When considering a move, the cost of living Arizona vs Tennessee is often a crucial factor for homeowners. Both states offer unique lifestyles and opportunities, but understanding how the economic landscape differs between them can help inform your decision-making process.

In this article, we’ll examine the various elements that make up the cost of living Arizona vs Tennessee. We’ll explore income levels, job markets, and industries driving each state’s economy. Moreover, we’ll contrast the various levies – including state salary taxes and property assessments – as well as energy costs such as gas, water, and electricity bills.

Grocery prices also play a significant role in daily expenses; therefore, we will examine grocery shopping habits and average spending differences across Arizona and Tennessee. In addition to these factors affecting day-to-day life expenses,

Table of Contents:

Income and Tax Rates in Arizona vs Tennessee

When considering a move to Tennessee, it’s essential to compare the income levels and tax rates between your current state of residence and your potential new home. Comparing the cost of living Arizona vs Tennessee, let’s take a look at the income levels and tax rates.

State Income Tax Differences Between the Two States

One significant financial advantage of living in Tennessee is its lack of state income tax. While Arizona imposes a state income tax rate ranging from 2.59% to 4.50%, depending on your taxable income level, residents in Tennessee only pay taxes on interest and dividend incomes. This difference can lead to substantial savings for those relocating from Arizona.

Property Taxes Comparison

While property taxes vary by county within each state, overall property tax rates are generally lower in Arizona than they are in Tennessee. WalletHub’s figures display that Arizona homeowners pay an average effective property tax rate of 0.62%, in comparison to Tennessee’s rate of 0.74%. 

However, it’s crucial to weigh the pros and cons of each location before making a final decision on where to settle down. Other factors such as utilities, transportation expenses, and grocery prices associated with residing in these territories should also be considered.

Utility Bills Comparison Between Arizona and Tennessee

Utility bills can vary greatly depending on factors such as weather patterns, energy efficiency measures in place, and local utility providers. Although not a big monthly expense, this is definitely something you should consider when comparing the cost of living Arizona vs Tennessee.

Average Gas Bill per Month in Both States

In both Arizona and Tennessee, the average gas bill per month falls within a similar range. According to the EIA, Arizona’s average monthly gas bill is $62 while Tennesseans pay approximately $67. 

Energy Information Administration (EIA), residents of Arizona pay an average monthly gas bill of $62 while Tennesseans pay around $67 for natural gas usage. Keep in mind that these figures are averages; individual household consumption will vary based on factors like heating system efficiency or cooking habits.

Average Water Bill per Month in Both States

The average water bill also shows some similarities between the two states but may differ slightly due to regional water supply costs or conservation efforts. In general, Arizonans pay approximately $40-$50 per month for their water services while Tennesseans see a slightly higher monthly expense at around $45-$55 according to Circle of Blue’s annual survey.

It is essential to research local utility providers’ rates and discounts available for energy-efficient upgrades or conservation programs offered by each provider before making any final decisions about where you want to live. 

Tennessee offers various resources online, such as the Tennessee Department of Environment and Conservation, to help residents understand their utility costs better and find ways to save on energy consumption. By exploring the options available, you can make a better-informed choice when deciding to relocate and be certain that Tennessee is an ideal fit for your needs.

Key Takeaway: 


Comparing utility bills between Arizona and Tennessee is important when considering a move or vacation. While the average gas bill per month falls within a similar range in both states, Tennesseans pay slightly more for water services, making it essential to research local utility providers’ rates and discounts available before making any final decisions about where to live.

Grocery Costs for a Family of Two in Arizona vs Tennessee

One significant factor that affects daily expenses is grocery costs. For families relocating from Arizona, you may find some noticeable variations in grocery spending.

Weekly Grocery Spending Comparisons

In general when comparing the cost of living Arizona vs Tennessee, Arizonans tend to spend slightly less on groceries than Tennesseans. According to the Bureau of Labor Statistics, households in Phoenix spent an average of $6,095 per year on food at home while those in Nashville allocated around $7,068 annually (source). Although these figures represent larger cities within each state and may not perfectly reflect rural areas or smaller towns’ costs, they provide a helpful baseline for comparison purposes.

Major Retail Chains Offering Affordable Options

Families can still maintain their budgets by shopping smartly and taking advantage of affordable options offered by major retail chains operating throughout both states. Stores like Walmart, Target, and Aldi are known for providing competitively priced groceries nationwide. Additionally, utilizing local farmers’ markets such as the Nashville Farmers’ Market or Tucson’s Heirloom Farmers Markets can also help you save money while supporting local businesses and enjoying fresh, seasonal produce.

