Is Arizona or California cheaper?
This is because the Arizona vs. California cost of living rates are significantly lower in AZ. The cost of groceries is about 24% lower in Phoenix, housing is 69% down, utilities are 20% cheaper, transportation is 29% less, and healthcare is 28% cheaper.
1. Cost of living. California is 29.3% more expensive than Arizona. If to compare the average cost of living in Phoenix, Arizona, and Los Angeles, California, you will find that CA is far more costlier than AZ. California's housing cost is 36.8% costlier.
Cost of Living
Living in Arizona is significantly less expensive than living in California. For example, people who live in Arizona get the advantage of cheaper groceries, transportation, utilities, and especially housing compared to those in California, where it is significantly higher.
State | State Tax Rate | Avg. Local Tax Rate (a) |
---|---|---|
Arizona | 5.60% | 2.77% |
Arkansas | 6.50% | 2.96% |
California | 7.25% | 1.57% |
Colorado | 2.90% | 4.88% |
Average Cost of Living in Arizona: $44,875 per year
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.
Californians move to Arizona for the lower cost of living. California has exorbitant housing, taxes, and utilities. Arizona has cheaper housing, utilities, and taxes. Arizona's lower cost of living allows many Californians to live better.
This is because the Arizona vs. California cost of living rates are significantly lower in AZ. The cost of groceries is about 24% lower in Phoenix, housing is 69% down, utilities are 20% cheaper, transportation is 29% less, and healthcare is 28% cheaper.
§ 23-363(B), Arizona's minimum wage will increase from $12.80 to $13.85 effective January 1, 2023. The $1.05 increase in minimum wage is based on the increase in inflation between August 2021 and August 2022, as published in the U.S. Bureau of Labor Statistics' Consumer Price Index.
- Douglas. Douglas is the cheapest place to live in Arizona. ...
- San Luis. San Luis is the second cheapest place to live in Arizona. ...
- Eloy. Eloy is one of Arizona's cheapest towns for those who prefer a balance between urban and rural living. ...
- Rio Rico. ...
- Kingman. ...
- Bullhead City. ...
- Sun City. ...
- Yuma.
Over the past half decade, families have been moving from California to Phoenix, AZ, at a shocking rate. In 2018, this particular move was the second most popular move in the United States. But for those looking to leave The Golden State, the options are endless.
Which US state has lowest taxes?
- Alaska - 5.06%
- Delaware - 6.12%
- New Hampshire - 6.14%
- Tennessee - 6.22%
- Florida - 6.33%
- Wyoming - 6.42%
- South Dakota - 6.69%
- Montana - 6.93%
Reaching up to 13.30%, California does have the highest personal income tax rate in the country. But when one looks at tax burden overall, California falls much lower on the list.
Data shows the average person needs to make $90,000 per year after taxes in order to live comfortably.
- Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. ...
- Kansas. ...
- Alabama. ...
- Oklahoma. ...
- Georgia. ...
- Tennessee. ...
- Missouri. ...
- Iowa.
States With Lowest Cost of Living
Mississippi is the state with the lowest cost of living in the US, with a cost of living index of 85. This means that the cost of living in Mississippi is 15% lower than the national average. The state has a low cost of housing, groceries, and utilities.
The states with the largest net migration outflow rates from California all border the Golden State or are nearby. Net outflow rates are largest to Idaho and Nevada, followed by Oregon and Arizona. Smaller but still significant outflow rates are to Hawaii, Montana, Utah, Washington, Tennessee, and Colorado.
The most common destinations for California migrants were Texas, Arizona, and Nevada. Texas had the most California transplants from 2020 to 2021: 105,000. Arizona (with 63,000 California transplants) and Nevada (55,000) were next highest.
- Great Places to Live. One popular benefit of living in Arizona is the relatively low cost of living. ...
- Strong Job Market. ...
- Sunny Climate. ...
- The Grand Canyon. ...
- Cultural Attractions. ...
- Amazing Sunsets. ...
- Beautiful Sedona. ...
- Forget Daylight Savings Time.
The cost of living in Denver, CO is 11.0% higher than in Phoenix, AZ. You would have to earn a salary of $66,614 to maintain your current standard of living.
- The weather is warm and dry year-round.
- Living in Arizona is good for your health.
- Natural wonders abound in the state.
- The cost of living is not as low as in some states, but it is low enough to be positive.
- The crime rate is low in Arizona.
- Cities are built on a grid.
What will minimum wage be in 2023 in Arizona?
