Is it cheaper to live in Madison or Phoenix?

Madison, WI is cheaper. Its monthly baseline of $1,410 (1BR rent + utilities) runs about 1% below Phoenix, AZ's $1,430, mainly because of electricity costs.

How much more do you need to earn to live in Madison than in Phoenix?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Madison versus $50,000 in Phoenix.

Which has lower taxes, Madison or Phoenix?

Madison is taxed under Wisconsin's rules (a top state income tax rate of 7.65% and a 5% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% state sales tax).

Madison vs Phoenix Cost of Living 2026

Madison

Wisconsin

$1,410/mo est.

Phoenix

Arizona

$1,430/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,410 in Madison, WI versus $1,430 in Phoenix, AZ. Overall, Madison, WI is roughly 1% cheaper to live in day-to-day than Phoenix, AZ, driven mainly by electricity costs.

Median household income is $76,983 in Madison, WI and $77,041 in Phoenix, AZ. Wisconsin has a top state income tax rate of 7.65% and a 5% state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.

Madison, WI

Phoenix, AZ

Rent

Studio

$1,018

$1,127

+11% in Phoenix, AZ

1 Bedroom

$1,219

$1,253

+3% in Phoenix, AZ

2 Bedroom

$1,432

$1,493

+4% in Phoenix, AZ

3 Bedroom

$1,766

$1,771

+0% in Phoenix, AZ

Buying a Home

Median Home Value

$346,900

$381,900

+10% in Phoenix, AZ

Income

Median Household Income

$76,983

$77,041

+0% in Phoenix, AZ

Metro Median Wage (annual)

$58,080

$51,380

+12% in Madison, WI

People & Lifestyle

Median Age

31.8 yr

34.8 yr

+3.0 yr in Phoenix, AZ

Homeownership

46.6%

57.1%

+10.5 pp in Phoenix, AZ

Bachelor's+ (25+)

59.2%

32.3%

+26.9 pp in Madison, WI

Avg Commute

19.4 min

25.7 min

+6.3 min in Phoenix, AZ

Crime (per 100k/yr)

Violent Crime

259.5

799.6

+208% in Phoenix, AZ

Property Crime

1,884.5

2,338.9

+24% in Phoenix, AZ

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

46.5°F

75.1°F

+28.6°F in Phoenix, AZ

Annual Precipitation

34.5 in

8.2 in

+26.3 in in Madison, WI

Gas

Regular Gasoline

$3.94/gal

$5.09/gal

+29% in Phoenix, AZ

Area: Midwest (PADD 2) vs West Coast (PADD 5).

Public Transit

Base Fare (one-way)

—

$2.00

Adult base one-way fare — — vs Valley Metro (2026).

Utilities

Electricity (¢/kWh)

19.7

15.2

+23% in Madison, WI

Natural Gas ($/MCF)

$11.79

$22.44

+90% in Phoenix, AZ

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

$4.82

+12% in Phoenix, AZ

Bread (lb)

$1.66

$2.04

+23% in Phoenix, AZ

Eggs (doz)

$3.63

$2.19

+40% in Madison, WI

Ground Beef (lb)

$6.77

$7.36

+9% in Phoenix, AZ

Chicken (lb)

$2.10

$2.01

+4% in Madison, WI

Bananas (lb)

$0.62

$0.70

+14% in Phoenix, AZ

Average prices — Midwest vs West (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (WI / AZ)

5.6%

+0.6 pp in AZ

Income Tax (top rate)

7.65%

2.50%

+5.2 pp in WI

Madison vs Phoenix — FAQ

Is it cheaper to live in Madison or Phoenix?: Madison, WI is cheaper. Its monthly baseline of $1,410 (1BR rent + utilities) runs about 1% below Phoenix, AZ's $1,430, mainly because of electricity costs.
How much more do you need to earn to live in Madison than in Phoenix?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Madison versus $50,000 in Phoenix.
Which has lower taxes, Madison or Phoenix?: Madison is taxed under Wisconsin's rules (a top state income tax rate of 7.65% and a 5% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).