Is $40K a Good Salary in Tempe, AZ?
Full budget breakdown for Tempe on $40K/year — take-home after taxes, rent burden, what you can afford, and how it compares to the city median.
Monthly budget in Tempe on $40K
US average equivalent
$39,000
Your $40K in Tempe (COL: 103) buys the same as $39,000/yr in a city with average US cost of living.
vs Tempe median
-41%
The median household income in Tempe is $68,000/yr. You're earning 41% below that.
Cities where $40K goes further
These cities have a lower rent burden at $40K than Tempe.
Other salary levels in Tempe
Frequently asked questions
Is $40K a good salary in Tempe?
$40K/year in Tempe gives you approximately $2,645/month in take-home pay after federal and state taxes. With a median 1BR rent of $1,600/month, your rent burden is 60% of take-home — which is considered difficult. Tempe ranks #119 out of 179 cities for this salary level.
How much is $40K after taxes in Tempe?
On $40K/year in Tempe (AZ), you take home approximately $2,645/month after federal income tax, 2.5% AZ state income tax, and FICA. That is roughly $31,740/year net.
What is the cost of living in Tempe on $40K?
Monthly estimated costs in Tempe: rent $1,600, groceries ~$380, transportation ~$55, utilities ~$210, internet ~$62. Total estimated expenses: ~$2,307/month, leaving ~$338/month after essentials on a $40K salary.
Tax estimates use 2026 brackets · Rent data: Zillow Observed Rent Index · Budget figures are estimates for general guidance only