The current minimum wage in Arizona is $13.85 per hour, which is $6.6 more than the federal minimum wage. It raised from $12.80 to $13.85 effective from January 1, 2023. An increase of $1.05 in the minimum wage is based on the inflation that occurred between August 2021 to August 2022.
Which States Have a $15 per Hour Minimum Wage? Washington, California, and Massachusetts are the states with a minimum wage of $15 per hour or above. Workers from Connecticut will have something to smile about as we get to mid-2023.
Currently, 30 states and Washington D.C. have minimum wages above the federal minimum wage of $7.25 per hour. Five states have not adopted a state minimum wage: Alabama, Louisiana, Mississippi, South Carolina and Tennessee. Two states, Georgia and Wyoming, have a minimum wage below $7.25 per hour.
- Washington: $15.74. Living wage: $19.58.
- California: $15.50. Living wage: $21.24.
- Massachusetts: $15. Living wage: $21.35.
- New York: $14.20. Living wage: $21.46.
- New Jersey: $14.13. Living wage: $18.71.
Which state is more affordable? In short, Texas. The cost of living index and median housing prices are lower in Texas than in Arizona, but that also depends on the neighborhood you are in.
San Luis is Recognized as Safest City in Arizona For 2023
San Luis, Arizona — The City of San Luis was recognized as the safest city in Arizona for 2023 by SafeWise. The City of San Luis has earned a spot on this list since 2016.
Winner: Florida
Florida's cost-of-living index score beats Arizona's, at 103 to 106.9, respectively. Both states are slightly above the national average when it comes to cost of living.
Compared to other major cities in the US, Arizona has a lower cost of living, making it an attractive destination for those looking to save money. In addition, Arizona has a favorable tax structure, including no estate tax, making it a popular destination for retirees looking to protect their wealth.
The homes are bigger and there's more available land. Arizona is also known for its great weather and mild winters, stunning landscapes, abundance of jobs, and a decent cost of living.
Exhibit 1: Arizona Net Migration and Natural Increase
It's also clear that California sent by far the most migrants of any state.
Is Arizona a tax friendly state?
Arizona has a 4.90 percent corporate income tax rate, a 5.60 percent state sales tax rate, a max local sales tax rate of 5.30 percent, and a 8.37 percent combined state and local sales tax rate. Arizona's tax system ranks 19th overall on our 2023 State Business Tax Climate Index.
New York has the highest state income tax burden out of any other state. In 2020, the state collected income taxes that amounted to 4.7% of per capita personal income, or nearly $3,500 per person. Not far behind are Maryland and Washington, DC.
- California - 1-13.3%
- Minnesota - 5.35-9.85%
- Hawaii - 1.4-11.
- New Jersey - 1.4-10.75%
- Iowa - 0.33-8.53%
- Vermont - 3.35-8.75%
- New York - 4-10.9%
- Maine - 5.8-7.15%
States that have no income tax aren't excessively wealthy and benevolent. They simply have a different structure for raising revenue. With no income tax dollars coming in, these states must get that revenue from other sources. Typically, this translates to higher sales taxes, property taxes and/or gasoline taxes.
- Alabama.
- Alaska.
- Arizona.
- Arkansas.
- California.
- Delaware.
- Florida.
- Georgia.
Tax rate | Taxable income bracket | Tax owed |
---|---|---|
1% | $0 to $10,099. | 1% of taxable income. |
2% | $10,100 to $23,942. | $100.99 plus 2% of the amount over $10,099. |
4% | $23,943 to $37,788. | $377.85 plus 4% of the amount over $23,942. |
6% | $37,789 to $52,455. | $931.69 plus 6% of the amount over $37,788. |
Like most governments, California relies primarily on taxes to fund the public services that it provides to its individuals and businesses. California's state and local governments raise well over $200 billion annually in own-source revenues to provide public services, with roughly 60 percent of this from taxes.
Though Texas has no state-level personal income tax, it does levy relatively high consumption and property taxes on residents to make up the difference. Ultimately, it has a higher effective state and local tax rate for a median U.S. household at 12.73% than California's 8.97%, according to a new report from WalletHub.
The state has the highest personal income tax rate for its wealthiest. It's 9.3 percent for those making $53,000 to $269,000 and 13.3 percent for those making $1 million or more.
Is $30 an hour good in California?
California ranks number 34 out of 50 states nationwide for 30$ An Hour job salaries. To estimate the most accurate annual salary range for 30$ An Hour jobs, ZipRecruiter continuously scans its database of millions of active jobs published locally throughout America.
Leading the way in Arizona is Gilbert, where the median household income is $104,802, and a middle-class income ranges from $70,217 to $209,604. Next is Scottsdale, where the median household income is $99,097, and the middle-class income ranges from $66,395 to $198,194.
