State Comparison

California vs Arizona

Side-by-side comparison of 16 financial metrics including taxes, housing costs, cost of living, wages, and insurance — powered by verified government data.

Overall Score

5
California
CA
vs
of 16 metrics
11
Arizona
AZ

Cost of Living

Cost of Living Index
CA: 142.2
AZ: 102.2
AZ

Housing

Median Home Price
CA: $785,000
AZ: $380,000
AZ
Median 2BR Rent
CA: $2,150/mo
AZ: $1,307/mo
AZ
Closing Costs
CA: 2.00%
AZ: 2.30%
CA
Transfer Tax Rate
CA: 0.11%
AZ: 0.00%
AZ

Taxes

Property Tax Rate
CA: 0.76%
AZ: 0.62%
AZ
Top Income Tax Rate
CA: 13.30%
AZ: 2.50%
AZ
Sales Tax Rate
CA: 7.25%
AZ: 5.60%
AZ
Capital Gains Tax Rate
CA: 13.30%
AZ: 2.50%
AZ

Income & Employment

Median Household Income
CA: $91,905
AZ: $72,581
CA
Minimum Wage
CA: $16.50/hr
AZ: $14.70/hr
CA
Max Unemployment Benefit
CA: $450/wk
AZ: $320/wk
CA

Business

LLC Filing Fee
CA: $70
AZ: $50
AZ
LLC Annual Fee
CA: $800
AZ: $0
AZ

Insurance & Living

Avg Car Insurance
CA: $2,290/yr
AZ: $2,120/yr
AZ
Avg Home Insurance
CA: $1,950/yr
AZ: $2,080/yr
CA

Key Takeaways

  • 1

    Arizona leads in 11 of 16 financial metrics, making it the more favorable state overall.

  • 2

    Housing: Median home prices are $785,000 in California vs $380,000 in Arizona — a $405,000 difference.

  • 3

    Taxes: California has a 13.3% top income tax rate while Arizona has a 2.5% top rate. Property tax rates are 0.76% vs 0.62%.

  • 4

    Cost of Living: California's index is 142.2 and Arizona's is 102.2 (national average = 100).

Frequently Asked Questions

Is California or Arizona more affordable?

Arizona has a lower cost of living index (102.2) compared to California (142.2), where 100 is the national average. However, affordability depends on your specific situation — compare housing, taxes, and income together for a complete picture.

Which state has lower taxes — California or Arizona?

Overall, Arizona has a lower combined tax burden. California has a 13.3% top income tax, 7.25% sales tax, and 0.76% property tax. Arizona has a 2.5% top income tax, 5.6% sales tax, and 0.62% property tax.

What are housing costs in California vs Arizona?

The median home price in California is $785,000 compared to $380,000 in Arizona. For renters, a 2-bedroom apartment averages $2,150/month in California vs $1,307/month in Arizona.

Which state is better for starting a business — California or Arizona?

LLC filing costs are $70 in California vs $50 in Arizona, with annual fees of $800 and $0 respectively. California's 13.3% top tax rate compared to Arizona's 2.5% rate may also factor into your decision.

Should I move from California to Arizona?

It depends on your priorities. Arizona wins in 11 of 16 metrics we compared. Use our free calculators to model your specific financial scenario — including salary, property tax, and cost of living for each state.

Comparing California and Arizona

When deciding between living in California or Arizona, the financial picture goes beyond just one metric. This comparison analyzes 16 key financial indicators sourced from the U.S. Census Bureau, Tax Foundation, HUD Fair Market Rent data, and Bureau of Labor Statistics to give you a comprehensive overview.

California (CA) has a median household income of $91,905 with a cost of living index of 142.2. Arizona (AZ) has a median household income of $72,581 with a cost of living index of 102.2.

These numbers are estimates. Individual circumstances vary based on location within each state, family size, profession, and lifestyle. Use our free California calculator or Arizona calculator to model your specific financial scenario.

Data sources: Census Bureau ACS, Tax Foundation, HUD FMR, BLS. Last verified January 2026. Calculators provide estimates only — consult a qualified professional for financial advice.