Are you searching for a warm destination to unwind?
I recommend Florida and Arizona because of their gorgeous scenery and warm weather.
Each of these places offers you an affordable cost of living.
However, is it cheaper to live in Florida or Arizona?
No, Florida is more expensive than Arizona.
I have lived in both cities, and their cost of living is similar.
Arizona has a landlocked desert, while Florida has a tropical peninsula, influencing tourism.
The choice of where to live depends on what you want to do in any of these states.
While one might offer you something better, the other may give you less in another aspect of living.
I compare the cost of living in both cities before I make up my mind on what to do or where to spend my vacation.
Is Florida or Arizona hotter?
No, Arizona is considered the hottest state in the U.S., unlike Florida.
Before you come to Arizona, you need to read the state’s handbook to learn what to wear in each city.
Florida is more affordable compared to Arizona in many aspects.
Despite being one of the most popular vacations and retirement destinations in the U.S., Florida can be affordable.
The average cost of living in Florida is not even 1% higher than the national average, according to a Cost of Living Index.
Is it cheaper to live in Florida or Arizona?
Arizona is cheaper than Florida.
However, Florida is still affordable compared to states like California.
Surprisingly, Arizona and Florida share some similarities and differences.
The differences give you an idea of what to expect in each state.
Here is what you should know about the cost of living in both states:
Taxes
We know that taxes are a necessary evil that cannot be avoided.
With taxation, the government can fund infrastructure and the military.
However, it is never exciting to pay taxes in the United States.
- Gas Tax: In Florida, you can pay as much as 43.5 cents in tax for every gallon of gasoline you buy.
On the other hand, you can pay at least 36.37 cents in tax for every gallon of diesel.
Meanwhile, you can pay only 19 cents per gallon of gas in Arizona.
If you have a light vehicle, the amount you pay for a gallon in tax for diesel is 19 cents.
Commercial trucks can pay as much as 27 cents per gallon of diesel.
- Sales Tax: People in Florida have to pay about 7.01% for effective sales tax and the state collects 6%.
In addition, localities may add up to 2% to that number.
On the other hand, you can pay 5,6 % in Arizona for the state sales tax, but local taxes takes the state’s average to about 8.4%.
- Property Tax: property owners pay property tax rate at about $617 per $100,000 of home value.
However, the rate is lower than what you can pay in Florida.
- Income Tax: You don’t have to pay state income tax in Florida because it does not have such tax.
However, Arizona is collecting a 2.5% flat income tax, which is not bad, but higher than a zero tax rate.
Tax Winner:
Florida is my winner with its nonexistent income tax and lower effective sales tax.
The two taxes influence the cost of living and leave Arizona as an expensive taxpaying state.
Housing
I used the U.S Census Bureau to obtain reliable data for both states.
While major real estate websites could give me data, but that would not be clear.
Real estate websites offer data about selling homes, which depends on the market situation.
On the other hand, the census data is reliable and thorough.
How are the housing prices in any of these states?
I know some places in both states experience unusual market situations that may influence the costs of things.
Further, the choice home and city can affect your housing plan.
The median value of owner-occupied homes in Florida is $215,300, while Arizona data shows a median home value of at least $225,500.
The median ownership in Arizona can come to around $1,434 a month, which is less than Florida’s $1,503.
What about paying rent?
Arizona has a cheaper rent and housing rate than Florida.
Commuting
Commuting makes a difference because time is of the essence.
You can spend an average of 25.7 minutes commuting to your workplace, while Floridians take an average of 27.8 minutes commuting to their workplaces.
How about tolls?
Many first-time visitors are surprised that Florida has a lot of toll roads.
Therefore, you have to make payments in many tolls around the state.
Car insurance is more expensive in Florida than in Florida.
For instance, you can pay as much as $194 monthly for your car insurance, but Arizonans pay about $129 monthly.
Furthermore, you have to make payments for your mechanical and maintenance costs.
People who stay at least a year in Florida can pay about $6,765.22 yearly if they must operate their vehicles.
Arizona pays less but on the same level, and I crown Arizona as the winner.
Retirement
Since Florida lacks an income tax, it has become appealing to most people, especially seniors.
The two states have affordable and great packages for retirement.
Retirees and seniors don’t have to worry about the cost of living in both cities.
Florida has different retirees of all ages and communities.
Another concern for retirees is a crime.
While crime is not directly related to the cost of living, it’s an important factor.
For example, Florida has less crime than Arizona.
FAQs
Is the real estate cheaper in Arizona or Florida?
Yes, Arizona has cheaper real estate than Florida.
Florida has the median sale price of all homes at $247, 600, which is about $18,000 better than Arizona’s median price of $265,800.
Is it cheaper to retire in Florida or Arizona?
Yes, Florida is cheaper to retire in the United States than Florida levies no income tax, making it the clear winner over Arizona.
In addition, the income tax rate in Florida runs between 2.59% and 4.50%.
Are houses cheaper in Florida or Arizona?
Yes, Florida has cheaper housing taxation, which makes it easier to fall in love when you are with it.
