Average Cost of Living in Arizona: $44,875 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 2022 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 2021 data from the Bureau of Economic Analysis , the average total personal consumption cost in Arizona is $44,875 per year. Here’s how that total cost breaks down:

Average Cost of Living in AZ by Category:

Housing and Utilities: $8,184
Health Care: $6,828
Food and Beverages: $3,346
Gas and Energy Goods: $1,061
All Other Personal Expenditures: $25,457

Image Credit: 4kodiak/istockphoto.

Housing Costs in Arizona

Average Housing Costs in Arizona: $973 to $2,169 per month

With more than 3 million housing units in Arizona, according to 2021 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 February 2023 was $409,196, 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: $1,545
Median studio rent: $973
Median one-bedroom rent: $1,047
Median two-bedroom rent: $1,251
Median three-bedroom rent: $1,478
Median four-bedroom rent: $1,688
Median five-bedroom (or more) rent: $2,169
Median gross rent: $1,253

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 January 2023.

Typical Home Price by Arizona City:

Phoenix: $433,926
Tucson: $329,406
Yuma: $256,507
Lake Havasu City: $340,211
Flagstaff: $560,197
Sierra Vista: $230,699
Show Low: $352,093
Payson: $349,093
Nogales: $248,482
Safford: $243,931

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Utility Costs in Arizona

Average Utility Costs in Arizona: $408 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.

Average Arizona Bill by Utility:

Electricity: $131
Gas: $116
Cable and Internet: $108
Water: $53

(Learn more at Top 10 Fun Things to Do When Visiting Salt Lake City).

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Groceries & Food

Average Grocery & Food Costs in Arizona: $278.83 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 (non-restaurant) food cost per capita to be $3,346, which breaks down to about $279 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 for the second quarter of 2022, from lowest to highest.

Grocery Item Index by Arizona City:

Surprise: 92.3
Bullhead City: 93.6
Yuma: 98.6
Phoenix: 99.5
Tucson: 103.9
Flagstaff: 110.4

Image Credit: ljubaphoto/istockphoto.

Transportation

Average Transportation Costs in Arizona: $5,316 to $15,073 per year

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

The following data from MIT’s Living Wage Calculator , for the first quarter of 2023, can give you an idea of how much you’ll spend on transportation in Arizona, depending on your family structure.

Average Annual Transportation Cost by Family Makeup:

One adult, no children: $5,316
Two working adults, no children: $9,561
Two working adults, three children: $15,073

Image Credit: monkeybusinessimages/istockphoto.

Health Care

Average Health Care Costs in Arizona: $6,828 per person, per year

According to the 2021 Bureau of Economic Analysis Personal Consumption Expenditures by State report, the average annual per-capita cost of health care in Arizona is $6,828.

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.

Image Credit: simonkr/istockphoto.

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 2021 data from costofchildcare.org these are the average monthly child care costs by type of care:

Type of Child Care by Average Cost Per Month, Per Child.

Infant Classroom: $1,283
Toddle Classroom: $981
Preschooler Classroom: .$787
Home-based Family Child Care: $1,080

Image Credit: PeopleImages/istockphoto.

Taxes

Highest Marginal Tax Rate in Arizona: 2.5%

Arizona charges residents a state income tax, and the new flat tax of 2.5% will take into effect in the 2023 tax year.

According to the Tax Foundation’s State Individual Income Tax Rates and Brackets for 2023 , the new flat tax of 2.5% will begin in the 2023 tax year (for the 2022 tax year, the top marginal tax rate in Arizona was 3.34% but started as low as 2.55%). For comparison’s sake, California’s graduated-rate income tax tops out at 13.3%.

Image Credit: shih-wei/istockphoto.

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 $25,457 in personal expenditures a year.

Let’s look at where some of that spending might go (costs are accurate as of March 2023:

A visit to Bearizona, 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 $1,890 if you book a private tour.
Entrance to Grand Canyon National Park for the whole family: $35 per vehicle.

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

(Learn more at Top 10 Fun Things to Do When Visiting Los Angeles).

Image Credit: Angel Vidal Rabadan Crespo/istockphoto.

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 29th 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 even less affordable — 37th for states with the lowest cost of living. (Mississippi had the lowest; Hawaii, the highest on that list.)

Image Credit: David Arment/istockphoto.

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 the second quarter of 2022.

Bullhead City

A cost-of-living ranking of 90.6 snagged Bullhead City the top spot on the council’s index for Arizona. Bullhead City is on the east bank of the Colorado River and spans 57.2 square miles, so you’ll have plenty of areas to explore if you move there.

Surprise

With nearly 150,000 residents, 52,205 households, according to the most recent census data, this Arizona city is sure to hold plenty of pleasant surprises for new residents. And a cost-of-living index of 98.4 is a good sign for your wallet.

Yuma

In Yuma, getting moving and enjoying the great outdoors is a piece of cake. Close proximity to the Colorado River gives you the opportunity to enjoy water activities; plus Yuma (cost-of-living index of 95.8) has tons of scenic trails you can hike on.

This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.

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