Memphis vs Phoenix: cost of living compared
Phoenix is 31% more expensive than Memphis overall. Memphis (TN) has no state income tax; AZ tops out around 2.5%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Memphis offers a significantly lower overall cost of living compared to Phoenix, which aligns closely with the national average. This substantial difference is primarily driven by housing expenses, which are considerably more affordable in Memphis. Other categories like food, transportation, and healthcare also contribute to Memphis being a more budget-friendly option, making it an attractive choice for those prioritizing cost savings.
Housing
The gap in housing costs between these two metros is quite large, with both median home prices and typical rental rates for a one-bedroom dwelling being much lower in Memphis. Phoenix's housing market is notably above the national average. While specific ownership costs like property taxes and insurance vary, the initial investment for buying or the monthly outlay for renting is considerably less in Memphis, impacting long-term financial planning.
Taxes and everyday costs
Daily expenses for transportation, groceries, and healthcare are all more affordable in Memphis. Utilities, however, are noticeably higher in Phoenix. A key financial difference is Arizona's state income tax, which is absent in Tennessee. This means more of your gross income could be retained in Memphis, further reducing the cost of everyday living compared to Phoenix.
Lifestyle trade-offs
Phoenix boasts a desert climate with abundant sunshine and very hot summers, while Memphis experiences a humid subtropical climate with hot, humid summers and milder winters. Getting around in both cities typically relies on personal vehicles, though Phoenix's commutes are slightly longer. Phoenix generally feels more expansive and modern, whereas Memphis has a rich historical character and a more established urban fabric.
Bottom line
Moving from Phoenix to Memphis would likely result in substantial savings across nearly all budget categories, especially housing. The absence of state income tax in Tennessee further enhances financial flexibility. Conversely, a move from Memphis to Phoenix would entail a noticeable increase in overall expenses, with housing and utilities demanding a much larger portion of a household's budget, requiring careful financial adjustment.
| Measure | Memphis, TN | Phoenix, AZ |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 102 |
| Housing index | 54 | 105 |
| Transportation index | 88 | 100 |
| Food index | 85 | 96 |
| Healthcare index | 88 | 98 |
| Utilities index | 92 | 112 |
| Misc index | 78 | 92 |
| Median home price | $178,000 | $388,000 |
| Median 1-bedroom rent | $900/mo | $1,450/mo |
| Average commute | 25 min | 28 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Phoenix home with the True Cost Calculator.