Your monthly budget in Phoenix.

Phoenix had 1,673,122 residents in 2024, a median household income of $85,246 and a median gross rent of $1,712 a month, according to the Census Bureau’s 2024 American Community Survey. It is the fifth-largest city in the country and a government town as much as a desert one: the state capitol, city hall, Maricopa County and a dense ring of school districts all sit within a short drive. The largest private employer in Arizona is Banner Health, with 46,731 employees in the state, according to AZ Big Media’s 2025 ranking.

Two things set the rhythm of a Phoenix budget that most guides miss. The first is that public-sector and hospital paychecks are steady, but the cost of cooling a home is not: from May to October the power bill climbs, sometimes to two or three times the spring amount. The second is that local taxes changed twice in 2025, in opposite directions.

This page is for the state agency clerk, the Phoenix city worker, the teacher and the Banner nurse who earn a predictable check and still see summer drain the account. By the end you will know your yearly cooling cost, how the 2025 tax changes affect you, and what your real free money is in a July and in a February.

A steady paycheck and a seasonal bill

The trap is not overspending. It is budgeting each month on that month’s bill. In March, the plan looks generous. In August, the same plan breaks. The fix is to know your annual electricity cost and spread it evenly, then let the cool months build a buffer that the hot months spend.

Salt River Project, which serves much of the city, lowered prices by about 3% from the May to October 2026 billing cycles through a fuel adjustment, saving the average residential customer about $5.57 a month, according to SRP. That helps a little. It does not change the shape of the year.

Two tax changes from 2025

On January 1, 2025, Arizona cities lost the right to charge residential rental tax. Phoenix’s rate had been 2.3%, 12News reported, which on a $1,500 rent was about $35 a month. If your landlord passed that tax on, your rent line should be lower now.

To replace part of the lost revenue, the Phoenix City Council raised the city sales tax from 2.3% to 2.8% on July 1, 2025, according to AZFamily, with groceries excluded. So renters saved on rent and pay a bit more on everything else. Arizona’s personal income tax is a flat 2.5%, so the state line on your stub is smaller than in most states.

When the peak hours are

Most Phoenix households are on SRP or APS, and both rely on time-of-use plans. On SRP’s Average Demand plan, on-peak hours are weekdays from 2 to 8 p.m., the hottest part of the day. Pre-cooling in the morning and running laundry and dishwashers at night are the habits that move a summer bill. A budget is how you see whether they worked: compare this July with last July, not with March.

The bills that repeat every month

• Rent or mortgage, plus renters or homeowners insurance.
• Electricity at your yearly average, plus water and gas.
• A car payment, insurance and gas, since Valley Metro covers only part of the metro.
• Phone and internet.
• Childcare or summer camp, which arrives at the same time as the high power bill.
• Pension contributions and health premiums show on the stub; debts such as student loans and cards go in the plan.

Example one: a state employee renting in Maryvale

The figures in both examples are illustrative. Daniel is an eligibility specialist at a state agency. His net monthly deposit is $3,350.

His last twelve power bills add up to $2,280, from $95 in February to $390 in August. Average: $190.

Fixed costs: rent for a two-bedroom $1,480, renters insurance $16, electricity at the average $190, water and trash $60, car payment and insurance $410, gas $140, phone and internet $120, student loan $175. Total: $2,591. Weekend reserve: $180.

$3,350 minus $2,591 minus $180 leaves $579 of real free money, every month of the year.

In February, when the real bill is $95, Daniel moves the $95 difference to a savings goal called Summer power. By June the goal holds about $430. In August, the $200 above the average comes out of the goal, and his free money stays at $579.

Enter twelve months of power bills and see your real summer budget before July arrives →

Example two: a nurse and a city worker with a house in Ahwatukee

Alicia is a nurse at a Banner hospital and takes home $5,900 a month, plus occasional extra shifts. Mark works for the City of Phoenix in water services and takes home $4,100.

Planned income, counting only base pay: $10,000.

Fixed costs: mortgage with taxes and insurance $2,850, electricity at their annual average $280, water and gas $110, two cars with insurance $980, gas $260, phone and internet $170, summer camp for two kids averaged over twelve months $250, credit card payment $300. Total: $5,200. Weekend reserve: $450.

$10,000 minus $5,200 minus $450 leaves $4,350.

Alicia logs extra shifts as variable income when the deposit arrives. Their rule is set in advance: extra-shift pay goes first to topping up the Summer power goal if it is behind, then to the credit card. The household plan never depends on Alicia picking up a shift in July.

Manual entry, by design

Monthly is a free budgeting app for the web and Android that you fill in by hand. It does not connect to bank accounts, move money or give financial advice. You enter income, fixed costs, installments and debts, and the app shows what remains. Savings goals sit under Patrimonio with an amount, a date and your logged contributions. The guide to setting a savings goal you actually hit shows how to size one, and how Monthly works walks through the first setup.

Real free money and your next step

In Phoenix, the paycheck is often the steady part and the weather is not. Real free money is what remains after a twelve-month average of your utilities, every other fixed bill and a weekend reserve come out of the deposit you actually receive. Plan on that number, let the cool months fund the hot ones, and August stops being a crisis.

Set up your year in Monthly with an averaged power bill, and see what is free in July and in February →