Cost of Living in Arizona (AZ)
Compare costs across 11 Arizona cities. From home services to salaries, see how AZ stacks up against the national average.
11
Cities
108
Avg Cost Index
$67K
Avg Income
Direct Answer
Arizona's average cost index is 108, which is above the national baseline of 100. Tucson is the most affordable tracked city in AZ at index 93, while Sedona is the most expensive at index 140.
The gap between the cheapest and most expensive tracked cities is 47 index points, so state-level averages should be used as a map, not a final budget.
State cost overviewBLS, Census, HUD inputsLast verified May 2026
Arizona Highlights: Most affordable city: Tucson (index 93). Most expensive: Sedona (index 140). The gap between cheapest and most expensive is 47 index points.
What Drives the Statewide Cost Picture?
Average index
108/100
Arizona is above the national cost baseline across tracked cities.
Cheapest city
Tucson
Tucson has a cost index of 93.
Most expensive
Sedona
Sedona has a cost index of 140.
Income average
$67K
Average median household income across 11 tracked AZ cities.
Cheapest and Most Expensive Cities in Arizona
Arizona State Taxes (2026)
Headline tax rates that affect your real take-home pay and total cost of living in Arizona.
State Income Tax
2.5%
flat system
Combined Sales Tax
8.4%
5.6% state + 2.8% avg local
Property Tax (Effective)
0.62%
~$1,860/yr on a $300K home
Income tax: Arizona uses a flat income tax at 2.5%. No state estate tax. Estimate your take-home pay
State Planning Checklist
- Start with Tucson if the priority is lowest recurring cost inside Arizona.
- Compare Sedona against salary and tax advantages before assuming the higher-cost city is worse.
- Use city pages for rent, salary, insurance, and local service costs before making a relocation decision.