What Is a Good Salary in Arizona?

A “good salary” is a highly personal concept, shaped by individual financial aspirations, family dynamics, and preferred ways of life. What one person considers sufficient income to live comfortably in a particular area might be inadequate for another, even within the same geographic boundaries. This definition is not static, as it evolves with changing life stages, economic conditions, and personal priorities. Understanding what constitutes a desirable income requires a comprehensive look at how that income interacts with expenses, savings goals, and overall quality of life.

Defining a good salary involves a thorough assessment of personal financial circumstances. For instance, an individual’s debt obligations, such as student loans or credit card balances, directly impact how much disposable income remains after essential expenditures. Family size also plays a significant role, as households with dependents typically require a higher income to cover increased costs related to food, education, and healthcare. Beyond basic needs, lifestyle choices, like frequent dining out or regular travel, necessitate greater financial resources. Personal values also influence this perception, as some individuals prioritize saving for retirement or a home, while others may focus on immediate experiences.

Cost of Living in Arizona

The cost of living in Arizona is generally above the national average, varying significantly across its diverse regions. It can be approximately 6.4% to 18% higher than the national average. Housing represents a substantial portion of expenses, with average rental costs for a one-bedroom apartment projected around $1,250 statewide in 2025.

Housing expenses vary considerably within metropolitan areas. In Phoenix, average rents for all property types were about $1,900 in 2025, with one-bedroom apartments averaging around $1,120 to $1,320. Tucson offers more affordable housing, with average rents around $999 to $1,600 for all property types in 2025, and one-bedroom apartments averaging approximately $997.

Flagstaff presents higher housing costs, with average rents around $1,709 to $2,250 in 2025 for all property types, and one-bedroom units averaging $1,709 to $1,947. For home purchases, median prices in 2024 ranged from $303,400 in Tucson to $721,200 in Scottsdale. To afford a median-priced home, a household needed a monthly income of approximately $9,141 as of October 2024.

Utility costs contribute to overall expenses, with the statewide average for monthly utilities estimated at $248.44 to $408. Specifically, electricity bills average around $232 per month across Arizona, increasing to $248 per month in Phoenix. In Tucson, average basic utility costs are closer to $299.96 monthly.

Transportation expenses are a notable factor, with an individual spending approximately $9,890 annually, and a family of four spending $16,589. Public transit options exist in larger cities, with a one-way fare costing $2.00 and a monthly pass around $64.00. Fuel prices average $3.67 per gallon across the state. Transportation costs in Arizona are generally higher than the national average.

Monthly grocery expenses average $278.83 to $300 per person. Grocery costs in the state are often lower than the national average, by 3.9% to 14.6%.

Healthcare costs are relatively low compared to the national average. Monthly employer-sponsored health insurance premiums average $129.42. A full-price health insurance Silver plan for a 40-year-old averages $529 per month, rising to $1,691 per month for a family of four. Additional annual miscellaneous expenses can include $2,400 for entertainment, $600 for personal care services, and $700 for other goods and services.

Average Income Levels in Arizona

The median household income in Arizona was $76,872 in 2023, adjusted for inflation, with a projection of $67,000 for 2025. More recent data for October 2024 indicates a figure of $72,581. The average household income in Arizona was reported as $104,138 in 2024.

For individuals, the per capita income in Arizona was approximately $40,736 in 2024. The average weekly wage for workers was $1,191 in 2025, translating to an annual income of $61,932. For full-time workers, the average salary was $76,979 in 2024.

The living wage in Arizona is estimated at $23.40 per hour for an individual, equating to roughly $48,672 annually. This figure covers fundamental necessities like housing, transportation, food, and healthcare, but does not typically include discretionary spending, savings, or debt repayment.

Factors Affecting Earning Potential

Several factors significantly influence earning potential within Arizona, creating a varied income landscape across professions and locations. The industry plays a substantial role in determining salary levels. For instance, workers in financial activities had the highest average weekly wage at $1,533 in 2025, while those in leisure and hospitality earned less, averaging $586 per week.

Experience level and educational background directly correlate with higher earning potential. Specialized skills, certifications, and advanced degrees often command higher salaries due to increased expertise and a more limited talent pool. For example, the average annual pay for a general education professional was $86,051 in 2025. Positions requiring extensive experience or niche skills typically offer compensation above statewide averages.

Geographic location further dictates earning potential, as economic opportunities and cost of living vary by city and region. Major metropolitan areas like Phoenix and Tucson offer more job opportunities and potentially higher salaries compared to smaller towns or rural areas. However, these urban centers also come with a higher cost of living, which can offset increased income. A higher salary in a major city might not necessarily translate to greater purchasing power compared to a lower salary in a more affordable part of the state.