Arizona vs Colorado
Property‑Tax Comparison: Arizona vs. Colorado
Intro
Both Arizona and Colorado levy property taxes that are below the national average. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Arizona’s effective property‑tax rate is 0.52 % while Colorado’s is 0.49 %. The two states also differ in median home values, median household incomes, and the resulting annual tax amounts for typical home‑price scenarios. The following table places the key metrics side by side.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Arizona | Colorado |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 0.49 % |
| Median home value | $358,900 | $502,200 |
| Median annual property tax | $1,858 | $2,448 |
| Property tax on a $250,000 home | $1,294 | $1,219 |
| Property tax on a $500,000 home | $2,589 | $2,438 |
| Median household income | $76,872 | $92,470 |
Sources: According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Tax Burden?
- Winner (lower effective rate): Colorado – its rate of 0.49 % is 0.03 percentage points lower than Arizona’s 0.52 %.
- Relative difference: The 0.03‑point gap represents a 5.83 % lower rate when expressed as a proportion of Arizona’s rate (0.03 ÷ 0.52 ≈ 0.0583).
- Dollar impact on typical homes:
- For a $250,000 home, Colorado’s tax is $75 less per year than Arizona’s ($1,219 vs. $1,294).
- For a $500,000 home, the difference widens to $151 per year ($2,438 vs. $2,589).
The lower effective rate in Colorado is the primary factor for the “winner” designation, even though Colorado’s median home values and median household incomes are higher than Arizona’s.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current homeowners | Understanding how a change of residence could affect annual property‑tax payments. |
| Prospective homebuyers | Comparing the tax component of total housing costs alongside median home values. |
| Retirees | Evaluating tax burden relative to fixed‑income budgets; lower rates can reduce overall living expenses. |
| Real‑estate investors | Assessing the impact of tax rates on cash‑flow calculations for rental properties. |
| Policy analysts | Using the effective‑rate figures to compare fiscal structures across states. |
The comparison is factual and does not favor either jurisdiction; it simply presents the most recent ACS data to help the above groups make informed decisions.
Further Reading
- Detailed information on Arizona’s property‑tax system: Arizona property tax
- Detailed information on Colorado’s property‑tax system: Colorado property tax
Based on the most recent ACS estimates, the figures above reflect statewide averages and may not capture local variations within each 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.