Have you ever wondered what the total cost of living in Phoenix Arizona is and how that compares to other cities across the US? We are going to discuss the cost of living with everything from property taxes to housing, to a night out on the town, to utilities, and everything in between. Phoenix now is the 5th largest metropolitan area in the whole country, and it will continue to grow. We are going to break down several areas that contribute to the ost of living in Phoenix Arizona. The first is housing, which of course is going to be the biggest expense of living in any city. Normally, housing should be about 28%-30% of your total income. Depending on which city you live in, housing expenses will range. Now, let’s rate this on a scale. The national average is always at 100. Phoenix housing comes in at 103.5, which is above the average according to that national scale. What makes up the housing costs? Owning a house or even renting contribute to the overall score for the Phoenix metro area. A few years back, the Phoenix valley ranked in the mid 90s, but with the shifting market and constant growth of the area, our overall score will be ranked higher. Phoenix, Arizona is becoming a destination for retirees and second homeowners.
Utility cost is going to fluctuate dramatically based on how much you use. Gas has risen over the past 20 years for price and most people only use it just for the dryer or even fireplaces in the home. Air conditioning costs will rise drastically in the summertime because of the heat. One AC unit will cover about 2000 Sq. ft of the home, but if you have a two-story, you more than likely will have a couple of AC units. In terms of electricity, APS and SRP are the two main electrical companies, and they have different plans for on-peak and off-peak usage. A very common practice here in Arizona for electricity is not using any electrical components in the house from 3pm-8pm. Home maintenance also contributes to the cost of living in Phoenix Arizona. Most homes in Arizona have a pool and the costs for maintenance will run you anywhere between $80-$100 a month. Having a landscaper is common to have while living here, with most homes having a desert front. There are areas of town where homes do have grass front and depending on what you have in terms of landscaping, the cost will vary. Pest control is the other area of cost that’s important to know. Living in the desert brings a plethora of creepy crawlies and maintaining a constant rhythm to your pest control is important. Lastly, if you preferred to hire a cleaning service to clean your home professional, and let’s say you have a house around 4000 Sq.ft, you’re looking anywhere from 125-200 a month on average to come every two weeks.
Going straight from utilities and housing, property taxes are one of the reasons why you’d want to live in Arizona. Why? Because they are LOW! Arizona is one of the only states in the country with the lowest property taxes overall. For most people, that is a determining factor to where they want to live. On the topic of taxes, Arizona also has a decent sales tax, coming in at 8.3%. Across the board, that is average in the country. There are some items here that do not have a sales tax, such as groceries, medical supplies, etc. The fourth area of discussion for the ost of living in Phoenix Arizona is state income tax. Now there are some states across the country that have zero state income tax. Arizona comes in at a lower rate overall. Our state income tax is 4.5%, which is up to $159,000 for an individual, and $318,000 for a married couple. However, proposition 208 did pass on the ballot in 2020, which means that any income above $318,00 will be taxed 4.5% with an extra 3.5%. That brings the total to 8%. Recently, there has been a lawsuit filed against the state of Arizona stating that the passing of that is illegal. We are waiting to see if the passes officially or not.
Now, let’s go to car expenses, yes, everyone has car expenses. Since the valley is so big and spread out, having a car is a necessity to getting around. The average price per gallon in Phoenix is $2.86 cents, where the national average is $2.89. Now, here’s the kicker. Car registration and vehicle license tax comes in a bit higher in Arizona, which makes up for the lower property taxes. The good thing overall is that after you pay the initial registration of the vehicle, the vehicle license tax amount will go down because cars depreciate over the years. Another car factor you’ll notice in the state of Arizona is that you don’t see many do-it-yourself car washes, with it being more popular in other parts of the country. Pretty much everything is automation, and you’ll see a car wash every few minutes around the valley. With it being so dusty, having a monthly membership for the car wash is a big way you can save money.
To end this all, the overall cost of living in Phoenix Arizona is all around affordable compared to other states. Entertainment, health care, and other areas also contribute but we wanted to cover the more important area of costs. We have so any people contacting us who are either moving to the Scottsdale/Phoenix area and we are so happy to make the transition easier for them. If you have any additional questions about the cost of living in Phoenix Arizona, reach out to us at firstname.lastname@example.org