By understanding the grocery cost differences between Arizona and Tennessee, families can better prepare for their move and adjust their budgets accordingly. This knowledge will contribute to a smoother transition into your new life in The Volunteer State.

Housing Market Analysis – Arizona vs Tennessee

Both Arizona and Tennessee offer relatively affordable housing options with median home values ranging between $200,000-$250,000. 

It’s essential to analyze housing markets before making any decision on where to move or invest in properties within these states, especially when comparing the cost of living Arizona vs Tennessee.

Median Home Values Comparison

In Arizona, the median home value is around $330,000, while in Tennessee, it stands at approximately $230,000. This significant difference in price can greatly impact your budget and lifestyle choices when relocating from one state to another. It’s important to research local neighborhoods and compare property prices in both states before making a final decision.

Renting versus Buying Considerations

Selecting whether to rent or buy a home is contingent on various components, such as monetary steadiness, job assurance and personal inclinations. In general terms, renting may be more suitable for those who are not ready for long-term commitments or have uncertain future plans, whereas buying could provide better investment opportunities and potential tax benefits over time.

To make an informed decision about whether renting or buying would suit you best when comparing the cost of living Arizona vs Tennessee, consider consulting with professional real estate agents who specialize in relocation services. They can help guide you through the process by providing valuable insights based on their experience working with clients facing similar challenges during interstate moves across America.

It’s also important to note that the cost of living in Arizona is higher than the national average, while Tennessee’s cost of living is lower. According to economic research, Arizona’s cost of living index is 107.2, while Tennessee’s is 89.6. This comparison shows that Tennessee is more affordable than Arizona, which could be a significant factor to consider when deciding where to move.

Cost of Living Comparison: Arizona vs Tennessee

Are you considering moving to Tennessee but wondering how it compares to Arizona in terms of cost of living? It’s a valid concern, and we’re here to help you make an informed decision. In this article, we’ll compare the cost of living in Arizona and Tennessee, so you can decide which state is the best fit for you without needing a special cost of living calculator.

Cost of Housing

One of the most significant expenses for homeowners is housing. In Tennessee, the median home price is $185,000, while in Arizona, it’s $255,000. However, keep in mind that the cost of housing can vary depending on the city or town you choose to live in, which can substantially affect the overall comparison of cost of living Arizona vs Tennessee.


When it comes to utilities, Tennessee is slightly more expensive than Arizona. The average monthly utility bill in Tennessee is $155, while in Arizona, it’s $147. However, keep in mind that this can vary depending on the size of your home and your energy usage habits.


Transportation costs are relatively similar in both states. The average cost of gas in Tennessee is $2.25 per gallon, while in Arizona, it’s $2.32 per gallon. However, keep in mind that if you live in a more rural area, you may need to drive more frequently, which can increase your transportation costs.


When it comes to groceries, Tennessee is slightly more expensive than Arizona. The cost of groceries in Tennessee is 1.2% higher than the national average, while in Arizona, it’s 0.5% lower than the national average. However, this can vary depending on where you shop and what you buy.

Renters Insurance Premiums Comparison

When relocating to Tennessee, it’s essential to consider the cost of renters insurance premiums. These costs can vary depending on location but are generally quite similar across both Arizona and Tennessee. To ensure you’re getting the best coverage at an affordable price, research and compare different insurance providers in both states.

Factors Affecting Renters Insurance Costs

The cost of renters insurance is influenced by several factors such as your geographic location, type of residence, personal property value, deductible amount chosen, and any additional coverage options selected. For example, living in a high-crime area or flood-prone zone may increase your premium rates due to increased risk exposure for insurers. Be sure to take these factors into account when comparing quotes from various providers.

Comparing Insurance Providers

To find the most suitable renter’s insurance policy for your needs in Tennessee or Arizona, start by obtaining multiple quotes from reputable companies like State Farm, Allstate, and Liberty Mutual. This will allow you to evaluate each provider based on their offered coverages and pricing structures while ensuring that all necessary aspects are covered within your policy selection process accordingly.

In addition to considering affordability when selecting a renter’s insurance provider during relocation planning stages between these two regions/states respectively speaking thereof overall likewise too, it’s also essential to research customer satisfaction ratings and reviews available online through various resources such as J.D. Power or the Better Business Bureau (BBB). This will help ensure that you choose a provider with an excellent track record of service quality and responsiveness when handling claims filed by policyholders alike.

