Arizona State Income Tax (Mesa, Prescott: renting, car registration, homeowners insurance)

[rich67]

I was wondering if someone could give me a little info on state income tax in Arizona. I plan on retiring there when I turn 55. My retirement income will be around 50k-56k a year (est). I am wondering if there is a set percentage for the state income tax based on that income. I am in Florida where there is no income tax, so this is a particular concern of mine.
Also, I had read that seniors (I am assuming age 55?) get breaks on property taxes, do they give retirees breaks on the income tax as well?
If anyone has any info or some links to this info, it would be appreciated. Trying to figure out how much I will have for living expenses. I plan on renting at first and buying once I decide on a place. Looking mainly at Sedona, Page, or Prescott.
Thanks.

[Ponderosa]

Originally Posted by rich67

I was wondering if someone could give me a little info on state income tax in Arizona. I plan on retiring there when I turn 55. My retirement income will be around 50k-56k a year (est). I am wondering if there is a set percentage for the state income tax based on that income. I am in Florida where there is no income tax, so this is a particular concern of mine.
Also, I had read that seniors (I am assuming age 55?) get breaks on property taxes, do they give retirees breaks on the income tax as well?
If anyone has any info or some links to this info, it would be appreciated. Trying to figure out how much I will have for living expenses. I plan on renting at first and buying once I decide on a place. Looking mainly at Sedona, Page, or Prescott.
Thanks.

Income tax rates range from about 2.5 to 4.5% of taxable income. For your income, I would guess you will be around 2.75-3, but obviously much depends on personal circumstances. There are property tax benefits for seniors, but they are income related. You won't qualify at 50K. Property taxes and homeowners insurance are much lower than FL, so things might balance out a bit if you own a home.

FWIW, you may find it hard to live in Sedona or Prescott on that income as well. Those places are $$$. Check into Prescott Valley, Dewey, Cottonwood, Clarkdale, Camp Verde, Cornville, for somewhat similar digs at much lower costs.

[rich67]

Thank you, that's what I was wondering.

FWIW, you may find it hard to live in Sedona or Prescott on that income as well. Those places are $$$. Check into Prescott Valley, Dewey, Cottonwood, Clarkdale, Camp Verde, Cornville, for somewhat similar digs at much lower costs.

I have heard this on here so much about Sedona. I understand housing is pricier in Sedona than in other comparable Arizona cities. But the cost of housing isn't too much of an issue for me- if I do buy, I will be buying a small condo and it will be mortgage free. What costs more? Groceries? Auto insurance? Gas? I was out there in 2010, and the cost of everything seemed on par with what I pay in Florida, in all honesty. I can live quite comfortably on my current income, which is actually much less than what I will be earning during retirement due to child support and other miscellaneous expenses.
If property tax is less and so is homeowner's, then I'm ahead of the game, even with the higher Az car registration costs.
I was eyeing Cottonwood as well. How is that area? Never checked it out when I visit. I need a place that has a lot of outdoor activity. I hike, camp, mountain bike, and boat- I am still going to do all that when I retire.
I am just curious why Sedona has such a stigma attached to it about being expensive-besides housing, which is the obvious issue- what else costs so much there that makes it a place you can only afford to live if you earn 70k plus?

[Ponderosa]

Originally Posted by rich67

Thank you, that's what I was wondering.

I have heard this on here so much about Sedona. I understand housing is pricier in Sedona than in other comparable Arizona cities. But the cost of housing isn't too much of an issue for me- if I do buy, I will be buying a small condo and it will be mortgage free. What costs more? Groceries? Auto insurance? Gas? I was out there in 2010, and the cost of everything seemed on par with what I pay in Florida, in all honesty. I can live quite comfortably on my current income, which is actually much less than what I will be earning during retirement due to child support and other miscellaneous expenses.
If property tax is less and so is homeowner's, then I'm ahead of the game, even with the higher Az car registration costs.
I was eyeing Cottonwood as well. How is that area? Never checked it out when I visit. I need a place that has a lot of outdoor activity. I hike, camp, mountain bike, and boat- I am still going to do all that when I retire.
I am just curious why Sedona has such a stigma attached to it about being expensive-besides housing, which is the obvious issue- what else costs so much there that makes it a place you can only afford to live if you earn 70k plus?

