Arizona vs Minnesota
Property‑Tax Comparison: Arizona vs. Minnesota
Brief overview
Both Arizona and Minnesota 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 roughly half of Minnesota’s, resulting in lower annual tax payments for comparable home values. The following sections present the data side‑by‑side, identify which state has the lower rate, and discuss the types of taxpayers for whom this information is most relevant.
Side‑by‑side key metrics
| Metric (2023 ACS) | Arizona | Minnesota |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 1.04 % |
| Median home value | $358,900 | $305,500 |
| Median annual property tax | $1,858 | $3,184 |
| Property tax on a $250,000 home | $1,294 | $2,606 |
| Property tax on a $500,000 home | $2,589 | $5,211 |
| Median household income | $76,872 | $87,556 |
| Internal link – Arizona | Arizona property tax | — |
| Internal link – Minnesota | — | Minnesota property tax |
All figures are from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which state “wins” on property tax?
Winner (lower tax burden): Arizona
- Effective tax‑rate advantage: Arizona’s rate of 0.52 % is 0.52 percentage points lower than Minnesota’s 1.04 %. This represents a 50.33 % lower effective rate.
- Annual tax difference for typical homes:
- On a $250 k home, Arizona owners pay $1,312 less per year ($1,294 vs. $2,606).
- On a $500 k home, the difference widens to $2,622 per year ($2,589 vs. $5,211).
Because the comparison is based on the effective property‑tax rate, the lower rate in Arizona directly translates into lower annual tax liabilities for homeowners at most price points.
Who is this comparison most useful for?
| Audience | Relevance of the comparison |
|---|---|
| Current homeowners | Understanding how their annual property‑tax expense may change if they relocate between the two states. |
| Prospective homebuyers | Assessing the long‑term cost of ownership, especially when budgeting for mortgage payments and taxes. |
| Retirees | Evaluating the impact of property taxes on fixed or limited incomes; lower taxes can reduce overall cost of living. |
| Real‑estate investors | Comparing tax burdens that affect cash‑flow projections for rental or investment properties. |
| Policy analysts / researchers | Using consistent ACS data to examine how tax structures differ across states. |
The data are presented without opinion or promotional language; they reflect only the fiscal differences captured in the most recent ACS estimates.
Summary
Based on the most recent ACS estimates, Arizona’s effective property‑tax rate of 0.52 % is substantially lower than Minnesota’s 1.04 %. This rate difference yields annual tax savings of $1,312 on a $250 k home and $2,622 on a $500 k home for Arizona residents. Stakeholders such as homeowners, retirees, and investors can use these figures to gauge the relative tax burden when comparing the two states.
All numbers are drawn 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.