Arizona vs Florida
Property Tax Comparison: Arizona vs. Florida
Intro
Both Arizona and Florida are popular destinations for homeowners and retirees, but their property‑tax burdens differ. Using the same data source—the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates)—the two states can be compared on effective tax rates, median home values, and typical annual tax payments.
Side‑by‑side comparison
| Metric | Arizona | Florida |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 0.79 % |
| Median home value | $358,900 | $325,000 |
| Median annual property tax | $1,858 | $2,555 |
| Tax on a $250,000 home | $1,294 | $1,966 |
| Tax on a $500,000 home | $2,589 | $3,931 |
| Median household income | $76,872 | $71,711 |
| Source | Arizona property tax | Florida property tax |
| Data source | According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates) | According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates) |
Which state “wins” on property tax?
- Winner (lower effective tax rate): Arizona (0.52 % vs. 0.79 %).
- Rate difference: 0.27 percentage points, which is a 34.15 % lower effective rate than Florida.
- Annual tax difference on a $250k home: $672 less in Arizona ($1,294 vs. $1,966).
- Annual tax difference on a $500k home: $1,342 less in Arizona ($2,589 vs. $3,931).
Because the effective property‑tax rate is lower, Arizona imposes a smaller tax burden on comparable property values. The difference holds true across the two example home price points and is reflected in the median annual tax figures.
Who benefits most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current homeowners | Lower effective rates translate directly into reduced yearly payments, especially for owners of higher‑valued homes. |
| Prospective homebuyers | The tax differential can affect total cost of ownership when evaluating homes near the $250k–$500k price range. |
| Retirees | Since many retirees rely on fixed incomes, a lower property‑tax rate (Arizona) may be more compatible with budget constraints, though other factors such as state income tax, sales tax, and climate also play roles. |
| Investors | Effective tax rate impacts cash‑flow calculations; Arizona’s lower rate may improve net operating income for rental properties. |
| Policy analysts | The data illustrate how state‑level tax policies affect household expenses relative to median incomes. |
All of the above groups can use the presented figures to compare the property‑tax component of total living costs in the two states. The analysis is purely descriptive and does not account for other taxes, fees, or cost‑of‑living variables.
Conclusion
Based on the most recent ACS estimates, Arizona’s effective property‑tax rate of 0.52 % is lower than Florida’s 0.79 %, resulting in modest but consistent savings for homeowners at typical price points. Stakeholders—whether homeowners, retirees, or investors—should consider these differences alongside other financial and lifestyle factors when evaluating the two states.
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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.