Is Your Salary Enough for Phoenix?
Is $65,000 a good salary in Phoenix? The median household income here is roughly $65,000. Adjusted for Phoenix's Cost of Living Index (~123), your $65,000 has the purchasing power of $52,846 in a standard US city. This places you squarely in the Phoenix middle class income bracket.
Housing Affordability
Housing is the biggest expense. Financial experts recommend spending max 30% of net pay on rent. With a typical take-home pay, you can comfortably afford $1,219/mo. The average rent in Phoenix is roughly $2,150, so you may need to adjust expectations.
Hourly Rate & Checks
Many Phoenix residents prefer to think in hourly terms. A $65,000 salary breaks down to $31.25/hr (based on 2,080 hours) or roughly $2,500/check bi-weekly in Arizona.
The Real Tax Bite
Where does the money go? In Arizona, you will pay roughly $1,625 in state income taxes on a $65,000 salary. Combined with Federal and FICA, you keep approximately 78% of your gross pay.
Arizona vs. Tax-Free States
How does this compare? Earning $65,000 in Phoenix is equivalent to earning roughly $63,375 in a tax-free state like Florida, due to Arizona's Flat tax structure.