Unexpected Costs of Living in Phoenix, Arizona: Expenses You Must Know About

Whenever you move to a new city, there are always going to be costs and nuances that you might not be aware of. This blog will explain some of the unexpected expenses that come with living in Phoenix, Arizona. Let’s dive into five of these unexpected costs:

1. Utility Prices: Utility costs can vary depending on the size of your home, the number of air conditioning units you have, and your electricity consumption. In Phoenix, where the desert climate makes air conditioning essential, electric bills can spike during the scorching summer months. The average Phoenician pays around $408 per month for utilities. This includes electricity (about $131 per month), gas ($116 per month), water ($53 per month), internet service ($77 per month), and TV, which varies based on the type of service you choose.

It’s essential to factor in the number of air conditioning units you have, as this can significantly affect your electricity bill. The more units you have and the larger your space, the more you can expect to pay. Some electricity companies in Phoenix offer plans for stabilizing your bills, averaging your use over the whole year, and on-peak/off-peak hour plans.

2. Taxes: Arizona offers some significant tax advantages. The state’s income tax is a flat 2.5%, making it one of the lowest income tax rates in the country. Property taxes in Arizona are also relatively low, averaging about 0.64% for every $100,000 of assessed property value. However, the state makes up for it with sales tax, which is around 8.6%. So, while you’ll save on income and property taxes, you’ll pay more for the things you buy.

3. Homeowners Insurance: Homeowners insurance in Arizona is approximately 16% lower than the national average, costing around $127 per month. This cost can vary based on your location, the value of your home, and your insurer. Additionally, it’s recommended to bundle your homeowners insurance with your auto insurance to get a discount.

4. Car Registration Fees: Car registration fees in Arizona can be higher than in some other states. The state uses a complex formula based on a vehicle’s value to determine the registration fee. Be prepared for a bit of a shock when it’s time to renew your registration.

5. Household Expenses:

  • Termite Control: Subterranean termites are prevalent in Arizona, and if left untreated, they can cause significant damage to your home. Treating for termites typically costs around $500 to $600 with a one-year warranty.
  • Pest Control: With the desert’s unique critters, it’s a good idea to have regular pest control services, which can cost between $60 and $100 per visit.
  • Yard Maintenance: Even if you don’t have a traditional lawn, you’ll want to maintain your outdoor space. Landscaping companies can blow debris from your yard and maintain the look of your desert landscape.
  • Pool Maintenance: Pool ownership is common in Phoenix due to the hot climate. Regular pool maintenance can cost around $60 to $100 per month, which includes chemical balancing, cleaning, and equipment checks. If you own a pool, it’s an expense you’ll want to budget for.

In conclusion, while living in Phoenix, Arizona offers many advantages, including a low cost of living compared to many other parts of the United States, it’s important to be aware of these unexpected expenses. Understanding these costs can help you plan your budget and enjoy all that Phoenix has to offer without any financial surprises.


To end this all, this Unexpected Cost of Living in Phoenix is to help others gain insight into the city of Phoenix and true information about Living in Arizona. We have so many people contacting us who are moving to the Scottsdale/Phoenix area, and we are so happy to make the transition easier for them. If you have any additional questions about all the things that come with living in Phoenix Arizona, reach out to us at info@cookandassociatesaz.com or by phone at (480)660-5974!