Arizonaflat 2.5% income tax, 8th lowest property tax, median home $420K

R+5 · Moderate tax burden · COL index 102

2.5%

Income Tax

474

Violent Crime / 100K

76.3

Life Expectancy

$420K

Median Home

$1,150

Childcare / Mo

Arizona in plain English

Worth knowing before you move to Arizona

Arizona moved to a flat 2.5% income tax in 2023, one of the lowest flat rates in the country. Phoenix summers run above 110°F for weeks, water rights and groundwater limits now shape where new housing can be built, and the state does not observe daylight saving time. Flagstaff and the high country are a different climate entirely.

What Arizona taxes, and what it doesn't

Arizona levies a flat 2.5% income tax. A household earning $75,000 pays an effective 2.5%, about $1,875 a year; at $150,000 the effective rate is 2.5%. Among the 41 states that tax income, Arizona has the 3rd lowest effective rate at $100,000 of income.

Property tax runs 0.51% of home value a year, roughly $2,142 on the state's median home of $420K. The national effective rate is about 1.10%, and Arizona has the 8th lowest rate of the 50 states.

Combined state and local sales tax averages 8.37%, the 11th highest in the country (the state portion is 5.6%).

For retirees: Social Security benefits are not taxed, pension income is partly exempt, and there is no estate or inheritance tax.

Capital gains are taxed as ordinary income.

Housing and the cost of living in Arizona

Arizona's cost of living index is 102, where 100 is the national average; that is the 20th most expensive of the 50 states.

The median home costs $420K, 38% above the national figure and the 15th highest among the states. A two-bedroom rents for about $1,600 a month.

Carrying costs matter as much as the price: home insurance averages $1,850 a year, flood coverage adds about $450 where it is needed, car insurance runs $1,890.

Budget $145 a month for electricity and gas, $490 a month in groceries for two, $1,150 a month for full-time infant care.

Safety, health and schools

Violent crime is 474 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, above the median state (387); Arizona is the 12th most violent of the 50 by that measure. Property crime is 2,624 per 100,000.

Life expectancy is 76.3 years (County Health Rankings 2024). 10.8% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks Arizona's health system 34th of 50.

Education Week's 2023 Quality Counts report ranks K-12 schools 45th in the country, and the state runs a school-choice voucher program.

Politics, guns and social policy

Politically, Arizona is a competitive state that went to Trump by 5 points in 2024.

On guns, no permit is required to carry a concealed handgun, and Giffords grades the state's gun laws F.

Abortion is banned with narrow exceptions. Marijuana is legal for adults. Arizona is a right-to-work state, and the minimum wage is $14.35 an hour.

Climate, risk and getting around

Natural disaster risk is moderate. The main hazards are wildfire, extreme-heat, drought. Annual average air quality index is 46 (under 50 is good).

Arizona has a major hub airport, with about 155 nonstop destinations from its busiest airport.

Written from the figures on this page. Rankings compare the 50 states. Sources and years are listed with each figure below.

Largest counties in Arizona

Maricopa County Pima County Pinal County Yavapai County Mohave County Yuma County Coconino County Cochise County Navajo County Apache County All Arizona counties →

Ranked lists

State Profile

49/100

Arizona will change its laws. We'll email you when it does.

One email when Arizona changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.

Taxes

Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026

▾

Income Tax

Flat 2.5% since 2023

2.5% flat

Property Tax

~$2,142/yr on median home

0.51% / yr

Sales Tax

8.37% avg

Social Security

Exempt

Pension / IRA

Partial

Estate Tax

None

Inheritance Tax

None

Capital Gains

Taxed as income

Housing & Cost of Living

Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)

▾

Price Level vs US (BEA)

Near US average (100)

100.7

Mortgages 90+ Days Late

FHFA, latest quarter

0.9%

Cost of Living Index

National avg = 100

102

Median Home Price

$420,000

Median Rent (2BR)

$1,600/mo

Home Insurance

Near national avg (~$1,900/yr)

$1,850/yr

Flood Insurance

$450/yr

Homestead Exemption

Home equity protected from creditors

$250,000

Asset Protection

Moderate

Homes in HOAs

HOAs dominate the housing stock (Census ACS 2024)

45.0%

Zoning Restrictiveness

More restrictive than most states (Wharton WRLURI 2018)

Restrictive

Short-Term Rentals (Airbnb)

State preemption bars local governments from prohibiting STRs by type or location.