I think it is mostly housing. Homes there seem to start around 400K, though I suppose there are cheaper alternatives. Other costs are probably in line with what you see in FL. As for Cottonwood, I would suggest you check the forum or start another thread on that town to get better results.

[Gandalara]

Originally Posted by rich67

I was wondering if someone could give me a little info on state income tax in Arizona. I plan on retiring there when I turn 55. My retirement income will be around 50k-56k a year (est). I am wondering if there is a set percentage for the state income tax based on that income. I am in Florida where there is no income tax, so this is a particular concern of mine.
Also, I had read that seniors (I am assuming age 55?) get breaks on property taxes, do they give retirees breaks on the income tax as well?
If anyone has any info or some links to this info, it would be appreciated. Trying to figure out how much I will have for living expenses. I plan on renting at first and buying once I decide on a place. Looking mainly at Sedona, Page, or Prescott.
Thanks.

For the income tax go to the AZ Dept of Revenue - look at the 5th form on the list (Resident Personal Income Tax Package - This easy to use package features "Fill it in...It does the math"). You can fill it in with your estimated numbers and see where you end up, money-wise.

As for property taxes, with the exception of centrally valued properties such as airlines, railroads, and mines, property tax in Arizona is assessed and administered in each individual county by the county assessor. In 2006-2008 for property taxes, Apache County was the cheapest and Maricopa County was the most expensive. That may have changed by now

[Ponderosa]

Based on outdoor stuff, I'd pick none of the above. Payson would be a better choice, close to lakes, forests, etc. E. Mesa and especially Fountain Hills in the PHX metro area is much closer to boating than anything in the Verde valley area. Payson is a little cool, PHX a little warm. Kingman is a reasonably good choice too - not too far to Colorado River lakes and L. Meade and it has decent temps.

[las vegas drunk]

Originally Posted by rich67

I was wondering if someone could give me a little info on state income tax in Arizona. I plan on retiring there when I turn 55. My retirement income will be around 50k-56k a year (est). I am wondering if there is a set percentage for the state income tax based on that income. I am in Florida where there is no income tax, so this is a particular concern of mine.
Also, I had read that seniors (I am assuming age 55?) get breaks on property taxes, do they give retirees breaks on the income tax as well?
If anyone has any info or some links to this info, it would be appreciated. Trying to figure out how much I will have for living expenses. I plan on renting at first and buying once I decide on a place. Looking mainly at Sedona, Page, or Prescott.
Thanks.

There are many towns in Nevada that are comparable to Sedona, Page, or Prescott in Nevada. Nevada has no state income tax just like Florida.

[rich67]

Thanks Gandalara for the link.
Drunk, the only towns I really know of in Nevada are Vegas and Laughlin..not familiar with much of anything else out there; it seems pretty desolate. I love visiting Vegas, but can't see living there. I'm focused primarily on Az and Utah also. I guess I picked all the states with taxes! LOL.

[las vegas drunk]

Originally Posted by rich67

Thanks Gandalara for the link.
Drunk, the only towns I really know of in Nevada are Vegas and Laughlin..not familiar with much of anything else out there; it seems pretty desolate. I love visiting Vegas, but can't see living there. I'm focused primarily on Az and Utah also. I guess I picked all the states with taxes! LOL.

I was referring to Reno, Fallon, Lake Tahoe, Elko, Ely and Tonopah as being comparable to the Arizona cities you listed.

[keninaz]

Originally Posted by rich67

I was wondering if someone could give me a little info on state income tax in Arizona. I plan on retiring there when I turn 55. My retirement income will be around 50k-56k a year (est). I am wondering if there is a set percentage for the state income tax based on that income. I am in Florida where there is no income tax, so this is a particular concern of mine.
Also, I had read that seniors (I am assuming age 55?) get breaks on property taxes, do they give retirees breaks on the income tax as well?
If anyone has any info or some links to this info, it would be appreciated. Trying to figure out how much I will have for living expenses. I plan on renting at first and buying once I decide on a place. Looking mainly at Sedona, Page, or Prescott.
Thanks.

We are in your bracket money wise ($52+K) and retired here in AZ We have no itemized deductions so it's pretty straight forward.
We paid AZ $834 last year.
That may give you an idea.