Arizona vs. High-Tax States: Keep Your Money, Live Your Life
Let’s get real. Taxes aren’t just numbers—they’re lifestyle decisions. Where you live can either drain your wallet or free you to enjoy the life you’ve worked for. If you’re in the market for luxury living, Arizona isn’t just smart—it’s strategic.
Here’s why high-net-worth individuals are making the move from California, Illinois, and New York.
Property Taxes: More Money, More Freedom
Owning a $3 million home in Arizona? Expect about $12,300/year in property taxes.
Compare that to:
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California: $21,300
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Illinois: $54,900
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New York: $37,800
That difference isn’t just numbers—it’s more cash for private golf memberships, luxury travel, and weekend escapes. Arizona lets you enjoy your estate without your taxes eating the lifestyle you’ve earned.
Income Taxes: Keep More of What You Earn
High earners pay attention here:
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Arizona: 2.5%
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California: 13.3%
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Illinois: 4.95%
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New York: 10.9%
In Arizona, you keep more of your income—and that’s money you can spend on experiences: skiing in Aspen, a wine-country weekend, or a private jet trip to Europe.
Mansion Taxes: Luxury Without the Extra Bite
Luxury estates deserve luxury treatment, not surprise taxes:
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Arizona: None
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California: 4–5.5% in select markets
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Illinois: None
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New York: 1–3.25%
No mansion tax in Arizona means your $3 million—or $10 million—home is yours to enjoy, not a hidden revenue stream for the state.
Exit Taxes: Move Freely, Live Fully
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Arizona: None
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California: Proposed 0.4% on net worth >$30 million
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Illinois: None
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New York: None
Arizona gives you freedom to move, invest, and travel without penalties. Winter in Scottsdale, spring in Europe, summer in Aspen—your life, your rules.
Estate & Inheritance Taxes: Protect Your Legacy
You’ve worked hard to build wealth. Arizona ensures your legacy isn’t eaten by state taxes:
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Arizona: No estate or inheritance tax
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California: Federal estate tax only
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Illinois: Up to 16%
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New York: Up to 16%
That means your heirs get more of what you’ve built, not what the state claims.
Lifestyle Benefits: Golf, Travel, and More
Lower taxes don’t just save you money—they unlock a luxury lifestyle:
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Private Golf Memberships: Scottsdale and Paradise Valley are home to world-class courses like Troon North, Desert Mountain, and Grayhawk. Play where the elite play.
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Travel Freedom: More disposable income lets you hit Aspen for skiing, Napa for wine, or international escapes without blinking.
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Invest in Experiences, Not Taxes: Fine dining, curated home upgrades, luxury cars, and family adventures—Arizona makes it all doable.
Quick Tax Snapshot: $3 Million Home
| Tax Type | Arizona | California | Illinois | New York |
|---|---|---|---|---|
| Property Tax | $12,300 | $21,300 | $54,900 | $37,800 |
| Income Tax | 2.59–4.50% | 1–13.3% | 4.95% | 4–10.9% |
| Mansion Tax | None | 4–5.5% | None | 1–3.25% |
| Exit Tax | None | Proposed 0.4% | None | None |
| Estate/Inheritance Tax | None | Federal only | Up to 16% | Up to 16% |
Bottom Line: Arizona Wins
Taxes aren’t just numbers—they’re the difference between living and thriving. Arizona offers:
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Lower property and income taxes
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No mansion, exit, or inheritance taxes
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Access to world-class golf, luxury travel, and lifestyle freedom
Your home isn’t just an investment—it’s your lifestyle hub. And in Arizona, your money works as hard as you do, letting you live bigger, smarter, and freer. Contact us if you're interested in learning more about living the AZ lifestyle!
