State comparison
Arizona vs Tennessee: which state is better to live in?
Tennessee costs a median household about $2,200 a year less in state and local taxes than Arizona, mostly because it has no income tax.
Arizona
Moderate tax burden · COL index 102
Wins 5 categories
Tennessee
Low tax burden · COL index 92
Wins 10 categories
Taxes: Arizona vs Tennessee
Arizona has a flat 2.5% income tax, which works out to 2.5% on a median income of $74,580, or $1,865 a year. Tennessee has no state income tax. Tennessee wins on income tax at 2026 rates.
Property tax is 0.51% of home value a year in Arizona and 0.45% in Tennessee (Tax Foundation, 2023); on each state's median home that is $2,142 against $1,575, so Tennessee has the lower rate.
Combined state and local sales tax averages 8.37% in Arizona and 9.55% in Tennessee; Arizona is lower.
Add it up for a household earning $74,580 (the 2022 national median) and owning the median home: $5,879 a year in Arizona, $3,712 in Tennessee. Tennessee is cheaper on total state and local tax.
Housing and cost of living
Arizona's cost of living index is 102 and Tennessee's is 92, where 100 is the national average; Tennessee is about 11% cheaper day to day.
The median home costs $420K in Arizona and $350K in Tennessee (Zillow, 2024), a $70K gap in Tennessee's favor. A two-bedroom rents for about $1,600 a month in Arizona and $1,400 in Tennessee.
Home insurance averages $1,850 a year in Arizona and $2,000 in Tennessee, so Arizona is cheaper to insure.
Safety
Violent crime runs 474 incidents per 100,000 residents in Arizona and 668 in Tennessee (FBI Crime Data Explorer, 2023); Arizona is the safer state by that measure, with a rate 41% lower. Property crime is 2,624 per 100,000 in Arizona against 2,752 in Tennessee, again favoring Arizona.
Health
Life expectancy is 76.3 years in Arizona and 74.2 in Tennessee (County Health Rankings, 2024), a 2.1-year edge for Arizona. The Commonwealth Fund's 2023 scorecard ranks Arizona's health system 34th of 50 and Tennessee's 39th, so Arizona scores better on care.
10.8% of Arizona residents have no health insurance against 10.4% in Tennessee, which favors Tennessee. Arizona expanded Medicaid and Tennessee did not.
Schools
Education Week's 2023 Quality Counts report ranks Arizona's K-12 schools 45th in the country and Tennessee's 41st, 4 places apart in Tennessee's favor. Both states run school-choice voucher programs.
Laws and politics
In the 2024 presidential election Arizona went to Trump by 5 points and Tennessee went to Trump by 24 points.
Arizona has permitless carry and a Giffords gun-law grade of F; Tennessee has permitless carry and a grade of F.
Abortion is banned with narrow exceptions in both states, and marijuana is legal for adults in Arizona and illegal in Tennessee as of 2026. The minimum wage is $14.35 an hour in Arizona and $7.25 in Tennessee.
Climate and risk
Natural disaster risk is moderate in Arizona (wildfire, extreme-heat, drought) and moderate in Tennessee (tornado, flood, ice-storm). Annual average air quality index is 46 in Arizona and 36 in Tennessee (under 50 is good), favoring Tennessee.
Tax figures use a household earning the national median income and owning each state's median home, at tax year 2026 rates, last checked against state sources on 2026-09-14. The table below has every number.
Taxes
Housing & Cost of Living
Crime & Safety
Healthcare
Education
Childcare
Utilities & Daily Costs
Social Policy
Category wins
5
Arizona
10
Tennessee
Run the full slider tool to score these states against your specific income, home value, retirement, and lifestyle priorities.
Score For My Profile →Questions people ask
Is Arizona or Tennessee better to live in?
Tennessee wins more of the measures that decide a move. Tennessee on taxes ($3,712 a year for a median household against $5,879); Tennessee on everyday costs (index 92 against 102); Arizona on safety (474 violent crimes per 100,000 against 668); Tennessee on schools (ranked 41st against 45th).
Which is cheaper, Arizona or Tennessee?
Tennessee is cheaper day to day: cost of living index 92 against 102. The median home is $420K in Arizona and $350K in Tennessee (2024). On state and local taxes Tennessee saves a median household about $2,200 a year.
Does Arizona or Tennessee have lower taxes?
Tennessee. A household earning $74,580 pays about $5,879 a year in Arizona ($1,865 income tax, $2,142 property tax on the median home and $1,873 in sales tax) and $3,712 in Tennessee ($0 income tax, $1,575 property tax on the median home and $2,137 in sales tax), at 2026 rates.
Which is safer, Arizona or Tennessee?
Arizona, on the FBI's 2023 figures. Violent crime is 474 per 100,000 residents in Arizona and 668 in Tennessee; property crime is 2,624 against 2,752.
Which has better schools, Arizona or Tennessee?
Tennessee. Education Week's 2023 Quality Counts report ranks Arizona 45th of 50 for K-12 and Tennessee 41st.
Is Arizona or Tennessee better for retirees?
Tennessee is friendlier to retirees on paper. Arizona does not tax Social Security, partly exempts pensions and has no estate or inheritance tax; Tennessee does not tax Social Security, exempts pensions and has no estate or inheritance tax. Property tax on a median home is $2,142 a year in Arizona and $1,575 in Tennessee.