Phoenix Quick Reference
Total monthly budget estimates for a single Phoenix 55+ retiree: RCSC Sun City tier (modest lifestyle): $2,800–$3,500/month — covers housing, utilities, food, transportation, healthcare, and modest recreation. Mid-range gated (Sun City Grand/Trilogy): $3,500–$4,500/month. Premium gated (PebbleCreek/Encanterra): $4,500–$6,000/month. Golf memberships, travel, and entertainment add $500–$1,500/month on top for active retirees.
Utilities in Phoenix require a budget category that Northern retirees consistently underestimate: summer electric bills. Phoenix summer cooling runs $180–$350/month for June–September for a typical 1,500–2,000 sq ft home with a modern HVAC system (higher for older or less efficient homes). The RCSC Sun City communities have older homes that may run higher. Annual average utilities including high summer and low winter months: $150–$250/month year-round average.
The Financial Picture
Arizona state income tax: 2.5% flat. Social Security: not taxed. Retirement income (pensions, IRA distributions, 401k withdrawals): taxed at 2.5% flat. Arizona has no estate tax and no inheritance tax. Sales tax in the Phoenix metro: 8.1–9.1% depending on municipality (Scottsdale: 8.05%, Sun City: 8.3%, Surprise: 8.6%). Sales tax is higher than Florida's 6–7% but income tax savings offset this for most retirees.
Arizona property taxes on a $300,000 Sun City home: approximately $2,400–$3,200/year after homestead exemptions. On a $500,000 PebbleCreek home: $4,000–$5,500/year. Arizona has a property value protection for primary residents that limits assessment increases to 5% per year for owner-occupied homes.
Real Estate & Timing
Monthly housing cost by tier — RCSC Sun City tier (own $250K home): $0 mortgage if paid cash, RCSC fee $54/month, property tax ~$240/month = ~$294/month in fixed housing costs. Mid-range gated (Sun City Grand, $400K home): HOA $195/month, property tax ~$375/month = ~$570/month. Premium gated (PebbleCreek, $550K home): HOA $140/month, property tax ~$475/month = ~$615/month.
Healthcare is the largest variable in Phoenix retirement budgets. Medicare Advantage plans with Phoenix network coverage run $0–$80/month in premiums. Traditional Medicare Part B: $185/month (2026). Medigap supplement: $150–$250/month depending on plan and age. Total healthcare insurance for a couple: $400–$900/month depending on coverage level.