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California vs Arizona

Moving from California to Arizona lowers the 2024 price level by 10.043 points (110.720 to 100.677), and utilities and rents explain most of it: California's utilities parity is 66.582 points higher and its rent parity 47.542 points higher.

Updated

Measure California Arizona First − second
All-items price level 110.720 100.677 +10.043 points
Rent price level 154.346 106.804 +47.542 points
Home value $734,700±$1,307 $394,500±$1,474 +$340,200
Two-bedroom gross rent $2,103±$6 $1,541±$12 +$562
Household income $99,122±$310 $79,964±$407 +$19,158
Real estate taxes paid $5,124±$17 $1,879±$10 +$3,245

$4,000 of monthly spending in California scales to $3,637 in Arizona at the 2024 all-items price ratio.

BEA 2024 and ACS 2020–2024; ± marks the Census 90% margin. How to read a gap

Where a California-to-Arizona move saves, and where it does not

Not every category moves. Other services are essentially level, 102.591 in California against 102.808 in Arizona, and Arizona is in fact slightly dearer there. Goods are cheaper in Arizona by 10.737 points, a real but smaller saving. The big differences are the housing and utility lines, which is where a mover should look first.

Housing figures make the gap concrete. Arizona's median two-bedroom costs $562 less a month, $6,744 a year. For buyers the median home is $340,200 cheaper and the typical tax bill $3,245 lower. A mortgaged owner's monthly outlay drops by $1,143 at the median.

Incomes do not fall as far as one might expect, and price-adjusted income falls further. The median household income is $99,122 in California and $79,964 in Arizona. Real per capita personal income, which accounts for each state's prices, is $63,028 in California (rank 13) and $52,890 in Arizona (rank 43). A household that keeps a California salary while living in Arizona gains; one that takes an Arizona-market salary may not.

The state tax systems differ sharply. California's individual income tax supplied 46.8% of its fiscal 2025 collections, $3,270 per resident; Arizona's supplied 20.6%, $720 per resident, while general sales supplied 50.7%. Total collections were $6,989 per resident in California and $3,494 in Arizona.

Keep the first-year bill separate: moving charges, deposits and any home sale or purchase belong outside recurring monthly spending.

Price levels by category

MeasureCaliforniaArizonaGap
All items110.720100.677+10.043
Goods106.09895.361+10.737
Housing (rents)154.346106.804+47.542
Utilities158.89992.317+66.582
Other services102.591102.808−0.217
Real income per person (2017 $)$63,028$52,890+$10,138

How BEA builds category parities and real income

Two state tax mixes, FY2025

California: $275.04 billion, $6,989 per resident. Arizona: $26.64 billion, $3,494 per resident.

TaxCA shareAZ shareCA per residentAZ per resident
Individual income46.8%20.6%$3,270$720
General sales19.4%50.7%$1,359$1,772
Property1.3%5.4%$94$188
Motor fuel3.4%3.5%$239$123
Other selective sales4.6%10.5%$318$365
Corporate income14.3%6.6%$1,002$230
Licenses5.1%2.7%$353$94
Severance0.1%0.1%$4$3
Other taxes5.0%0.0%$350$0

What these collections do and do not show

Taxes on wages and purchases

TaxCaliforniaArizona
Income taxgraduated, 1% to 12.3% for 2025 (single filers)Not summarised on this site; see the Arizona Department of Revenue
State sales tax7.25% statewide plus district taxesNot summarised on this site; see the Arizona Department of Revenue

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