CALCMONEY // FIRE // AZ
FIRE number in Arizona: $2,037,150 (25x median income). Cost of living index: 110/100. State income tax: 2.5% flat.
Calculate Your FIRE Date$2,037,150
110/100
$81,486
2.5% flat
| Savings Rate | Annual Savings | Annual Spend | Years to FIRE |
|---|---|---|---|
| 20% | $16,297 | $65,189 | 32 yrs |
| 30% | $24,446 | $57,040 | 27 yrs |
| 40% | $32,594 | $48,892 | 24 yrs |
| 50% | $40,743 | $40,743 | 22 yrs |
| 60% | $48,892 | $32,594 | 20 yrs |
| 70% | $57,040 | $24,446 | 18 yrs |
Arizona has a cost of living index of 110 relative to the US average of 100. This is above the national average. A FIRE portfolio in Arizona needs to stretch further. Many FIRE practitioners in AZ plan for a higher withdrawal need or consider relocating to lower-cost states.
The 4% safe withdrawal rule suggests a FIRE number of 25x annual expenses. At Arizona's median income of $81,486, that is $2,037,150. However, if you plan to spend more (or less) than median income in retirement, scale the number accordingly.
Arizona taxes income at 2.5% flat. In FIRE, your primary income comes from portfolio withdrawals, dividends, and capital gains. Long-term capital gains in AZ are taxed at the same rate as ordinary income, including IRA withdrawals. Factor this into your withdrawal rate planning.