Index for 2024.