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Relocating to Arizona: state taxes, residency rules and cost of living

Official figures for Arizona: state income tax, capital gains, estate and inheritance tax, sales tax and the residency test, with rents, home values, price levels and safety from federal statistics.

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2.5%Top state income tax rate
n/aState sales tax rate
$1,698Median gross rent per month
100.7Price level (US = 100)
Data updated 30 October 2026 Official sources: state revenue departments, Census Bureau, BEA, EIA, FBI Also served to AI agents via MCP

The short answer

What does it cost to live in Arizona?

Arizona state income tax: Flat rate of 2.5%. Median gross rent is $1,698 per month and the price level is 100.7 against a US average of 100. Sales, estate and inheritance taxes and the residency rule are set out below with their sources.

Evidence: Official source · Machine-readable data · As of 30 October 2026

State tax rules

State taxes in Arizona

Each rule below is read from the Arizona revenue department or statute and checked against an independent table. Local taxes are not included.

State income tax
Flat rate of 2.5%
Source

State level only. Local income taxes (for example city or county taxes) and local sales taxes are added on top where they exist.

Cost of living

Housing, prices and safety in Arizona

Housing, prices and safety in Arizona
MetricValue
Median gross rent per month$1,698
Median home value$427,600
Property tax as a share of home value0.44%
Median real estate taxes paid per year$1,894
Median household income$82,940
Price level (US = 100)100.7
Housing price level (US = 100)106.8
Residential electricity price15.36 cents per kWh

Rent, home value, property tax and income: Census Bureau, American Community Survey 2025. Price levels: BEA Regional Price Parities 2024. Electricity: EIA, year to date through August 2026.

Move comparisons

Moves to and from Arizona

Back to the state overview · Methodology and sources

Questions

Living in Arizona: common questions

Does Arizona have a state income tax?

Arizona state income tax: Flat rate of 2.5%. Federal income tax applies in addition, as in every state.

How much does housing cost in Arizona?

In Arizona the median gross rent is $1,698 per month and the median value of an owner-occupied home is $427,600, according to the Census Bureau American Community Survey 2025.

Information, not tax or legal advice. Rates are statutory state rates for the stated year; local income, sales and property taxes, deductions and federal tax are not included. Statistics are the latest official releases for the year shown. Confirm your own position with the state revenue department or a tax adviser.

Plan the move with a specialist

Residence, tax domicile and timing decide what a move is worth. Our consultants help you weigh state tax, cost of living and your immigration status together, in confidence.

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