Arizona vs South Dakota
Property‑Tax Comparison: Arizona vs. South Dakota
Brief overview
Both Arizona and South Dakota 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 that of South Dakota. The difference in rates translates into lower annual taxes for comparable home values in Arizona, while South Dakota’s median home values are lower and its median household income is slightly lower than Arizona’s.
Side‑by‑side metrics
| Metric (2023 ACS) | Arizona | South Dakota |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 1.09 % |
| Median home value | $358,900 | $236,800 |
| Median annual property tax | $1,858 | $2,590 |
| Property tax on a $250,000 home | $1,294 | $2,735 |
| Property tax on a $500,000 home | $2,589 | $5,469 |
| Median household income | $76,872 | $72,421 |
Sources: “According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).”
Which state has the lower property‑tax burden?
Arizona has the lower effective property‑tax rate at 0.52 % compared with South Dakota’s 1.09 %.
- Rate difference: 0.58 percentage points, which is a 52.67 % lower rate in Arizona.
- Annual tax difference for a $250,000 home: $2,735 – $1,294 = $1,441.
- Annual tax difference for a $500,000 home: $5,469 – $2,589 = $2,880.
Because the tax burden is calculated as a percentage of assessed value, the lower rate in Arizona yields lower property‑tax payments across the same home price range, even though Arizona’s median home values are higher.
Further reading: Arizona property tax | South Dakota property tax
Who benefits most from this comparison?
| Audience | Implications of Arizona’s lower rate | Implications of South Dakota’s higher rate |
|---|---|---|
| Current homeowners | Existing owners of higher‑valued homes (e.g., $500k) will see smaller annual tax bills in Arizona. | Owners of lower‑priced homes may still face higher tax bills relative to the home’s value. |
| Prospective homebuyers | Buyers looking for higher‑value properties will encounter a lower tax cost per dollar of home price in Arizona. | Buyers who prioritize lower home prices may find South Dakota’s median home cost appealing, but must account for a higher tax rate. |
| Retirees on fixed incomes | The lower tax rate can reduce overall housing expenses, which may be advantageous for retirees with limited cash flow. | Higher tax rates could increase yearly outlays, potentially requiring a larger budget for housing costs. |
| Real‑estate investors | Lower effective tax rates improve cash‑flow projections on rental or investment properties in Arizona. | Higher rates in South Dakota reduce net operating income for comparable investment properties. |
| Policy analysts / researchers | The data illustrate how tax‑rate structure, rather than home price alone, influences overall tax burden. | South Dakota’s higher rate, despite lower median home values, underscores the importance of rate levels when assessing affordability. |
All observations are derived from the most recent ACS estimates and do not incorporate other state‑level taxes, deductions, or exemptions that could affect an individual’s total tax liability.
Summary
Based on the most recent ACS estimates, Arizona wins on the metric of lower property‑tax rate, delivering a 52.67 % lower effective rate than South Dakota. This advantage translates into lower annual taxes for homeowners and prospective buyers at comparable property values. The comparison is most relevant for homeowners, prospective homebuyers, retirees, and real‑estate investors who prioritize property‑tax expenses in their financial planning.
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.