Moving to a new state can be an exciting adventure, but it also requires careful financial planning. If you’re considering moving to Arizona, one of the first questions you might ask yourself is, “How much money should I have saved up?” The answer to that question will depend on a variety of factors, including your income, lifestyle, and personal goals. In this article, we’ll explore some of the key financial considerations you should keep in mind as you prepare to move to Arizona.
Cost of Living in Arizona
One of the most important factors to consider when moving to Arizona is the cost of living. While Arizona is generally considered to be an affordable state, the cost of living can vary widely depending on where you live and what your lifestyle is like. According to the Missouri Economic Research and Information Center, Arizona has a cost of living that’s roughly in line with the national average. However, some cities and regions within the state are more expensive than others.
For example, if you’re planning to move to the Phoenix metropolitan area, you can expect to pay more for housing and transportation than you would in other parts of the state. According to Numbeo, the average cost of rent in Phoenix is around $1,200 per month for a one-bedroom apartment in the city center. If you’re looking for a cheaper alternative, you might consider living in a suburb or a smaller city outside of Phoenix.
Other expenses to consider when moving to Arizona include utilities, groceries, and healthcare. Again, these costs can vary depending on where you live and what your lifestyle is like. According to Numbeo, the average cost of utilities in Arizona is around $150 per month, while the average cost of groceries for a single person is around $250 per month.
Income and Employment in Arizona
Another important factor to consider when moving to Arizona is your income and employment prospects. According to the U.S. Bureau of Labor Statistics, the median household income in Arizona was around $63,000 in 2020. This is slightly lower than the national median household income of around $68,000.
However, the cost of living in Arizona is also lower than in many other states, which means that your money can go further. Additionally, some industries and occupations in Arizona offer higher salaries than others. For example, healthcare and technology are both growing industries in Arizona, and they tend to offer higher-paying jobs.
If you’re planning to move to Arizona without a job lined up, it’s important to consider your employment prospects carefully. The job market can be competitive, particularly in certain industries and regions of the state. It’s a good idea to research potential job opportunities before you move, and to make connections with local employers and job search resources.
Taxes in Arizona
When planning your move to Arizona, it’s also important to consider the state’s tax structure. Arizona has a relatively simple tax system compared to some other states, with a flat income tax rate of 4.5% for all income levels. There is also a sales tax of around 5.6% statewide, although some cities and counties may charge additional sales taxes.
Property taxes in Arizona can also vary widely depending on where you live and what type of property you own. According to SmartAsset, the average property tax rate in Arizona is around 0.66% of a property’s assessed value. This means that if you own a home worth $200,000, you can expect to pay around $1,320 in property taxes per year.
Other Financial Considerations
Finally, there are a few other financial considerations to keep in mind as you prepare to move to Arizona. These might include:
Moving expenses: Depending on how much stuff you’re bringing with you and how far you’re moving, you may need to budget for moving expenses.