Relocation Costs from Arizona to Tennessee

When planning a move from one state to another, it’s important to consider the cost of living Arizona vs Tennessee.

The national average cost of moving 1,200 miles is around $5,600, which includes expenses such as hiring professional movers or renting moving containers and trucks, as well as purchasing furniture accessories, window coverings, rugs, lighting, outdoor gear, and more.

Average Moving Expenses for Long-Distance Moves

The total cost of your move will depend on various factors, such as the size of your household items and the distance between Arizona and Tennessee. 

According to the national average, long-distance moves can range from $4,000 to $7,500. To ensure you get the best deal, it’s essential to get multiple quotes from reputable moving companies. You can also consider DIY options like renting a truck or using portable storage containers if you’re looking for more budget-friendly alternatives.

Stress-Related Factors Associated with Relocating

Moving can be an overwhelming experience due to several stress-related factors that come with relocating across states. To minimize this stress during your transition, it’s important to create a detailed moving plan well in advance. 

Research about life in Tennessee, including housing options (Zillow TN listings), schools (GreatSchools.org), local attractions (TripAdvisor), job opportunities (Indeed), and healthcare facilities. Pack efficiently by decluttering unnecessary belongings beforehand, and contact utility providers at both locations ahead of time. Finally, give yourself ample time to settle in and explore your new surroundings.

Moving from Arizona to Tennessee can be a significant change, but with proper planning and preparation, you’ll soon enjoy the benefits of living in The Volunteer State.

Weather Conditions in Arizona vs Tennessee

A lot of people don’t think to factor in the local weather when comparing the cost of living Arizona vs Tennessee, but it’s essential to consider how extreme temperatures can affect your lifestyle choices, including utility bills consumption rates due to increased energy usage during specific seasons. 

Arizona’s Climate Characteristics

The climate in Arizona is predominantly arid and desert-like. Summers are hot with average high temperatures reaching up to 100°F or more, while winters are mild with lows around the mid-30s. This type of climate may require significant air conditioning use during the summer months, which can lead to higher electricity costs. 

You can learn more about Arizona’s climate here.

Tennessee’s Weather Patterns

In contrast, Tennessee experiences a humid subtropical climate characterized by four distinct seasons. Summers are warm and humid with highs averaging around 85°F, while winters tend to be cooler with lows ranging from the upper 20s to low 40s depending on location within the state. The varied weather patterns make for a pleasant change throughout the year but also mean that residents need both heating and cooling systems for their homes, leading to fluctuating utility bills based on seasonal needs.

If you’re considering relocating from Arizona to Tennessee or vice versa, understanding each state’s unique weather conditions will help you make an informed decision on which state best suits your lifestyle preferences. It’s essential to think about how the weather could influence your utility expenses and total cost of living when moving between these two states. To learn more about Tennessee’s climate, visit Weather-US.

FAQs in Relation to Cost of Living Arizona vs Tennessee

Is it Cheaper to Live in Arizona or Tennessee?

Tennessee is generally cheaper than Arizona when comparing the cost of living Arizona vs Tennessee. Factors such as lower property taxes, affordable housing options, and a more favorable tax environment contribute to this difference. However, individual preferences and lifestyle choices may impact overall costs.

Is Arizona a High Cost of Living State?

Arizona’s cost of living is slightly above the national average but not considered extremely high compared to other states. The main factors contributing to its higher costs are housing prices and transportation expenses. You can compare specific cities using BestPlaces.

Does Tennessee Have a High Cost of Living?

No, Tennessee has a relatively low cost of living compared to the national average due primarily to affordable housing options and lower utility bills. However, some areas like Nashville might be more expensive than others within the state.

What is the Cost of Living in Phoenix vs Memphis?

The overall cost of living comparison in Memphis is significantly lower than that in Phoenix mainly because of differences in housing prices and local taxes. Additionally, utilities tend to be less expensive in Memphis compared with Phoenix.


After assessing the cost of living Arizona vs Tennessee, it is evident that there are considerable disparities to contemplate when selecting a place to live. While both states have their advantages and disadvantages, it ultimately comes down to personal preferences and priorities.

Factors such as income levels, tax rates, utility bills, grocery prices, housing costs, insurance premiums, and relocation expenses all play a crucial role in determining the overall cost of living in these two states.

Before making your decision, it is important to consider all factors that affect the cost of living in both states. For homeowners looking to move to Tennessee, The Tennessee Life can provide more information on life in Tennessee and help with relocating.