Arizona vs Tennessee
Arizona vs. Tennessee – Property‑Tax Comparison (2023 ACS)
Intro
Both Arizona and Tennessee 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), the two states have similar median home values and tax amounts, but they differ slightly in effective tax rates. The table below presents the key metrics side by side.
Side‑by‑Side Metrics
| Metric | Arizona | Tennessee |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 0.55 % |
| Median home value | $358,900 | $256,800 |
| Median annual property tax | $1,858 | $1,400 |
| Tax on a $250,000 home | $1,294 | $1,363 |
| Tax on a $500,000 home | $2,589 | $2,726 |
| Median household income | $76,872 | $67,097 |
| Internal link (AZ) | Arizona property tax | |
| Internal link (TN) | Tennessee property tax |
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).
Which State Has the Lower Property‑Tax Burden?
Winner (lower tax rate): Arizona
- Rate difference: 0.03 % (Arizona’s rate is about 5.04 % lower than Tennessee’s).
- Annual tax difference on a $250k home: $69 less in Arizona.
- Annual tax difference on a $500k home: $137 less in Arizona.
The lower effective tax rate means that, for any given home value, Arizona’s property‑tax bill is modestly smaller than Tennessee’s. The difference is most apparent when comparing identical home prices; however, the overall tax amount also depends on the median home values in each state.
Who Might Benefit Most from This Comparison?
| Audience | Relevance of the Data |
|---|---|
| Current or prospective homeowners | Understanding the effective tax rate helps estimate yearly carrying costs for a given home price. |
| Homebuyers comparing similar‑priced properties | The per‑$250k and per‑$500k tax figures illustrate the incremental tax impact of higher‑priced homes. |
| Retirees considering relocation | Property‑tax rates affect fixed‑income budgeting; the lower rate in Arizona may be advantageous, though other cost‑of‑living factors (e.g., sales tax, income tax) are not covered here. |
| Real‑estate investors | Effective tax rates influence net operating income calculations for rental or investment properties. |
| Policy analysts | The side‑by‑side data provide a concise snapshot for comparing state‑level tax structures. |
The comparison is factual and does not account for additional tax considerations such as state income tax, sales tax, or local assessment variations.
Sources
- U.S. Census Bureau, 2023 American Community Survey (5‑year estimates).
Data accessed via the Census Bureau’s “Tax‑State and Local Government Finance” tables.
All numbers are presented as reported in the ACS and have not been adjusted for inflation or local assessment changes after the survey period.
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.