Phoenix vs Houston
Cost of Living (2026)

Houston is 9% more affordable than Phoenix. Plus, Texas has no state income tax vs Arizona's 2.5%.

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At a glance

Phoenix, AZ

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

Houston, TX

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

Cost breakdown by category

CategoryPhoenix indexHouston indexDifference
Housing130118 ✓-12%
Groceries9587 ✓-8%
Transportation9688 ✓-8%
Healthcare9788 ✓-9%
Utilities9689 ✓-7%

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

Salary equivalency: Phoenix → Houston

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

Salary in PhoenixEquivalent in HoustonDifference
$60,000$53,000$-7,000
$80,000$70,000$-10,000
$100,000$88,000$-12,000
$130,000$114,000$-16,000
$150,000$132,000$-18,000
$200,000$176,000$-24,000

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

When comparing the cost of living between Phoenix, AZ and Houston, TX, Houston comes out significantly more affordable with a COL index of 91 versus 100 for Phoenix — a difference of approximately 9%.

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

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