Home purchase in Arizona
At $75,000 income
$1,143,263
Rank among states we cover
46 of 51
vs. national median
-7%
At about $1,143,263 of gross income on a $75,000 salary, a home purchase in Arizona runs 7% below the national median — 46 of 51 states this can be computed for. That's not a rounding difference: vary the price, the filing status or the county, and Arizona still lands below the middle of the pack. This purchase falls outside Arizona's 8.54% sales tax, leaving income tax as the only state-level cost behind the figure above.
Then there is property tax, every year you own it. Arizona charges 0.48% of what the home is worth — rank 48 in the country. On the same $440,600.00 home that is $2,099 $2,098.58 a year. A typical home here is worth $394,500.00, and the typical bill is $1,879.00.
Effective property tax, Arizona: about 0.48% of market value, ranking 48 nationally — $2,099 a year on the reference price above, recurring rather than due at closing. State medians behind the ratio: home value $394,500, annual tax $1,879. This is an effective rate — tax paid over market value — not a nominal millage against an assessed value, and being a statewide ratio of medians it describes no particular address.
Source: US Census Bureau ACS 5-Year Estimates, tables B25103 (Median Real Estate Taxes Paid) and B25077 (Median Value, owner-occupied). ACS 5-year estimates covering 2020–2024, so the as-of date (2024-12-31) is the end of the estimation window rather than a measurement date.
Arizona also charges a tax just for transferring the deed. On a $440,600.00 home — the national median — that comes to about $2.00. It is paid once, at closing, on top of everything above.
Real estate transfer tax, Arizona, on a $440,600 home (NAR June 2026 national median): $2.00, due at closing and excluded from the gross-up figure above.
Source: Ariz. Rev. Stat. §11-1132 — flat $2 fee; Prop. 100 (2008) bars any new state/local transfer tax, as of 2025-01-01.
South Dakota costs about the same for a home purchase
Prices in Arizona
Shopping in Arizona costs 1.11% more than the national average. Rents, which housing costs follow, run 8.58% above average, higher than prices overall. Counting from the most expensive, Arizona ranks 16 among the states. A hundred dollars of average American shopping costs $101.11 here.
The cost above uses one national price for a home purchase, so these local prices are not in it. See how prices break down in Arizona.
BEA regional price parity, all items: about 1.11% above the national level, rank 16 by price level, most expensive first. Housing (rents) parity: about 8.58% above. A national-average basket costing one hundred dollars costs $101 here.
The category figures above apply a single national default price and are not adjusted for this price level. A parity measures what a basket costs, not what a salary is worth after tax. Full Arizona price-level breakdown.
Source: US Bureau of Economic Analysis — Regional Price Parities by state (SARPP), 2023, as of 2023-12-31.
Try your own numbers
Adjust assumptions
to cover a home purchase
$689,063 invested upfront, assuming 7% a year. Includes your starting money and its growth. An illustration, not a forecast; investment growth is separate from the purchase cost above.
- Income tax (federal, FICA, state)40%$454,200
- Ownership costs21%$243,800
- Fees0%$4,663
- Home purchase39%$440,600
- Income tax (federal, FICA, state)
- Ownership costs
- Fees
- Home purchase
Data for nerds — sources, confidence and assumptions
Data for nerdssources, confidence, assumptions
Where each number comes from
| Component | Amount | Confidence |
|---|---|---|
| Item price | $440,600.00 | Your figureHigh confidence. You supplied this, so it is exact by definition. |
| Fees | $4,663.00 | Population averageLow confidence. A group statistic standing in for one person; your own costs may differ substantially. |
| Ownership costs | $243,799.95 | Population averageLow confidence. A group statistic standing in for one person; your own costs may differ substantially. |
| Income tax to earn it | $454,199.63 | StatutoryHigh confidence. This number is the law — federal, FICA and state tax rates are published rates, so the only real risk is staleness. |
Jurisdiction applied
- State:
AZ - Local income tax: none selected
Assumptions
- Property tax uses the rate for the state you picked, not one national number. You can see the amount in the breakdown above, and it changes when you change state. Around the country the rate runs from about 0.27% to about 2.11%. It is a whole-state average, worked out from what a typical home is worth and what a typical owner pays, so your own county and your own house can be some way off it. We grow that cost with general inflation only, not with real reassessments.
