Arizona vs Texas — Cost of Living, Taxes & Income Reality
Data: 2026-Q2 · BLS · HUD · KFFQuick comparison
| Metric | Arizona | Texas |
|---|---|---|
| Cost of Living Index | 102 | 93 ✓ |
| Median Household Income | $81,486 ✓ | $79,721 |
| Median Rent | $1,940/mo | $1,800/mo ✓ |
| State Income Tax | 2.50% | No tax ✓ |
Tax reality
On a $70,000 salary, you keep about $1,750 more per year in Texas. That works out to roughly $146/month in additional take-home.
Housing reality
Arizona
1BR $1,583 – $1,583/mo
Texas
1BR $1,177 – $1,648/mo
Major cities compared
Arizona
Purchasing power
Your $70,000 in Phoenix feels like approximately $66,973 in Austin, once housing and taxes are accounted for.
Who benefits from each
- Remote workers and high earners who want to keep more of their paycheck lean toward Texas for its lower tax burden.
- Anyone prioritizing a lower overall cost of living will find Texas stretches a paycheck further.
- Workers chasing higher nominal salaries may prefer Arizona, where median household income is higher.
Arizona vs Texas — FAQ
Is it cheaper to live in Arizona or Texas?
By cost of living index, Texas is the cheaper of the two (Arizona: 102, Texas: 93; national average = 100). Source: C2ER Cost of Living Index.
Which state has lower income taxes, Arizona or Texas?
Texas leaves more in your pocket. On a $70,000 salary, you keep about $1,750 more per year in Texas. Source: Tax Foundation 2025, IRS 2025.
What is the median income difference between Arizona and Texas?
Arizona has the higher median household income (Arizona: $81,486, Texas: $79,721). Source: Census ACS 2024.
Should I move from Arizona to Texas?
It depends on your priorities. Texas offers a lower cost of living, while Arizona has higher median incomes. Weigh taxes, housing, and career options together. This is a picture, not a verdict.