Taxes in Arizona... Tax information for the retiree

You should know up front what the taxes in Arizona amount to... as well as any other state that you are contemplating retiring to.

Arizona is not among the fortunate seven states, that have no state personal income tax... Like most other states that charge the state personal income tax, it's based off your federal income tax return.

Overall,relatively low property taxes make retiring to Arizona relatively painless...especially when you factor in the sunshine. Make that 320 days per year, all included.

Arizona state sales tax

The state of Arizona currently charges state sales tax of 5.6%. Counties and cities add to that anywhere from 1% to some parts of the Phoenix area, where we live, the overall sales tax is very close to 10%.

There is no state sales tax on food bought in grocery stores... However most cities do charge a tax on food that runs about 2%...there is no city tax on food in Surprise, where we live, and in Mesa.

Arizona automobile registration tax

When you first move to Arizona, you may be surprised, when you register your automobile... that the state charges a one-time fee that is based upon the current value of the car. It is very similar to personal property tax charged by other states

Compared to other states the fees for emission checks, and auto registration, will probably be lower than what you're used is the link to Arizona DMV ...this also is your source for information on drivers license and such.

Yesterday I got an emissions check...$17 for 2 years...not too bad.

Arizona property taxes

Now for the good news, the property taxes in Arizona will most likely be lower than what you're used to... As an example, a home with an appraised (not assessed value) value of $350,000, in Maricopa County (Phoenix), is $2200 a year. That that is half of what a similar California home would be taxed at.

But if you would rather trade smog for more sunshine come on over...our housing is still relatively cheap since Arizona has no shortage of vacant land...something new home developers have noticed.

Would you like a new home?

Taxes in Arizona Conclusion

Taxes in Arizona, are not the highest and not the lowest... But when you factor in the fantastic weather and sunshine, it seems like a bargain.

At least your intrepid reporter thinks so...been here since 2004, no plans to leave.

Return from taxes in Arizona to the home page

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