- Insurance ($2,470.00 a year) and upkeep ($12,472.00 a year) are national averages for a typical home. We don't scale them to your purchase price.
- We only count mortgage interest for the 11 years you hold the home, not the full thirty-year loan. You'd still owe a large balance at that point — the same as in real life if you sell or refinance early.
- The about 3.5%-a-year rise in home value is our own estimate from a long-run price index, not an official published number like the mortgage rate is. Treat it as the shakiest figure here.
- The resale value we show is what the home is worth, not what you'd walk away with. We don't subtract the mortgage you'd still owe.
- We don't include PMI — the extra insurance lenders usually require when your down payment is under a fifth of the price. If yours is smaller than shown, your real monthly cost is higher.
- We show transfer tax for Texas (none) and California (county rate only, on the national median home price). Your own state may be very different, and city taxes on expensive homes aren't included.
- Property tax uses the selected state's own effective rate — the Census ACS five-year ratio of median real estate tax paid to median home value — rather than one national figure. The rate applied appears in the cost breakdown above and changes with the state you pick; across the country it runs from about 0.27% to about 2.11%. Because it is a statewide aggregate of medians, your county and your individual assessment can sit well away from it. Reassessment and rate changes over the holding period are modeled only as generic inflation, not as a real reassessment schedule.
- The $12,472/yr figure is total spending on the home, not unavoidable upkeep. Angi builds it from improvement projects as well as routine maintenance and emergency repairs, and improvement work is the largest of the three — so treat it as what a typical owner spends on the house rather than what the house obliges them to spend. A household that does no discretionary work would spend materially less. Homeowners insurance ($2,470/yr) is likewise a national average for a typical home, not scaled to your purchase price.
- Mortgage interest is calculated only through 11 years of ownership, not the full thirty-year loan term — a large remaining balance is still owed at that point, same as in reality if you sell or refinance before the mortgage matures.
- Home price appreciation (about 3.5% a year) is a derived long-run estimate from the S&P/Case-Shiller index's own trend, not an official published single statistic the way the mortgage rate or property tax rate are — treat it as the least certain figure in this model.
- Resale value shown is gross market value at the end of the holding period, not net proceeds after paying off the remaining mortgage balance — the same simplification used for vehicle resale value elsewhere on this site.
- PMI (private mortgage insurance, typically required when a down payment is under a fifth of the price) is not modeled — if your down payment is smaller than shown here, your real monthly cost is higher.
- Real estate transfer tax is shown for Texas (none) and California (county rate only, applied to the national median home price) — your state's transfer tax, if any, may differ substantially, and city-level surtaxes on high-value homes (like Los Angeles's Measure ULA) are not included.
Sources
- ATTOM Data Solutions — 2025 Property Tax Analysis (national average effective property tax rate) as of 2026-04-01
- Bankrate (Quadrant Information Services) — national average homeowners insurance premium as of 2025-07-01
- Angi 2025 State of Home Spending Report — improvements, maintenance and emergency repairs as of 2025-12-31
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed mortgage rate as of 2026-07-30
- LodeStar Software Solutions (via Bankrate) — national average closing costs as of 2025-01-01
- Texas Constitution, Article 8, Section 29 — real estate transfer taxes prohibited as of 2016-01-01
- California Revenue & Taxation Code §11911 — county documentary transfer tax as of 2026-01-01
- National Association of Realtors — Existing-Home Sales report (median price, median tenure) as of 2026-06-01
- S&P/Case-Shiller U.S. National Home Price Index (via Macrotrends) — long-run appreciation trend as of 2026-01-01
The loan
$2,265/mo$352,480 borrowed at 6.66% over 30 years, after $88,120 down.
Early payments are mostly interest, so after 11 of 30 years you have paid 52% of the loan's total interest but retired only 17% of the principal. Only the interest actually paid within the holding period is counted in the cost above — assuming the loan runs its full term would overstate it.
