Is it cheaper to live in Phoenix or Santa Fe?

Santa Fe, NM is cheaper. Its monthly baseline of $1,310 (1BR rent + utilities) runs about 8% below Phoenix, AZ's $1,430, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Phoenix versus $47,000 in Santa Fe.

Which has lower taxes, Phoenix or Santa Fe?

Phoenix is taxed under Arizona's rules (a top state income tax rate of 2.50% and a 5.6% state sales tax); Santa Fe under New Mexico's (a top state income tax rate of 5.90% and a 4.875% state sales tax).

Phoenix vs Santa Fe Cost of Living 2026

Phoenix

Arizona

$1,430/mo est.

Santa Fe

New Mexico

$1,310/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,430 in Phoenix, AZ versus $1,310 in Santa Fe, NM. Overall, Santa Fe, NM is roughly 8% cheaper to live in day-to-day than Phoenix, AZ, driven mainly by rent.

Median household income is $77,041 in Phoenix, AZ and $70,110 in Santa Fe, NM — about 9% higher in Phoenix, AZ. 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.

Phoenix, AZ

Santa Fe, NM

Rent

Studio

$1,127

$969

+14% in Phoenix, AZ

1 Bedroom

$1,253

$1,167

+7% in Phoenix, AZ

2 Bedroom

$1,493

$1,559

+4% in Santa Fe, NM

3 Bedroom

$1,771

$1,733

+2% in Phoenix, AZ

Buying a Home

Median Home Value

$381,900

$411,500

+8% in Santa Fe, NM

Income

Median Household Income

$77,041

$70,110

+9% in Phoenix, AZ

Metro Median Wage (annual)

$51,380

$48,710

+5% in Phoenix, AZ

People & Lifestyle

Median Age

34.8 yr

46.4 yr

+11.6 yr in Santa Fe, NM

Homeownership

57.1%

62.8%

+5.7 pp in Santa Fe, NM

Bachelor's+ (25+)

32.3%

45.4%

+13.1 pp in Santa Fe, NM

Avg Commute

25.7 min

20.2 min

+5.5 min in Phoenix, AZ

Crime (per 100k/yr)

Violent Crime

799.6

843.3

+5% in Santa Fe, NM

Property Crime

2,338.9

5,189

+122% in Santa Fe, NM

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

Climate

Avg Annual Temperature

75.1°F

51.9°F

+23.2°F in Phoenix, AZ

Annual Precipitation

8.2 in

13.5 in

+5.3 in in Santa Fe, NM

Gas

Regular Gasoline

$5.09/gal

$3.62/gal

+29% in Phoenix, AZ

Area: West Coast (PADD 5) vs Gulf Coast (PADD 3).

Public Transit

Base Fare (one-way)

$2.00

—

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

Utilities

Electricity (¢/kWh)

15.2

14.1

+7% in Phoenix, AZ

Natural Gas ($/MCF)

$22.44

$11.90

+47% in Phoenix, AZ

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

Groceries

Milk (gal)

$4.82

about equal

Bread (lb)

$2.04

about equal

Eggs (doz)

$2.19

about equal

Ground Beef (lb)

$7.36

about equal

Chicken (lb)

$2.01

about equal

Bananas (lb)

$0.70

about equal

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

State Taxes

Sales Tax (AZ / NM)

5.6%

4.875%

+0.7 pp in AZ

Income Tax (top rate)

2.50%

5.90%

+3.4 pp in NM

Phoenix vs Santa Fe — FAQ

Is it cheaper to live in Phoenix or Santa Fe?: Santa Fe, NM is cheaper. Its monthly baseline of $1,310 (1BR rent + utilities) runs about 8% below Phoenix, AZ's $1,430, mainly because of rent.
How much more do you need to earn to live in Phoenix than in Santa Fe?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $50,000 a year in Phoenix versus $47,000 in Santa Fe.
Which has lower taxes, Phoenix or Santa Fe?: Phoenix is taxed under Arizona's rules (a top state income tax rate of 2.50% and a 5.6% state sales tax); Santa Fe under New Mexico's (a top state income tax rate of 5.90% and a 4.875% 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).