Cost of Living in Tucson: A Comprehensive Breakdown

While Tucson often takes a backseat to Arizona's flagship city, Phoenix—and even, in many instances, the state's flashiest suburb, Scottsdale—such status often works in Tucson's favor. A town with a diverse collection of neighborhoods where you can own a sprawling luxury estate tucked into the Catalina Foothills, enjoy desert sunsets from your rooftop terrace, and still pay less than you would for a modest high-rise condo in Phoenix. But while the price disparity for high-end homes isn't that great between the state's two largest cities—enclaves like Scottsdale, of course, is another story—it does beg the question of what the real value of seeking out a luxury home in Tucson, and what is the cost to live well in this southwestern gem in 2025?

From housing and healthcare to high-end amenities, here's a clear-eyed look at the real cost of living in Tucson for those considering a refined desert lifestyle.

Let's start where most buyers do—with real estate. In Tucson, housing remains refreshingly reasonable, even in 2025. While median home values sit around $390,000, luxury properties in sought-after neighborhoods like Tanque Verde, Oro Valley, and the Catalina Foothills trend well above $500,000.

What makes Tucson particularly appealing is that these upper-tier homes often come with acreage, views, or custom architecture—something that would cost far more in Phoenix or Scottsdale. In fact, according to recent estimates, housing in Tucson costs approximately 5% less than the national average and noticeably less than other Arizona metropolitan areas.

For renters, the numbers are similarly favorable. A high-end condo or home lease typically ranges from $2,000 to $3,500 per month, depending on the size and location. More modest rentals average closer to $1,250.

Arizona doesn't impose a state tax on Social Security benefits, and income tax is a flat 2.5%. That's good news for high earners and retirees alike. And when it comes to property taxes, Pima County—which includes Tucson—stays competitive, albeit higher than those in Maricopa County (home to Phoenix and Scottsdale). The effective property tax rate hovers around 0.84%, which translates to approximately $4,200 annually on a $500,000 home.

Desert living means sunshine, but it also means air conditioning—and energy bills tend to reflect that. Monthly utility costs for a typical home are around $200 to $210; however, for larger estates or homes with extensive landscaping or pools, the costs can be considerably higher.

Grocery prices are slightly above the national average—by about 6%—and that margin widens for organic, specialty, or imported items. Still, Tucson's cost of living in this category is manageable. You're not paying New York or San Francisco prices for a gallon of milk or a dozen eggs, but you might spend a little more than you would in smaller Texas or Midwest towns.

Dining out ranges widely. Tucson boasts a vibrant culinary scene that seamlessly blends traditional Sonoran cuisine with upscale, modern fare. It's easy to find a casual but high-quality meal for under $20 or a chef-driven tasting menu for much more. Those looking to entertain, host, or indulge regularly will find numerous options throughout the city and its foothills.

Tucson is a driving town. While there is a small but growing public transit system—particularly the popular but fairly limited Sun Link Streetcar downtown—most luxury homebuyers rely on private vehicles. According to AAA fuel price tracking, gas prices for Tucson at the midway point of 2025 are hovering at $3 per gallon for regular unleaded—approximately 35 cents less than Phoenix, nearly 50 cents less than Scottsdale, and 22 cents below the state average.

Residents who commute regularly to Phoenix (approximately a 90-minute drive) or travel frequently should factor in the time and costs associated with transportation. However, Tucson International Airport is convenient for both domestic and international flights.

Here's where the numbers are more surprising. Tucson's healthcare costs are significantly higher than the national average, by some estimates, as much as 250–330%. For many, especially those with private insurance or concierge care, that's the trade-off for access to respected facilities like Banner–University Medical Center, numerous specialty clinics, and a growing reputation as the City of Wellness.

Routine visits average around $130–135, and prescription costs are on the high end, often exceeding $400 monthly for those with recurring medications. While the care is reputable, the price for healthcare in Tucson is notably more expensive than you might expect in a city of its size. For retirees, individuals with chronic conditions, or families with frequent medical needs, this line item requires serious attention.

Living well in Tucson can be wonderfully fulfilling—and refreshingly varied. Fitness and wellness take center stage here. Country clubs like Skyline Country Club and Tucson Country Club offer full-service memberships with golf, tennis, dining, and social events. Initiation fees start around $25,000, and annual dues range from $10,000 to $25,000, increasing with more exclusive or private club tiers.

Private fitness studios and boutique wellness centers offer a range of services, from reformer Pilates to infrared sauna sessions. Expect to pay anywhere from $150 to $400 per month for premium services or memberships.

For families, private schooling can range from $10,000 to over $25,000 annually, depending on the institution. Tucson has several respected options for K–12 private education, including The Gregory School and Casas Christian School, among others. Equestrian communities are also prominent in the foothills and eastern edges of town, and caring for horses—boarding, training, veterinary care—can easily run into five figures annually.

Home services, such as housekeeping, landscaping, and pool maintenance, are widely available and reasonably priced by national standards. However, those with larger properties or bespoke homes can expect to budget $1,000 to $2,500 monthly to keep everything running smoothly.

It's natural to compare Tucson with its metro neighbors 90 minutes to the north. Scottsdale remains Arizona's undisputed luxury capital, with a median home price often exceeding $700,000 and a far more curated lifestyle, but also a significantly higher cost of living. Phoenix, while more diverse in housing and lifestyle offerings, still trends higher in both real estate and overall expenses.

Tucson, by contrast, offers something a little quieter, a little more laid-back, and significantly more affordable. Its overall cost of living sits about 3% below the Arizona average and roughly 15% above the national average, much of which is attributable to healthcare. It's a middle ground—one that makes sense for those who value space, privacy, and proximity to nature without straying too far from city conveniences.

Tucson offers an appealing value proposition for those considering a luxury relocation in 2025. Housing remains accessible, property taxes are low, and everyday living costs—although slightly elevated in some categories—are offset by the space, views, and overall quality of life that Tucson offers.

Yes, healthcare costs are high, and certainly, you'll need a reliable vehicle. However, for buyers who appreciate the region's distinct desert beauty, rich cultural scene, and low-stress lifestyle, Tucson stands tall with an unparalleled combination of sensible, uncompromising luxury and extraordinary livability.

Interested in discovering even more of Tucson's Sonoran Desert Lifestyle? Contact The Adler Group today to start your home-buying or selling journey. Let our team's years of experience and expertise guide you through Tucson's luxury real estate market.