Your position in the tax system
32.15% on the next dollarEvery extra dollar you earn is taxed at your marginal rate, not your average one — which is why a purchase costs more to fund than a paycheck stub suggests.
Marginal rates are read in gross-income terms: below the standard deduction an extra dollar of pay adds nothing to taxable income, so the true rate there is 0%, not the lowest bracket's. Excludes pre-tax deductions (401(k), HSA), which would lower all three.
Same purchase, different state
AZ is #6 of 51The purchase inputs and income stay the same. Your row uses your calculator settings; other states use example counties and omit local income tax. Spread across all 51: $361,829, from Nevada to New Jersey.
- $1,098,012
- Arizonayou$1,143,263
- $1,459,841
Choose a state name to compare against somewhere else.
Where every dollar goes
40% never reaches youThe $1,143,262.58 you must earn, followed to where it lands. Select a band to isolate it.
- Federal income tax$393,087.40
- FICA (Social Security + Medicare)$32,530.67
- AZ income tax$28,581.56
- Home purchase$440,600.00
- Fees$4,663.00
- Ownership costs$243,799.95
Each tax layer is the extra tax this purchase causes — that layer's tax at your income subtracted from its tax at your income plus the gross-up — so bracket boundaries the purchase straddles are handled correctly rather than smoothed over with an average rate.
Is a raise actually a raise?
you keep 68%A raise arrives on top of everything you already earn, so it is taxed at your marginal rate — not the average rate on your whole salary.
Federal, FICA, state and any local income tax — no pre-tax deductions, benefit changes, or payroll withholding quirks, all of which move the real figure. Moving into a higher bracket never taxes the income below the threshold: only the dollars above it pay the higher rate.
The arithmetic, for Arizona
Every figure below is computed, not illustrated — this is the actual chain the calculator walks for a single filer earning $75,000 in Arizona, in the 2026 tax year. Follow it down and you can check our work.
| Gross salary | $75,000 | Where every calculation starts. |
|---|---|---|
| Less the federal standard deduction | −$16,100 | The 2026 figure for a single filer. |
| Federally taxable income | $58,900 | What the bracket table is applied to. |
| Federal income tax | −$7,670 | Top bracket reached: 22.00%. |
| FICA — Social Security and Medicare | −$5,738 | 7.65% up to the wage base, then 1.45% above it. |
| Arizona taxable income | $58,900 | After Arizona's own deduction, which differs from the federal one. |
| Arizona income tax | −$1,473 | Marginal rate on the next dollar earned here: 2.50%. |
| Take-home pay | $60,120 | $14,880 withheld — 19.84% of the salary never reaches you. |
The tag price and the true cost are never the same number: earning one dollar to spend takes roughly 1.25 of them here — that's the multiplier applied to every purchase on this page.
What's different about Arizona
- Arizona does tax wages, but gently — about 1.96% at this salary, rank 40. In practice it behaves much more like a no-tax state than the headline suggests.
- Arizona lands mid-table for a home purchase — rank 46, $1,143,263 of gross income. End to end the country covers $361,829, from Nevada at $1,098,012 to New Jersey at $1,459,841.
- The closest state to Arizona on this purchase is South Dakota, at $1,148,310 — $5,047 apart. Politically these two can feel nothing alike. Add up the whole stack and they still land a few dollars from each other.
- Arizona imposes an income tax, but at about 1.96% effective at the representative salary it ranks 40 nationally. The practical effect on the gross-up is closer to a no-income-tax jurisdiction than the statutory schedule implies, which is a common reason state comparisons drawn from headline rates mislead.
- Arizona sits mid-distribution for a home purchase at rank 46, requiring $1,143,263 of gross income. The national spread is $361,829, from Nevada at $1,098,012 to New Jersey at $1,459,841.
- South Dakota is the nearest state to Arizona on this purchase at $1,148,310, a difference of $5,047. Full-stack totals routinely converge across states whose statutory structures and politics differ sharply, because the earn-side and spend-side layers offset one another.
