Arizona vs California
Property‑Tax Comparison: Arizona vs. California
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Arizona and California differ markedly in effective property‑tax rates, home values, and the resulting tax bills. The data show that Arizona’s property‑tax rate is lower, while California’s median home values are substantially higher. The following sections present the key metrics side‑by‑side, identify which state has the lower rate, and indicate the groups for whom this information is most relevant.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Arizona | California |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 0.71 % |
| Median home value | $358,900 | $695,400 |
| Median annual property tax | $1,858 | $4,926 |
| Property tax on a $250,000 home | $1,294 | $1,771 |
| Property tax on a $500,000 home | $2,589 | $3,542 |
| Median household income | $76,872 | $96,334 |
Sources: “Effective property tax rate,” “Median home value,” “Median annual property tax,” and “Median household income” from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property‑Tax Rate?
Arizona has the lower effective property‑tax rate (0.52 % vs. 0.71 %).
- Rate difference: 0.19 percentage points, which is a 26.92 % lower rate relative to California.
- Annual tax difference on a $250,000 home: $477 less in Arizona.
- Annual tax difference on a $500,000 home: $953 less in Arizona.
Because the comparison is based on the effective tax rate, the lower rate in Arizona translates into lower annual property‑tax payments for homes of comparable value, even though California’s median home price is nearly double that of Arizona.
Who Benefits From This Comparison?
| Audience | Why the data matter |
|---|---|
| Current or prospective homeowners | Understanding the tax burden helps in budgeting for home ownership and comparing overall affordability between the two states. |
| Retirees and fixed‑income households | Lower property‑tax rates can reduce the ongoing cost of homeownership, an important factor for those on a limited income. |
| Real‑estate investors | Effective tax rates affect cash‑flow calculations and net‑return projections for rental or investment properties. |
| Policy analysts and researchers | The figures provide a baseline for examining how tax policy interacts with housing markets and household finances in each state. |
Further Reading
- Detailed information on Arizona’s property‑tax structure: Arizona property tax
- Detailed information on California’s property‑tax structure: California property tax
Summary
Based on the most recent ACS estimates, Arizona’s effective property‑tax rate of 0.52 % is lower than California’s 0.71 %. This results in lower annual tax payments for comparable home values, a factor that is especially relevant to homeowners, retirees, and investors evaluating the overall cost of owning property in either state.
Explore More Comparisons
Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.