Arizona's cost of living index is 108.6 — 8.6% above the US average of 100 (MERIC (C2ER index), Second Quarter 2026). The index averages the cities that take part in the survey, so it describes those areas rather than the whole state. Compare purchasing power and equivalent salaries across states.
CoL Index
108.6
US avg = 100 · MERIC (C2ER index), Second Quarter 2026
vs. National Avg
+8.6%
More expensive
Median Income
$81,486
Median household · Census ACS 2024 1-year
Equiv. at US Avg
$75,033
Same purchasing power
| CoL Index | 108.6 | MERIC (C2ER index), Second Quarter 2026 — composite, US avg = 100 |
| vs. National | +8.6% | Above average cost |
| Median Household Income | $81,486 | Arizona median — Census ACS 2024 1-year |
| National Purchasing Power | $75,033 | Equivalent $ at US avg CoL |
| Overall Category | High | CalcHub band of the index: Low < 90 ≤ Moderate < 100 ≤ High < 115 ≤ Very High |
| Population | 7,623,818 | Census Bureau estimate, July 1, 2025 |
With a cost of living index of 108.6, Arizona is 9% above the national average. Higher costs in Arizona mean your dollar stretches less far than in most states. A salary of $81,486 in Arizona provides the equivalent purchasing power of $75,033 in a state with average cost of living.
Housing is typically the largest driver of cost of living differences between states.Arizona's typical home value of $418,000 is near the U.S. typical value of $368,700 (Zillow Home Value Index, August 2026). Other factors include state income tax (2.5% top rate in Arizona), sales tax (5.6% state rate), and property taxes (0.43% effective rate).
