Arizona vs Indiana
Property‑Tax Comparison: Arizona vs. Indiana
Intro
Both Arizona and Indiana levy property taxes that fund local services such as schools, roads, and public safety. According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), Arizona’s effective property‑tax rate is lower than Indiana’s, while the median home values and household incomes differ noticeably between the two states. The table below presents the key metrics side by side.
Side‑by‑Side Metrics
| Metric (2023 ACS) | Arizona | Indiana |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 0.74 % |
| Median home value | $358,900 | $201,600 |
| Median annual property tax | $1,858 | $1,496 |
| Property tax on a $250k home | $1,294 | $1,855 |
| Property tax on a $500k home | $2,589 | $3,711 |
| Median household income | $76,872 | $70,051 |
Sources: “According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).”
Which State “Wins” on Property Tax?
- Winner (lower tax rate): Arizona – its effective rate of 0.52 % is 0.22 percentage points lower than Indiana’s 0.74 %.
- Relative difference: The rate gap represents a 30.24 % lower effective tax rate in Arizona.
- Dollar impact on typical homes:
- On a $250,000 home, an Arizona homeowner pays $561 less per year than an Indiana homeowner.
- On a $500,000 home, the annual saving rises to $1,122.
The lower rate in Arizona results from the state’s assessment practices and the composition of local tax jurisdictions, whereas Indiana’s higher rate reflects its reliance on property taxes to fund a larger share of local services.
Who Is This Comparison Most Relevant For?
| Audience | Implications of the Data |
|---|---|
| Current homeowners | Those evaluating a move can compare expected annual property‑tax bills for homes at common price points ($250 k and $500 k). |
| Prospective homebuyers | Buyers can incorporate the tax differential into total cost‑of‑ownership calculations, especially when the purchase price is similar in both states. |
| Retirees and fixed‑income households | A lower effective tax rate (Arizona) may reduce the ongoing cash‑flow burden, though it should be weighed against other cost‑of‑living factors. |
| Real‑estate investors | Investors assessing rental‑income potential should factor the lower property‑tax expense in Arizona when projecting net operating income. |
| Policy analysts | The contrast illustrates how state‑level tax structures influence local revenue generation and household expenses. |
All of the above groups can use the data without presuming broader cost‑of‑living or quality‑of‑life differences, which are outside the scope of this tax‑only comparison.
Further Reading
- Detailed information on Arizona’s property‑tax system: Arizona property tax
- Detailed information on Indiana’s property‑tax system: Indiana property tax
Based on the most recent ACS estimates, the figures presented here reflect median values and may not capture local variations within each state.
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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.