State-Protected

Crime & Safety

Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024

▾

Violent Crime Rate

Near national avg

474 / 100K

Property Crime Rate

Near national avg

2,624 / 100K

Traffic Fatality Rate

13.4 / 100K

Registered Sex Offenders

Among the lowest registry rates (SafeHome 2025)

144 / 100K

Homeless Population

Moderate homelessness rate — 50% unsheltered (HUD 2024 PIT)

194 / 100K

Healthcare

Sources: Commonwealth Fund 2023 · KFF · CDC

▾

State Healthcare Rank

#34 of 50

Life Expectancy

76.3 yrs

Medicaid Expansion

Expanded

Uninsured Rate

10.8%

Education

Sources: Education Week 2023 · NCES · state statutes (school choice)

▾

College Completion Rate

College Scorecard, in-state institutions (mean)

53%

Avg College Cost of Attendance

College Scorecard 2024

$25,567/yr

K-12 Quality Rank

Bottom 10 nationally

#45 of 50

School Choice / Vouchers

Available

HS Graduation Rate

Below national avg (~87%)

81.8%

Pupil-Teacher Ratio

Above national avg (~16)

22.7 students/teacher

Childcare

Sources: Child Care Aware · Census ACS 2022

▾

Avg Infant Care (Full-Time)

$1,150/mo

Utilities & Daily Costs

Sources: EIA (electricity, weekly gas) · USDA · eGRID 2022

▾

Grid Carbon Intensity

Near US average (~820)

709 lb CO₂/MWh

Avg Monthly Energy Bill

$145/mo

Electricity Rate

Below national avg (13¢)

12.3¢/kWh

Energy Mix

⚡ 14% renewable · ☀ 7% solar · 💨 1% wind

Avg Monthly Groceries

2-person household, moderate spending

$490/mo

Road Quality Rank

#28 of 50

Airports & Travel

Sources: FAA · BTS

▾

Nonstop Destinations

From state's primary airport

155+ routes

Major Hub Airport

Top-25 US airport by passengers

Yes

Culture & Lifestyle

Sources: Census CBP · Brewers Association 2024 · Pollstar · AANR/TNS · AGA 2024

▾

Urban Population

Highly urban — big city feel

90% urban

Restaurant Density

470/100K

Religious Congregations

155/100K

Pro Sports Teams

NFL + NBA + MLB + NHL + MLS

5 teams

Major Venues

Stadiums, arenas, amphitheaters (10K+ capacity)

8 venues

Craft Breweries

2.7/100K residents — Solid scene

195 breweries

Craft Distilleries

45 distilleries

Live Music

Phoenix and Tucson indie scenes; McDowell Mountain Music Festival

Strong

Transportation

Sources: NHTSA FARS · FCC · insurance rate surveys 2024 · IIHS helmet laws 2026

▾

Car Insurance (Avg Annual)

$1,890

Traffic Fatality Rate

13.4 / 100K

Broadband Access

83% of households

Work From Home

State residents who primarily work from home (ACS)

462,724 workers

Social & Legal

Sources: Guttmacher · KFF · NCSL · state statutes 2026

▾

Formal Volunteering Rate

AmeriCorps / Census CPS 2023 (US ~28%)

30.0%

Votes in Local Elections

AmeriCorps / Census CPS 2023

55.4%

Abortion Access

15-week ban effective 2022; 1864 near-total ban blocked

Banned

LGBTQ+ Protections

Moderate

Marijuana

Recreational

Minimum Wage

$14.35/hr

Right to Work

Yes

Sports Betting

Legal

Casino Gambling

Tribal casinos

Online Gambling

Illegal

State Lottery

Sports betting launched 2021. Tribal casinos only — no commercial casinos. Strong horse racing tradition.

