Arizona vs Texas
Arizona vs. Texas Property Taxes
Quick overview – Both Arizona and Texas have relatively high home values compared with the national average, but their property‑tax burdens differ substantially. According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), Arizona’s effective property‑tax rate is less than half that of Texas, resulting in lower annual taxes for comparable home values.
Side‑by‑side comparison
| Metric | Arizona | Texas |
|---|---|---|
| Effective property‑tax rate | 0.52 % | 1.58 % |
| Median home value | $358,900 | $260,400 |
| Median annual property tax | $1,858 | $4,111 |
| Property tax on a $250,000 home | $1,294 | $3,947 |
| Property tax on a $500,000 home | $2,589 | $7,893 |
| Median household income | $76,872 | $76,292 |
Sources: “According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates).”
Which state “wins” on property taxes?
- Winner (lower tax rate): Arizona
- Tax‑rate difference: 1.06 percentage points, which is a 67.21 % lower effective rate than Texas.
- Annual tax difference on a $250k home: $2,653 less in Arizona.
- Annual tax difference on a $500k home: $5,304 less in Arizona.
Why Arizona wins – The effective property‑tax rate of 0.52 % in Arizona is roughly one‑third of Texas’s 1.58 %. Even though Arizona’s median home value is higher, the lower rate more than offsets the price difference, producing lower median annual taxes and lower taxes on specific home‑price examples.
Who benefits most from this comparison?
| Audience | Relevance of the comparison |
|---|---|
| Current or prospective homeowners | The lower effective rate and resulting lower annual bills in Arizona can reduce the cost of ownership, especially for buyers of higher‑priced homes. |
| Retirees | Fixed‑income retirees often prioritize predictable, lower expenses. Arizona’s lower property‑tax burden may make it a more affordable option for long‑term residence. |
| Real‑estate investors | Investors evaluating cash‑flow across states will see higher property‑tax expenses in Texas, which can affect net operating income. |
| Policy analysts / researchers | The stark contrast in rates provides a clear case study of how state tax structures impact household costs despite differences in home values and incomes. |
The data are purely fiscal; other factors such as state income tax, sales tax, and local services are not addressed here.
Further reading
- Detailed information about Arizona’s property‑tax system: Arizona property tax
- Detailed information about Texas’s property‑tax system: Texas property tax
Based on the most recent ACS estimates, the figures above reflect average conditions for the 2023 period and may change as new data become available.
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.