The Popular Desert State Where You Need At Least $1 Million To Retire

The idea behind retirement is to set aside a certain sum for later years. This sum might vary depending on whether you retire early or not and even what state you retire in. For instance, there are cheaper states to retire in than others, and then there is Arizona. Popular among retirees because of its sunny climate, and outdoor lifestyle, a retiree should expect to save between $1.05 million and $1.26 million in order to afford a 25 to 30 year retirement, according to GoBankingRates. 

Arizona's cost of living is 18% above the national average, according to RentCafe. This means that, according to GoBankingRates' calculations, retirees should anticipate $63,600 worth of annual expenses while living in the state. With that said, Arizona does offer tax friendly policies like the no state tax on Social Security. It also provides plenty of lifestyle perks, like sunny skies, hiking trails, and a diverse range of cultural activities. However, it's clear that you'll need to accept that Arizona's lifestyle comes with a price. A solid seven-figure savings goal is a must if you want to live comfortably in the Grand Canyon State. 

Housing, healthcare, and inflation are the key factors that can eat into the funds of retirees living in Arizona. Per Ownwell, the median property tax rate in Arizona, as of March 2025, is about 0.56% — well below the national median of 1.02%. However, if you own a home in Phoenix, you'll only pay a 0.53% property tax rate. According to Zillow, the median home sale price in Arizona was $426,333, as of March 2025. Meanwhile, the Federal Reserve Bank of St. Louis lists the U.S. median sale price at $416,900 in Q1 2025, making Arizona homes about $9,433 more expensive than the national median.

According to the U.S. Census Bureau, 2023 American Community Survey, 19.35% of people in Arizona are 65 and above. This retiree population drives demand for things like doctors, prescriptions, and long‑term‑care services, which can increase healthcare prices, per National Institute for Healthcare Management Foundation. GoBankingRates estimates that retirees pay $7,178 per year on healthcare in Arizona. 

Also, a January 2025 report from the Tax Foundation on combined state and local sales taxes found that Arizona levies a 5.6% state sales‑tax base, with average additional local tax rates of 2.814% bringing the average combined sales tax rate to about 8.4% for consumers.

Plan, think ahead, and set a budget if you want to live in Arizona — even if you do have a million dollars in your nest egg. For those looking to buy, Tucson could be a more affordable option, with median home sale prices of around $325,000, as of April 2025, according to Redfin. Similarly, Yuma had a median home sale price of about $328,000 in the same month, per Rocket. These are lower than what is obtainable in Phoenix, where the median sale price in March 2025 was $427,833, per Zillow, or Scottsdale's median sale price in April of $863,040, according to Redfin.

According to Genworth's 2024 Cost of Care Survey, the median annual nursing home cost in Arizona in 2024 was $91,250 per year ($7,604 per month) for a semi-private room and $125,925 per year ($10,494 per month) for a private room. If assisted living is your priority, look for Arizona cities that host a dense network of private facilities like Tucson, Scottsdale, and Green Valley. The 2025 U.S. News & World Report senior‑living directory lists 47 licensed assisted‑living communities in and around Tucson specifically, with 28 located inside city limits. Meanwhile, A  Place  for  Mom's 2025 guide tallies 11 assisted‑living communities in Green Valley. Similarly, depending on your priorities, you might consider the U.S. states with the cheapest assisted living costs for seniors.