Houston vs Phoenix
Cost of Living (2026)

Houston is 10% less expensive than Phoenix. Plus, Texas has no state income tax vs Arizona's 2.5%.

Enter your salary → get exact comparison

At a glance

Houston, TX

COL index91 ✓
State income taxNone ✓
Avg 1BR rent$1,250/mo ✓
Median home price$290K ✓
VS

Phoenix, AZ

COL index100
State income tax2.5%
Avg 1BR rent$1,450/mo
Median home price$395K

Cost breakdown by category

CategoryHouston indexPhoenix indexDifference
Housing118 ✓130+12%
Groceries87 ✓95+8%
Transportation88 ✓96+8%
Healthcare88 ✓97+9%
Utilities89 ✓96+7%

Source: C2ER Cost of Living Index 2026. Index = 100 is US average. ✓ indicates lower cost.

Salary equivalency: Houston → Phoenix

What salary in Phoenix gives you the same purchasing power as your Houston salary?

Salary in HoustonEquivalent in PhoenixDifference
$60,000$68,000+$8,000
$80,000$91,000+$11,000
$100,000$114,000+$14,000
$130,000$148,000+$18,000
$150,000$171,000+$21,000
$200,000$228,000+$28,000

Houston vs Phoenix: Full Cost of Living Comparison (2026)

When comparing the cost of living between Houston, TX and Phoenix, AZ, Houston comes out significantly more affordable with a COL index of 91 versus 100 for Phoenix — a difference of approximately 10%.

State income tax impact

Texas has no state income tax, giving Houston workers an immediate 2.5% take-home pay advantage over Phoenix workers who pay Arizona's 2.5% state income tax.

Housing costs

The median home price in Houston is $290,000, compared to $395,000 in Phoenix. Average 1-bedroom rent is $1,250/month in Houston versus $1,450/month in Phoenix.

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