Yes

Age of Consent

Sex Education

No state sex ed mandate

Abstinence-plus

Nude Beaches & Naturist Clubs

Shangri La Ranch (New River) · Mira Vista Resort (Tucson)

Clubs only

Environment & Climate

Sources: EPA AQI · NOAA · FEMA National Risk Index

▾

Air Quality (Annual AQI)

Near national avg

Natural Disaster Risk

Moderate

Primary Hazards

wildfireextreme-heatdrought

Politics & Gun Laws

Sources: OpenElections 2024 · Giffords 2025 · state statutes

▾

2024 Presidential Vote

R+5

Gun Laws

Gun ControlF

2A LibertyA+

Carry Permit

No permit required

Purchase Permit Required

Carry in Bars

Allowed

Carry in Restaurants

Allowed

Carry in Places of Worship

Permit holders may carry unless posted; no consuming; open carry prohibited in alcohol venues.

Allowed

Gambling

Legal

Jobs & Economy

Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS

▾

Job Openings Rate (JOLTS)

Near US average (~4.5%)

4.9%

Quits Rate (JOLTS)

Workers quit when they can find better; BLS 2024 average

2.1%

Job Market

+2.8% job growth · 3.7% unemployment

Strong

Top Industries

HealthcareRetailFinance

Tech Jobs

#18 of 50

Healthcare Jobs

#30 of 50

Remote Work

20% of workers

Median Household Income

$73,451

Union Membership

Among the least unionized states (BLS 2025)

4.1% of workers

Business Climate

Sources: Tax Foundation · state filings

▾

Corporate Income Tax

4.9%

LLC Formation Fee

$50 one-time

LLC Annual Fee

None

Business Climate Rank

#14 of 50

Daily Life

Sources: American Pyrotechnics Association · state statutes 2026 · IIHS

▾

Gas Price (Regular)

Below avg (-0.06 vs national avg)

$3.24/gal

Consumer Fireworks

Legal statewide; some cities restrict during drought/fire danger

Legal

Motorcycle Helmet Law

Required under 18 (IIHS 2026)

Age-Limited

Weather & Natural Risks

Sources: NOAA · NWS Storm Prediction Center · FEMA NRI

▾

Winter Severity

Avg January high: 65°F

Very Mild

Summer Heat

Extreme summer heat

105°F avg July

Annual Rainfall

13" / yr

Tornado Risk

Very Low

Hurricane Risk

Very Low

Wildfire Risk

High

Flood Risk

Low

Natural Hazards

Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023

▾

50HIGH danger

Bark scorpion capital of North AmericaTarantula migration seasonRattlesnake density HIGHWildfire extreme risk

Venomous Snakes

High

Spider Hazard

Brown Recluse Zone

Scorpions

Extreme

Hurricane Risk

Minimal

Tornado Risk

Low

Wildfire Risk

Extreme

Earthquake Risk

Moderate

Armadillo Leprosy Risk

Low

Danger score is a composite index. Methodology ↗

Veteran Benefits

Sources: VA.gov · Military.com state guide · Tax Foundation

▾

Veteran-Friendly Score

10.2% of state population are veterans

84/100

Property Tax Exemption

Disabled vets: property tax reduction

Partial

Military Retirement Pay

Tax Exempt

Active Duty Pay

Tax Exempt

VA Facilities Access

Good

Notable Benefits

Military retired pay fully exempt from income tax

Explore Arizona counties

Income, housing, poverty, healthcare — ranked by county

Explore Counties

See your full cost of living in Arizona

Housing, taxes, childcare, insurance — all estimated.

Calculate

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Trending in Arizona

Opinion: Trump-picked candidates Biggs, Petersen, Kolodin—election deniers—seek Arizona’s most powerful offices - Northeast Valley News

Northeast Valley News · Sep 8

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PBS · Aug 21

First Defense Building Inspection: Arizona Fall Housing Market Puts New Focus on Property Condition - EIN Presswire

EIN Presswire · Sep 8

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Arizona will change its laws. We'll email you when it does.

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Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI Crime Data Explorer 2023. Healthcare: Commonwealth Fund 2023; life expectancy from County Health Rankings 2024. Education: Education Week 2023. Housing: Zillow monthly index and Census ACS 2022. Insurance: rate surveys 2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.