- New Hampshire. State Cost of Living Index: 114.7. ...
- Connecticut. State Cost of Living Index: 115.4. ...
- Vermont. State Cost of Living Index: 116.4. ...
- Oregon. State Cost of Living Index: 122.2. ...
- Maryland. State Cost of Living Index: 124.1. ...
- Alaska. State Cost of Living Index: 125.5. ...
- New York. ...
- 3. California.
In its report, Niche also ranked the cheapest places to live in the U.S. At the top of the list this year is Brownsville, Texas. Brownsville has been steadily rising in Niche's Lowest Cost of Living ranking over the past few years, placing number six in 2021, number three in 2022 and finally, number one in 2023.
Overall, Arizona has a cost of living that's generally close to the national average. However, by choosing the right cities, towns, or neighborhoods, you can potentially do a bit better, particularly when it comes to rental prices.
Regarding affordability, the report indicates that Connecticut, Massachusetts, and New Jersey are the most affordable states with Arizona, Nevada, and Florida being the least affordable.
The cost of living in Nevada is relatively low since it is considered less expensive on average than the rest of the United States. While some cities in the state are known to be cheaper than others, goods and services in Nevada cost 2.5% less than they do on average nationwide.
The cost of living in California is 39% higher than the national average. Housing is 102% higher than the national average, while utilities are 22% higher. When it comes to basic necessities such as food and clothing, groceries are around 10% higher than in the rest of the country, while clothing costs 10% higher.
The study is based on the MIT Living Wage Calculator, which uses the cost of housing, food, transportation, medical care and more. A Phoenix resident needs to make at least $32,835 to afford basic living expenses, or $38,043 before taxes, according to the calculator.
The cost of living in Arizona is 6% higher than the national average. Housing is 20% higher than the national average, while utilities are 1% lower.
Where is the cheapest place to live in AZ?
- Douglas. Douglas is the cheapest place to live in Arizona. ...
- San Luis. San Luis is the second cheapest place to live in Arizona. ...
- Eloy. Eloy is one of Arizona's cheapest towns for those who prefer a balance between urban and rural living. ...
- Rio Rico. ...
- Kingman. ...
- Bullhead City. ...
- Sun City. ...
- Yuma.
Arizona has plenty of affordable housing and retirement communities for seniors, and property taxes are lower than the national average. There's no sales tax on groceries, which is another big plus. There's plenty to keep active seniors busy, like local sporting events, the great outdoors and top-rated golf courses.
$14.47 is the 25th percentile. Wages below this are outliers. $29.17 is the 75th percentile.
Credible analysis shows that rent in metro Phoenix increased about 6.5 percent between September 2021 and September 2022. That's below the national average of a 9.5 percent increase. The increase in rent is being driven by two major factors: The law of supply and demand and skyrocketing inflation.
Classification | 5 person | 6 person |
---|---|---|
Extremely Low (30 %) | $35,140 | $40,280 |
Very Low (50%) | $50,500 | $54,250 |
Low (80%) | $80,800 | $86,800 |
- Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. ...
- Kansas. ...
- Alabama. ...
- Oklahoma. ...
- Georgia. ...
- Tennessee. ...
- Missouri. ...
- Iowa.
- Michigan. ...
- Arkansas. ...
- Ohio. ...
- West Virginia. Average Weighted Cost of Living Index: 90.18. ...
- Indiana. Average Weighted Cost of Living Index: 90.15. ...
- Tennessee. Average Weighted Cost of Living Index: 89.56. ...
- Missouri. Average Weighted Cost of Living Index: 89.54. ...
- Iowa. Average Weighted Cost of Living Index: 89.52.
According to the study, the poorest city in Arizona is San Luis. The median household income in the city is $41,648, which is well below Arizona's overall median household income of $61,529.
Best known for its magnificent natural beauty, affordable cost of living, steady home prices, abundant job opportunities, and high-quality healthcare and education, it is no wonder that many young professionals, families, and retirees are moving to Arizona.
Home to the breathtaking Grand Canyon, panoramic desert landscapes and great people, there's a lot to love about living in Arizona. Bordering California, Utah, New Mexico, and Nevada, and the country of Mexico, this beautiful landscape of this landlocked state attracts visitors in droves.
How much money should I save before moving to Arizona?
In Phoenix, moving out of your parents' house requires just under $5,000 in savings, according to the study — $4,964, to be exact. The average annual cost of necessary expenses in Phoenix is $17,125. According to GoBankingRates, a pretax annual salary of $41,848 allows people to live comfortably in Phoenix.