Arizona's cost of living index is 103 — 3.0% above the US average of 100. Compare purchasing power and equivalent salaries across states.
CoL Index
103
US avg = 100
vs. National Avg
+3.0%
More expensive
Median Income
$62,055
Arizona median household
Equiv. at US Avg
$60,248
Same purchasing power
| CoL Index | 103 | MIT/MERIC composite index (US avg = 100) |
| vs. National | +3.0% | Above average cost |
| Median Household Income | $62,055 | Arizona median (2023 ACS) |
| National Purchasing Power | $60,248 | Equivalent $ at US avg CoL |
| Overall Category | High | Qualitative classification |
| Population | 7,151,502 | 2020 US Census |
With a cost of living index of 103, Arizona is roughly on par with the national average. Higher costs in Arizona mean your dollar stretches less far than in most states. A salary of $62,055 in Arizona provides the equivalent purchasing power of $60,248 in a state with average cost of living.
Housing is typically the largest driver of cost of living differences between states.Arizona's median home price of $420,000 is significantly above the national median of approximately $310,000. Other factors include state income tax (2.5% top rate in Arizona), sales tax (5.60% state rate), and local property tax rates (0.62%).
