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City Comparison · 2026

Houston vs Phoenix

Salary, rent, taxes, and purchasing power compared

Purchasing Power

$100k in Houston = $104k in Phoenix

Metric
Houston
Phoenix
COL Index
1.08
1.12
1BR Monthly Rent
$1,400/mo
$1,450/mo
2BR Monthly Rent
$1,780/mo
$1,820/mo
State Income Tax
TX
AZ
$100k Take-Home
$78,736
$76,236
$100k Effective Rate
21.26%
23.76%
$100k Savings Potential
$61,936
$58,836

After-Tax Income by Salary

Gross SalaryHouston
TX
Phoenix
AZ
$60,000$50,248
$4,187/mo · 16.25% eff.
$48,748
$4,062/mo · 18.75% eff.
$100,000$78,736
$6,561/mo · 21.26% eff.
$76,236
$6,353/mo · 23.76% eff.
$150,000$113,278
$9,440/mo · 24.48% eff.
$109,528
$9,127/mo · 26.98% eff.

Frequently Asked Questions

Is Houston or Phoenix cheaper to live in?

Houston has a cost-of-living index of 1.08 while Phoenix is 1.12 (1.00 = US average). Houston is cheaper overall. 1BR rent in Houston is $1,400/month vs $1,450/month in Phoenix.

How much more do you need to earn in Phoenix vs Houston?

$100k in Houston = $104k in Phoenix. Cost of living in Phoenix is higher by 3.7%.

Which city has better after-tax income — Houston or Phoenix?

On a $100,000 salary, you take home $78,736 in TX (Houston) and $76,236 in AZ (Phoenix). After accounting for rent, your annual savings potential is $61,936 in Houston vs $58,836 in Phoenix.