Arizona's 30 Largest Cities and Towns Ranked for Local Taxes
Arizona is a hot destination for retirees and other people looking to relocate--and I'm not talking about the weather. From July 1, 2017, to July 1, 2018, more than 83,000 people moved to Arizona from other states. That's second only to Florida in terms of population growth from domestic migration during that time period.
The Grand Canyon State's sizzling population growth is partly due to its low state tax burden. It's the eighth-most taxpayer-friendly state in the country, according to our latest rankings. That favorable assessment is based largely on Arizona's low state income taxes, but you can still get burned by local property and sales taxes depending on where you live (property taxes typically drain your wallet the most). So if you're packing your bags and heading to Arizona, or looking to relocate within the state, do yourself a favor and compare the local tax rates first. To make that comparison easier, we ranked the 30 largest cities and towns in Arizona (including "census designated places") based on the estimated local tax burden (from highest to lowest). Our estimates reflect what a hypothetical couple would pay in common county and municipal taxes in each location if they moved there and purchased a $250,000 home. Check out our list to see where you can go to cool down your overall tax bill.
30. Marana
Kiplinger's Arizona Tax Ranking: 30 of 30 (High Tax Burden)
Population (Rank): 41,720 (25th)
County: Pima
Estimated Annual Local Taxes: $4,652
Property Taxes in Marana
Sorry, Marana residents, but your town has the highest estimated local tax burden of the 30 Arizona locales in our rankings. Property taxes are primarily to blame for the town's poor showing. In 2017 (the latest U.S. Census data available), the average property tax rate in Marana was about $1,090 per $100,000 in home value. Based on the average rate, the annual property tax on our hypothetical couple's $250,000 home in Marana would be about $2,726. That's the highest amount on our list.
General Sales Tax in Marana
In addition to the 5.6% statewide sales tax, a 0.5% county tax and a 2% municipal tax are tacked on to retail sales in Marana. That comes to a combined general sales tax rate of 8.1% in the town, which is average for the cities and towns in our survey.
Sales Tax on Food and Drinks in Marana
Although there are no state or county taxes in Arizona on the sale of groceries, a number of cities and towns in the state impose their own taxes on "food for home consumption." Thankfully, Marana is not one of them, and that helps keep the town's overall tax burden a little lower. However, if you're dining out or wetting your whistle at your favorite tavern in Marana, expect a combined (state, county and local) restaurant and bar sales tax of 8.1% to show up on your check. That rate is actually below average for the locales on our list.
Sales Tax on Utilities and Communications in Marana
Local sales taxes on utilities such as electricity, natural gas and water in Marana are high. The combined tax rate for these is 10.1%, which is tied for the third-highest utilities tax rate on our list. The local sales tax on communications services, such as phones and cable television, is on the high end, too. The combined rate for this tax is also 10.1%, which is the sixth-highest communications tax rate in our rankings.
29. Tucson
Kiplinger's Arizona Tax Ranking: 29 of 30 (High Tax Burden)
Population (Rank): 530,905 (2nd)
County: Pima
Estimated Annual Local Taxes: $4,625
Property Taxes in Tucson
You'll pay more in local taxes in Arizona's second-largest city than you will in most other places in the state. Tucson has the third-highest average property tax rate on our list, which is the driving force behind the city's overall high local tax burden. The 2017 average property tax rate in Tucson was $1,016 per $100,000 in home value. If you own a $250,000 home in Tucson, your yearly property tax bill will be about $2,540.
General Sales Tax in Tucson
At 8.7%, the combined (state, county and local) general sales tax rate in Tucson is a tad above average when compared with the rate in the other Arizona cities we evaluated.
Sales Tax on Food and Drinks in Tucson
There's no local tax on groceries in Tucson. That's good for residents. There is, however, a combined 8.7% sales tax on restaurant and bar tabs in the city. That's right around average for that tax, though.
Sales Tax on Utilities and Communications in Tucson
Utility and
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