50 states · AZ

Arizona cost of living & income (2026)

Quick answer: Arizona has a cost-of-living index of 107.6 (100 = national baseline), an illustrative estimated annual cost of living of about $53,800, median household income of $81,486, combined average sales tax about 8.52%, and regular gas about $4.221/gal in the June 2026 AAA snapshot used on the hub.

COL index107.6100 = US baseline

Est. annual COL$53,800

Median HH income$81,486

Sales tax (comb.)8.52%

Gas (87 octane)$4.221/galJune 2026 AAA

Largest cityPhoenix (1,650,070)

Taxes & economy

Income tax: Flat 2.5%

Sales tax: 5.6% state (combined avg. ~8.52%)

Major industries: Technology/semiconductors, tourism, agriculture, aerospace, real estate

Climate snapshot

Summer high ~107°F (July, Phoenix area) · Winter low ~41°F (January, Phoenix area)

Culture (context)

Heard Museum / Grand Canyon area

Arizona State Fair (Phoenix) — major agricultural & cultural fair
Sedona International Film Festival / Native American cultural powwows

Open the interactive 50-state map & table — sort, filter, and use the dual ranker on the full explorer.

What this means for you

What this means for you: a basket priced at 100 on the national baseline is indexed at 107.6 in Arizona. A salary that buys that basket at the baseline would need about 107.6% of that salary to buy the same basket here. That is index math from this snapshot, not a tax-equalized offer and not your rent.

Compare a salary: Arizona vs Texas on the explorer.

How to read this page

Read the quick answer for Arizona's cost-of-living index, estimated annual cost, median income, sales tax, and gas price.
Open the 50-state explorer and compare Arizona with another state. The salary line multiplies pay by the other index divided by this index.
Use the mortgage, rent, and paycheck calculators with your own numbers. This page does not compute a tax return.

Related calculators: mortgage · rent · paycheck.

Related states

Similar cost-of-living index in this dataset:

Montana — COL 105.9 (Δ 1.7 index pts)
Oregon — COL 109.6 (Δ 2.0 index pts)
New Hampshire — COL 110.1 (Δ 2.5 index pts)

Browse A–Z:

FAQ

What is Arizona's cost of living index?

Arizona's cost-of-living index is 107.6 (national baseline 100) in this 2026 classroom snapshot.

What is the estimated annual cost of living in Arizona?

The explorer lists an illustrative estimated annual cost of living of about $53,800 for Arizona.

What is median household income in Arizona?

Median household income in Arizona is $81,486 in this dataset.

What is the combined average sales tax rate in Arizona?

The combined average sales tax rate shown for Arizona is 8.52%. State and local rules vary; see the Tax Foundation citation on the hub.

Does Arizona have a state income tax?

State income tax in Arizona: Flat 2.5%.

What was regular gas in Arizona in this snapshot?

87-octane gas is listed at $4.221 per gallon (AAA, June 2026) in the explorer data.

How should a household read Arizona's cost-of-living index?

The index is 107.6 against a US baseline of 100. A salary that buys a basket at the baseline would need about 107.6% of that salary to buy the same basket in Arizona in this snapshot. It is not a tax bill, a rent quote, or financial advice.

Sources: Tax Foundation (sales tax), BEA / ACS (income & COL), AAA gas (June 20, 2026). Educational, not financial, tax, or relocation advice.