Retirement and taxes (Surprise: low income, flat fee, insurance)

[texas7]

I know AZ has both federal and state income taxes and somewhat lower property taxes. What tax breaks, if any, do persons over 65 get in Arizona?

[LookingatFL]

Hi texas7. I moved from Austin. My property tax in Austin was over $10K, My property tax in Surprise is about $900. Unlike TX, there are no exemptions for property tax due to age.... there doesn't seem to need to be one based on cost. There is an exemption based on financial need. Unlike TX, I don't believe AZ has a cap on how much property taxes can rise in a year. Unlike TX, AZ does not have a Robin Hood tax for the disadvantaged school districts.

AZ does not tax Social Security benefits for State Income Tax. AZ does have a standard and itemized deduction for State Income Tax.

[uaeebs86]

Originally Posted by LookingatFL

Hi texas7. I moved from Austin. My property tax in Austin was over $10K, My property tax in Surprise is about $900. Unlike TX, there are no exemptions for property tax due to age....

I thought once you reached a certain age (65?) in Arizona you could have your property tax frozen so that it would never go up as long as you lived in that house.



When my in-laws were still alive I helped them file the paperwork. This would have been late '90s/early 2000s.


Did the law change?

[LookingatFL]

To freeze your property taxes in Arizona, you need to:
Be 65 years or older.
Own and reside in the property as your primary residence.
Have resided in the residence for at least two years.
*** Have an annual income under $35,184 if one owner or under $43,980 if there are two or more owners (financial need)

[agorski]

AZ has an annual auto registration fee based on the value of the vehicle that goes down each year of ownership, unlike TX with a flat fee (when I lived there). So if you have a newer car you will pay more here.

[Parnassia]

Originally Posted by agorski

AZ has an annual auto registration fee based on the value of the vehicle that goes down each year of ownership, unlike TX with a flat fee (when I lived there). So if you have a newer car you will pay more here.

I guess this reply sorta fits the OP's question...but the tax break is based on the age of the CAR, not the owner! An 18 year old whipper snapper who owns a 20 year old car gets the same break a 70 year old with the same car does.

[texas7]

Thank you all.

[jlawrence01]

Originally Posted by agorski

AZ has an annual auto registration fee based on the value of the vehicle that goes down each year of ownership, unlike TX with a flat fee (when I lived there). So if you have a newer car you will pay more here.

And if you pay for five years, you will NOT have to pay any increases in license fees that might occur during that period.

[thinkalot]

If you are low income and spent no time in jail that year you get a $25 tax credit.

Long Term Care insurance premiums are deductible on state taxes.