One of the questions we often receive from out-of-state buyers is “Why would I buy in Arizona when I can pay no income taxes in Texas and Florida?” Well, our answer is simple: you should add up ALL OF THE TAXES you will pay in each state in order to help determine the overall tax burden for each state.
A recent study out by Self.inc helped answer this question for us. In this study, Self compared what American’s will pay over their lifetime, by state, and broke down this tax burden further by earnings taxes, personal spending (sales tax), property taxes, and automobile taxes. When combined, residents of Arizona pay an average of $420,603 in lifetime taxes versus $378,184 (slightly lower) for Floridians, and $473,007 (higher) for Texans. And what is the major driver of Arizona’s relatively low tax burden? Our lower property taxes – which rank 36/50 for one the lowest property tax states! Arizona also ranks lower in earnings taxes (31/50) as well…not to mention the current proposed budget which may replace our current state income tax with a 2.5% flat tax.
Now, if you are a luxury home owner or want to buy a luxury home in Arizona, this is good news indeed. Most luxury home owners in Arizona benefit from our relatively low income taxes but especially our low property taxes as well. And for all those people who want to pass-up Arizona for places like Texas, well, just remember that when it comes to overall taxes, Arizona is still a better bet!
HOW WE CAN HELP YOU…
The Goldman Ruge Luxury Group provides luxury property owners, buyers, and sellers in Arizona with the highest level of service and support when dealing with one of the largest personal financial decisions our clients will make in Arizona. Our clients depend on us as their trusted advisors for all aspects associated with their luxury properties both including and beyond the home buying and selling processes by helping them protect and maximizing the asset value of their luxury properties. We primarily focus on luxury property sales in the Paradise Valley, Arcadia, Scottsdale, and Phoenix areas.
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