Notice that property taxes are MUCH lower in Arizona than in Texas (very high), Florida (high) or California (high).
This is particularly important when you’re choosing where to retire when you’ll be on a fixed income.
But There’s More
In addition to high property taxes, be aware that California and Florida discriminate against new and vacation homeowners.
California Property Taxes: California property taxes are MUCH higher for new homeowners than for people who have owned their homes for awhile. Arizona doesn’t do that. You will pay pretty much the same in property taxes as your neighbors with homes of the same value. So not only do you get a LOT more home for your money in Arizona, you’ll pay a lot less every year in property taxes.
Florida Property Taxes: Like California, Florida has a two-tiered property tax system that hits newcomers and part-time residents harder than longer-term residents. In Arizona, we don’t do that. We treat part-time residents fairly so you will pay the same as your full-time resident neighbors with homes of the same value.
Texas Property Taxes: Crazy high!
Property Taxes Make a BIG Difference
Be sure to pencil in property taxes when estimating your cost of living in different retirement areas.
• Compare Arizona taxes and California taxes
• How high are Florida property taxes?
• Residential Real Estate Tax Rates
5 Responses to Arizona property taxes are much lower than in California, Florida or Texas
When it comes to taxes, you’ve also gotta look at the income tax differential as well. Texas, for example, has no state Income tax. Having just moved from AZ to TX (and having just finished my taxes), I can tell you it ends up being about a wash (for me anyway).
PJ G, Good point!
That’s why I was emphasizing “retired.” If you’re retired and without a lot of income, the scale probably favors Arizona because you would still have to pay the same high property taxes in Texas but in Arizona you would pay less income tax.
It’s just one consideration, of course, when choosing where to retire but it’s good to know about it up front so you don’t have an unpleasant surprise later.
Thanks for your comment!
Here’s an article suggested by a subscriber that makes it look like California taxes will continue to increase rapidly in the future, “California Faces Death by Pension,” http://spectator.org/articles/60778/california-faces-death-pension.
Florida has NO State Income tax and doesn’t tax social security.
I also like paying LESS as a FULL TIME resident in FL. than a part time resident. One main reason is that I am paying sales tax and other costs to the state throughout the year and deserve to pay a lower (homesteaded) property tax.
Also the weather in FL far exceeds AZ. !
wjd, different strokes for different folks.
I got a graduate degree from the University of Florida and for me, personally, I prefer the Arizona weather to the Florida weather, although I should mention that I was born and raised in Arizona so, naturally, I’m more accustom to the Arizona weather.
For me, the mosquitoes in Florida were terrible. In Arizona, you don’t have to have a giant dome of mosquito netting covering your pool to be able to enjoy your pool.
True, the heat in Arizona in the summer, especially August, is killer but everyone avoids it by staying in the air conditioning during the day (same as Florida) and going outside as the sun is setting and during the evening. Some tennis courts near my house are empty during the summer days but fill up during the evening. In Florida, the mosquitoes would drive me inside after dusk.
By the way, that’s why Arizona doesn’t go on Daylight Savings Time, we can’t wait for the sun to go down in the summer so we can get outside and be active.
And for me, I always missed the mountain views.
My wife loved Florida but she’s from Iowa. Coming from Arizona, Florida was very nice but not that special for me.
I would be very happy living in Florida but I prefer Arizona.
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