Cost of Living in Tempe, Arizona (2026)
COL Index
103
100 = US avg
1BR Rent
$1,600
per month
Median HHI
$68K
per year
State Tax
2.5%
income tax
Full cost breakdown
| Category | Tempe |
|---|---|
| 🏠 HousingQ1 2026 | |
| Studio rent/mo | $1,250 |
| 1BR rent/mo | $1,600 |
| 2BR rent/mo | $2,100 |
| Median home price | $430K |
| 🛒 Food & GroceriesQ1 2026 | |
| Groceries index (100 = US avg) | 100 |
| Budget meal (1 person) | $14 |
| Mid-range dinner (2 people) | $58 |
| 🚌 TransportationQ1 2026 | |
| Monthly transit pass/mo | $55 |
| Gas price/gal | $3.20 |
| Car insurance/moCompare rates → | $158 |
| ⚡ UtilitiesQ1 2026 | |
| Utilities bundle (elec + gas + water)/mo | $210 |
| Internet/mo | $62 |
| 💰 Income & TaxesQ1 2026 | |
| Median household income/yr | $68K |
| State income tax rate | 2.5% |
| Sales tax (combined) | 8.6% |
| 📊 OverviewQ1 2026 | |
| Overall COL index (100 = US avg) | 103 |
| Walk score / 100 | 46 |
Is Tempe affordable on your salary?
How rent burden (1BR) changes across income levels. Under 30% is comfortable; above 40% is tight.
$40K
~$2,645/mo take-home
60% rent burden · Difficult
$50K
~$3,056/mo take-home
52% rent burden · Difficult
$60K
~$3,668/mo take-home
44% rent burden · Tight
$75K
~$4,584/mo take-home
35% rent burden · Manageable
$80K
~$4,890/mo take-home
33% rent burden · Manageable
$100K
~$6,113/mo take-home
26% rent burden · Comfortable
$120K
~$6,905/mo take-home
23% rent burden · Comfortable
$150K
~$8,631/mo take-home
19% rent burden · Very comfortable
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Data: Zillow Observed Rent Index, BLS, Numbeo, Tax Foundation, US Census ACS · Q1 2026 · For general guidance only