Median one-bedroom rent across the cities we track is $1,253 in Arizona versus $889 in New Mexico. Overall, New Mexico runs roughly 29% cheaper on rent than Arizona, its main day-to-day cost driver.
Median household income across tracked cities is $77,041 in Arizona and $65,604 in New Mexico — about 15% higher in Arizona. Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax; New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
State Taxes
Sales Tax
5.6%
4.875%
+0.7 pp in Arizona
Income Tax (top rate)
2.50%
5.90%
+3.4 pp in New Mexico
Housing (median across tracked cities)
Median 1BR Rent
$1,253
$889
+29% in Arizona
Median Home Value
$364,300
$266,700
+27% in Arizona
Income (median across tracked cities)
Median Household Income
$77,041
$65,604
+15% in Arizona
Climate (median across tracked cities)
Avg Annual Temperature
75.1°F
57.2°F
+17.9°F in Arizona
Arizona vs New Mexico — FAQ
- Is it cheaper to live in Arizona or New Mexico?
- New Mexico is cheaper on rent — its median one-bedroom of $889 runs about 29% below Arizona's $1,253, based on the cities we track in each state.
- How much more do you need to earn to live in Arizona than in New Mexico?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $50,000 a year in Arizona versus $36,000 in New Mexico.
- Which has lower taxes, Arizona or New Mexico?
- Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax. New Mexico has a top state income tax rate of 5.90% and a 4.875% state sales tax.
Housing, income, and climate are medians across the 3/1 cities we track in Arizona/New Mexico — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.