According to Bloomberg, Arizona taxes are much lower than California taxes.

So, in addition to getting a ton more house for your money in Arizona, if you move to Arizona, you’ll save a ton on taxes each and every year you live here.

California Income Taxes are Twice as Much as Arizona Income Taxes

Arizona California
    Income Tax 4.54% 9.30%
    State Sales Tax 6.60% 7.25%
    Property Tax Per Capita $1,043% $1,449

It’s a quality of life issue.

Given your income and net worth, you have to determine if your personal quality of life would be higher living in Arizona or higher living in California.

For information on living the Arizona lifestyle and the terrific home prices in Arizona, please call me, John Wake of HomeSmart, at (480) 600-0947.

I think you might find that you can afford your dream home when you move to Arizona.


Arizona Taxes vs. California Taxes

From Bloomberg.


Income tax: 4.54%
State sales tax: 6.6%
Property tax per capita: $1,043
Inheritance tax: None
Estate tax: None

The tax burden in Arizona is small compared with that of other states because of its lower-than-average property taxes, so the decline in home prices has hit Arizona’s municipalities harder than those in many other states. A bid to close state and local budget gaps by forcing Amazon and other retailers to collect sales tax ended in the state Senate after lawmakers worried that the online retailer would respond by pulling its distribution center from the state. Arizona ranks second in combined state and local sales taxes, at 9.12 percent.


Income tax: 9.3%
State sales tax: 7.25%* (6.25%, plus 1% statewide local rate)
Property tax per capita: $1,449
Inheritance tax: None
Estate tax: None

Though California’s sales tax declined by a percentage point on July 1, 2011, it remains among the country’s highest. Gas taxes are the second-highest in the nation. Delinquent taxpayers beware: California collected more than $100 million by posting on its website the names of the largest tax debtors. The largest single income debt of $14.2 million is owed by CNet founder Halsey Minor; a debt of $607,860 is listed for actress Pamela Anderson.

ADDED: An alert reader emailed to remind me that California just increased their top income tax rate to 13.30% so I wrote a post “How to Avoid California Income Tax Increases”.