Comprehensive salary data, cost of living, and employment information for Phoenix, Arizona. Population: 1,608,139.
Reviewed by Alexander O.M., MBA, BSc Engineering•Updated
Phoenix has grown from a secondary sunbelt metro into one of the fastest-growing major US cities over the past fifteen years, and the economy has diversified meaningfully from its earlier reliance on construction and retirement services. The $62,055 median household income is slightly below the national average, and the cost-of-living index of 103 sits marginally above baseline — but Phoenix housing costs have risen sharply since 2020, with median home prices in Maricopa County up 50% or more compared to 2019. The most consequential economic shift has been the semiconductor cluster: TSMC's massive Fab 21 complex in north Phoenix is expected to reach 6,000 employees at full build-out, with Intel's Chandler campus, NXP, and On Semiconductor all operating major facilities in the metro. Banner Health — one of the largest non-profit healthcare systems in the country — is the state's largest private employer. Arizona's flat 2.5% state income tax is among the lowest flat rates in the US, which improves take-home pay meaningfully at every income level. The Phoenix job market is particularly strong for entry- and mid-career professionals relocating from higher-cost California metros. Full detail follows.
Median Individual
$34,952
per year
Median Household
$62,055
per year
Cost of Living
103
Average (US avg = 100)
Population
1.6M
Salary Breakdown for Phoenix
The median individual income in Phoenix is $34,952 per year, which works out to approximately $2,913/month or $16.80/hour for full-time workers. The median household income is $62,055.
Cost of Living Adjusted Salary
Phoenix's cost of living index is 103 (national average = 100). The median salary of $34,952 in Phoenix has the purchasing power of approximately $33,934 at the national average cost of living. Phoenix is roughly in line with the national average, making it a balanced option for salary vs expenses.