Arizona vs Kentucky
Property‑Tax Comparison: Arizona vs. Kentucky
Quick overview – 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 Kentucky’s is 0.77 %. The lower rate makes Arizona the “winner” in a straight tax‑rate comparison, producing smaller annual tax bills for comparable home values.
Side‑by‑side metrics
| Metric | Arizona | Kentucky |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 0.77 % |
| Median home value | $358,900 | $192,300 |
| Median annual property tax | $1,858 | $1,472 |
| Tax on a $250,000 home | $1,294 | $1,914 |
| Tax on a $500,000 home | $2,589 | $3,827 |
| Median household income | $76,872 | $62,417 |
| Internal reference | Arizona property tax | Kentucky property tax |
All figures are drawn from the U.S. Census Bureau’s 2023 ACS 5‑year estimates.
Who wins the tax‑rate comparison?
- Winner (lower tax rate): Arizona
- Tax‑rate difference: 0.25 percentage points, which is a 32.37 % lower effective rate than Kentucky’s.
- Annual tax difference on a $250k home: $620 less in Arizona.
- Annual tax difference on a $500k home: $1,238 less in Arizona.
The advantage stems from Arizona’s lower effective tax rate. Even though Arizona’s median home value is higher, the lower rate translates into smaller tax bills for identical property values.
Which audiences benefit most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current or prospective homeowners | The lower effective rate in Arizona reduces annual out‑of‑pocket costs, especially for buyers of higher‑priced homes. |
| Retirees on fixed incomes | A lower property‑tax burden can make Arizona more affordable for retirees who rely on limited income streams. |
| Investors comparing cash‑flow | Lower taxes improve net operating income for rental properties priced at $250k–$500k. |
| Policy analysts / researchers | The data illustrate how state‑level tax structures differ, useful for fiscal studies. |
| Relocating families | Combined with median household income data, the figures help assess overall affordability. |
Summary
Based on the most recent ACS estimates, Arizona’s effective property‑tax rate of 0.52 % is lower than Kentucky’s 0.77 %, resulting in modest but consistent tax savings across a range of home values. Homeowners, retirees, and real‑estate investors who prioritize a lower property‑tax expense may find Arizona more advantageous, while Kentucky’s lower median home price and median household income suggest a different affordability profile that could be relevant for buyers seeking lower purchase prices despite higher tax rates.
All numbers are sourced from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
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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.