Is it cheaper to live in Memphis or Phoenix?

Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 22% below Phoenix, AZ's $1,430, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $50,000 in Phoenix.

Which has lower taxes, Memphis or Phoenix?

Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Phoenix under Arizona's (a top state income tax rate of 2.50% and a 5.6% state sales tax).

Memphis vs Phoenix Cost of Living 2026

Memphis

Tennessee

$1,110/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 $1,110 in Memphis, TN versus $1,430 in Phoenix, AZ. Overall, Memphis, TN is roughly 22% cheaper to live in day-to-day than Phoenix, AZ, driven mainly by rent.

Median household income is $51,211 in Memphis, TN and $77,041 in Phoenix, AZ — about 34% higher in Phoenix, AZ. Tennessee has no state income tax and a 7% state sales tax; Arizona has a top state income tax rate of 2.50% and a 5.6% state sales tax.

Memphis, TN

Phoenix, AZ

Rent

Studio

$877

$1,127

+29% in Phoenix, AZ

1 Bedroom

$948

$1,253

+32% in Phoenix, AZ

2 Bedroom

$1,073

$1,493

+39% in Phoenix, AZ

3 Bedroom

$1,281

$1,771

+38% in Phoenix, AZ

Buying a Home

Median Home Value

$157,100

$381,900

+143% in Phoenix, AZ

Income

Median Household Income

$51,211

$77,041

+50% in Phoenix, AZ

Metro Median Wage (annual)

$46,890

$51,380

+10% in Phoenix, AZ

People & Lifestyle

Median Age

34.3 yr

34.8 yr

+0.5 yr in Phoenix, AZ

Homeownership

46.0%

57.1%

+11.1 pp in Phoenix, AZ

Bachelor's+ (25+)

28.2%

32.3%

+4.1 pp in Phoenix, AZ

Avg Commute

21.3 min

25.7 min

+4.4 min in Phoenix, AZ

Crime (per 100k/yr)

Violent Crime

2,507.5

799.6

+68% in Memphis, TN

Property Crime

6,965.8

2,338.9

+66% in Memphis, TN

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

Climate

Avg Annual Temperature

63.1°F

75.1°F

+12.0°F in Phoenix, AZ

Annual Precipitation

53.7 in

8.2 in

+45.5 in in Memphis, TN

Gas

Regular Gasoline

$4.35/gal

$5.57/gal

+28% in Phoenix, AZ

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

Public Transit

Base Fare (one-way)

$1.75

$2.00

+14% in Phoenix, AZ

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

Utilities

Electricity (¢/kWh)

15.1

15.6

+3% in Phoenix, AZ

Natural Gas ($/MCF)

$15.54

$19.69

+27% in Phoenix, AZ

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

Groceries

Milk (gal)

$4.16

$4.37

+5% in Phoenix, AZ

Bread (lb)

$1.73

$2.10

+21% in Phoenix, AZ

Eggs (doz)

$2.19

$2.25

+3% in Phoenix, AZ

Ground Beef (lb)

$6.56

$7.23

+10% in Phoenix, AZ

Chicken (lb)

$1.90

$2.14

+12% in Phoenix, AZ

Bananas (lb)

$0.61

$0.74

+21% in Phoenix, AZ

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

State Taxes

Sales Tax (TN / AZ)

5.6%

+1.4 pp in TN

Income Tax (top rate)

None

2.50%

+2.5 pp in AZ

Memphis vs Phoenix — FAQ

Is it cheaper to live in Memphis or Phoenix?: Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 22% below Phoenix, AZ's $1,430, mainly because of rent.
How much more do you need to earn to live in Memphis than in Phoenix?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $50,000 in Phoenix.
Which has lower taxes, Memphis or Phoenix?: Memphis is taxed under Tennessee's rules (no state income tax and a 7% 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).