Cost of Living in Arizona: Cities Where Household Expenses are Highest and Lowest in 2025
What is the cost of living in Arizona? doxo breaks down key insights about Arizona’s household expenses, with a close look into how bills differ between towns and cities across the state.
According to doxo’s The Cost of Bills Index™ (COBI), the average household in Arizona pays $1,980 in monthly expenses. doxoINSIGHTS compares the cost of the ten most common household bills across different regions. This includes Utilities, Cable & Internet, Mobile Phone, Auto Loans, Auto Insurance, Life Insurance, Health Insurance, Alarm & Security, Rent, and Mortgage.
The data sheds light on Arizona’s cost of living through other metrics as well. For example, the “percent of household income” data point shows what percentage of their household income residents spend on bills each month.
By leveraging these tools, residents can gain a clearer understanding of their household expenses and optimize their financial planning.
Arizona ranks as the 22nd most expensive state in the US for household bills
According to doxo’s COBI report, Arizona is ranked as the 22nd most expensive state in the U.S. for household bills.
At $23,760 per year, Arizona’s household expenses, on average, are 4% lower than the US median of $24,695.
Absolute dollar amounts don’t tell the full story, however. doxo’s “Percentage of Household Income” data provides a more proportional look at bill spending in a particular location. Arizona households spend 29% of their income on bills.
COBI helps consumers understand how much it costs to live in one area as compared to another as it relates to the most common household bills. For COBI, the number 100 represents the national median and then, states, counties and cities are assigned a number, either above or below 100, based on how they compare to the national median. The COBI for Arizona is 96.
- Median Bill Cost per Household: $1,980 per month
- Cost of Bills Index(COBI): 96
- doxoINSIGHTS State Rank: #22
- Percent of Household Income Used for Bills: 29%
- Compared to the National Median: 4% lower
Arizona Household Expenses are 4% Lower Than the National Median
The average Arizona household pays $1,980 per month in the 10 most common household bills. The least expensive of these are alarm and security bills.
On the lowest end of the spectrum, the median monthly payment for alarm and security bills in Arizona is $65, compared to the national median of $74, making it approximately 12% lower than the median.
Monthly mortgage bills are the most significant of the 10 most common bills for Arizona residents. The median monthly mortgage payment is $1,552, compared to the national median of $1,775, making it 13% less expensive.
Median Arizona Household Bill Spending
| Bill Category | Median Arizona Monthly Bill | National Median Monthly Bill | Arizona Percent +/- National Median ($2,126) |
| Mortgage | $1,552 | $1,775 | 13% lower |
| Rent | $1,442 | $1,453 | 1% lower |
| Auto Loan | $500 | $470 | 6% higher |
| Auto Insurance | $125 | $105 | 19% higher |
| Health Insurance | $90 | $72 | 25% higher |
| Mobile Phone | $89 | $96 | 7% lower |
| Cable & Internet | $124 | $121 | 2% higher |
| Life Insurance | $64 | $60 | 7% higher |
| Alarm & Security | $65 | $74 | 12% lower |
| Total | $1,980 | $2,065 | 4% lower |
*Household Bill Pay Expense medians shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Palo Verde has the highest cost of living in Arizona for household bills
Residents of Palo Verde pay the highest household bills in the state of Arizona, at a median of $3,817 per month. The Cost of Bills Index (COBI) for Palo Verde is 185, meaning the median cost of bills in this city is 85% higher than the national median.
In proportion to household income, monthly bills in Palo Verde make up 32% of the median annual household income of $143,000.
Access detailed infographics about each city or town by clicking on the hyperlinks in the “City” column in the tables below. You can also browse doxoINSIGHTS’ regional bill comparison database to see infographics about more than 4,200 cities and towns across all 50 states in the US.
5 Most Expensive Arizona Cities for Household Bills
| Rank | City | Median Income | Monthly Bill Expenses Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Median | Percent of Household Income Used for Bills |
| 1 | Palo Verde | $143,000 | $3,817 | 185 | 85% higher | 32% |
| 2 | Paradise Valley | $182,150 | $3,118 | 151 | 51% higher | 21% |
| 3 | Scottsdale | $114,172 | $2,724 | 132 | 32% higher | 29% |
| 4 | Queen Creek | $125,236 | $2,632 | 127 | 27% higher | 25% |
| 5 | Gilbert | $121,420 | $2,620 | 127 | 27% higher | 26% |
*Household Bill Pay Expense medians shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Oatman has the lowest cost of living in Arizona for household bills
Oatman is the most affordable place in Arizona, with residents paying $826 on average for household bills, accounting for 15% of annual income of $65,186. The Cost of Bills Index (COBI) for Oatman is 40, meaning the median cost of bills in this city is 60% below the national median.
Wikieup is the second most affordable city in Arizona, with residents paying $826 per month on average.
Also on the list of the 5 least expensive cities in Arizona are Cibola ($837), Dennehotso ($839) and Valley Farms ($841).
5 Most Affordable Arizona Cities for Household Bills
| Rank | City | Median Income | Monthly Bill Expense Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Median | Percent of Household Income Used for Bills |
| 1 | Oatman | $65,186 | $826 | 40 | 60% lower | 15% |
| 2 | Wikieup | $55,875 | $826 | 40 | 60% lower | 18% |
| 3 | Cibola | $57,497 | $837 | 41 | 59% lower | 17% |
| 4 | Dennehotso | $22,981 | $839 | 41 | 59% lower | 44% |
| 5 | Valley Farms | $57,205 | $841 | 41 | 59% lower | 18% |
*Household Bill Pay Expense medians shown above reflect the ten most common bills paid, including housing (rent/mortgage).
Some individuals might be considering moving from a more expensive city to a less expensive one. For those making such decisions, doxoINSIGHTS can be a valuable resource. It allows consumers to compare household expenses in Arizona with average bills in various cities and states nationwide.