What this page can't tell you
Worth being straight about, because a number without its limits is just a claim.
- These figures assume one filer with no dependants. They also assume nothing goes into a retirement account or an HSA before tax, and no itemized deductions. Any of those would cut the tax. That would cut the true cost too.
- Ownership costs fall back on national averages sometimes. That happens where a state figure does not exist, or could not be checked against a primary source. The data panel on the result says so outright when it does. We do not dress an estimate up as a measurement.
- Figures assume a single filer with no dependants, no pre-tax retirement or HSA contributions, and the standard deduction rather than itemized deductions. Each of those would reduce taxable income and therefore the gross-up, so the figures here should be read as an upper bound on the earn-side requirement for this household shape.
- Ownership-layer inputs fall back to national averages where a state-level figure is unavailable or could not be verified against a primary source. Those fallbacks are disclosed per-figure in the provenance panel rather than being silently blended into the total, so an estimate is never presented with the same confidence as a measurement.
Questions people ask
Why is this cheaper in Arizona?
The saving is in the earning, not the price tag. Arizona leaves more of your pay intact, which is why this lands at $1,143,263, saving $80,397 against the median state.
How much of this is sales tax?
It lands at about 8.54% at the register, depending on the exact address. Rates move across town lines, so treat it as the working figure rather than the final one.
Where in the country is this cheapest?
Nevada sits at the bottom, $45,250 below where you are. New Jersey sits at the top, $316,579 above. Worth knowing if you are weighing a move.
What does Arizona's ranking on this actually mean?
It means Arizona places 46 when every state we can compute this for is lined up by how much you must earn, most expensive first. It is a ranking of tax structure, not of prices in the shops.
What places Arizona below the national median here?
The state sits below the national median on the combined wedge applied to this outlay — income tax, purchase tax, or both. Required gross income is $1,143,263, $80,397 under the median; the differential is a function of tax structure, not of local prices, which this model holds constant.
What is the purchase-tax component in Arizona?
The representative combined state-and-local rate is about 8.54%, applied to the taxable outlay. ⚠️ Local sourcing means the effective rate varies by point of sale within Arizona; the figure here is representative, not jurisdiction-specific.
What is the national spread on this purchase?
Against Nevada at the light end, Arizona carries $45,250 of additional gross requirement; against New Jersey at the heavy end it is $316,579 lighter. ⚠️ The model holds the pre-tax outlay constant across states, so the spread reflects tax structure alone and not regional price levels.
How is the state ranking on this purchase constructed?
States are ordered DESCENDING by required gross income at a constant pre-tax outlay — first place is the most expensive — and Arizona occupies position 46. ⛔ The ranking is not a cost-of-living measure — regional price variation is deliberately excluded so the tax effect is isolable.
Keep going
What you must earn to buy it
A $75,000 salary
| Sticker price | $440,600 |
|---|---|
| Out of pocket | $440,600 |
| Income tax on earning it | $275,383 |
| Hours of work | 114.2 work months |
38.46% of that pay never reaches the purchase.
This example uses the entered price and applicable sales tax. The full calculation above may also include fees, ownership costs.
Show your work
A $75,000 salary
| PriceWhat you typed | $440,600 |
|---|---|
| Sales taxNo sales tax applied to this purchase | $0.00 |
| Out of pocketPrice plus sales tax | $440,600 |
| Federal, next dollarIRS brackets, 2026 | 22% |
| Social Security and MedicareFICA rates, 2026 | 7.65% |
| State, next dollarAZ brackets, 2026 | 2.5% |
| Pay you must earnWalked up your own bracket boundaries | $715,983 |
| Tax on earning itPay needed, less out of pocket | $275,383 |
This example uses the entered price and applicable sales tax. The full calculation above may also include fees, ownership costs.
If the money stayed put
A $75,000 salary
| Spent today | $440,600 |
|---|---|
| Growth given up | $348,448 |
| Pay needed to buy it | $715,983 |
Assumes a 6% annual return that you can edit. This example uses the entered price and applicable sales tax. The full calculation above may also include fees, ownership costs.