images/tax_burden_web_2.jpg

 

MOHAVE COUNTY – The following information was provided by SmartAsset, www.smartasset.com, a financial technology company aiming to provide the best personal finance advice on the web. The site offers free and personalized tools to empower you to make smart personal finance decisions around home buying, retirement, taxes and more.

Three takeaways:

  • The tax burden in Mohave County is ranked fourth lowest out of the 15 counties in Arizona.
  • The sales tax in Mohave County is fairly low, but Kingman’s new rate effective last November has not been calculated.
  • Property tax in Arizona on average is ranked the 15th lowest in the nation. There is no property tax levied by the city of Kingman.

Tax season is in full swing and SmartAsset has released its fourth annual study on the Places with the Lowest Tax Burdens. We calculated the amount of money a person would pay in income, sales, property and fuel taxes in each county in Arizona.

Below is a list of the top counties in Arizona:

Rank

County

Income Tax

Sales Tax

Property Tax

Fuel Tax

Tax Burden Index

1

Greenlee, AZ

$9,673

$989

$346

$286

81.52

2

Apache, AZ

$9,673

$989

$558

$171

80.71

3

Graham, AZ

$9,673

$989

$801

$215

78.35

4

Mohave, AZ

$9,673

$949

$876

$231

77.93

5

La Paz, AZ

$9,673

$1,232

$765

$203

76.74

6

Yuma, AZ

$9,673

$1,088

$985

$261

75.63

7

Navajo, AZ

$9,673

$1,313

$843

$192

75.51

8

Santa Cruz, AZ

$9,673

$1,070

$1,189

$269

74.04

9

Yavapai, AZ

$9,673

$1,030

$1,310

$251

73.52

10

Cochise, AZ

$9,673

$1,394

$1,129

$251

72.00

 

AZ

$9,673

$1,169

$1,049

$246

 
 

Arizona state tax quick facts

  • Income tax: 2.59% - 4.54%
  • Sales tax: 5.85% - 10.9%
  • Property tax: 0.81% average effective rate
  • Gas tax: 19 cents per gallon of regular gasoline, 27 cents per gallon of diesel (19 cents for light or exempt vehicles)

Arizona has been one of the five fastest growing states this decade, so have low taxes played a role in drawing people to the desert? Among U.S. states, Arizona has below-average income and property tax rates, and it has the 7th lowest gas tax rate in the nation. On the other hand, when considering both statewide and local taxes, the Grand Canyon state has the ninth highest sales tax rate in the country. In all, the effect of Arizona’s tax system varies depending on your specific financial circumstances. Below, we’ll take a closer look at the numbers to see how taxes in Arizona might affect you.

Arizona Income Tax

Like the federal income tax, Arizona’s state income tax has rates based on income brackets. The rates range from 2.59% to 4.54%, with higher brackets paying higher rates. The table below shows the tax brackets for Arizona taxpayers.

Arizona Taxable Income

Rate

$0 - $10,179

2.59%

$10,179 - $25,445

2.88%

$25,445 - $50,890

3.36%

$50,890 - $152,668

4.24%

$152,668+

4.54%

Those rates apply to Arizona taxable income. The starting point for computing Arizona taxable income is federal adjusted gross income (AGI). From there, there are a number of subtractions and additions made to calculate taxable income. For example, interest income from non-Arizona municipal bonds is taxable, and must be added to taxable income.

For the most part, however, calculating taxable income is a matter of subtracting deductions and exemptions from gross income. Itemized deductions in Arizona track very closely to federal itemized deductions. If you choose not to itemize on your Arizona tax return, you can claim the Arizona standard deduction, which is $4,945 for single filers and $9,883 for joint filers and heads of household.

In addition to the standard deduction, taxpayers in Arizona are also eligible for the state’s personal exemption of $2,100 (double that amount for joint filers). Additional exemptions of $2,300 may be made for dependents. Filing your return can be a rigorous task, but tax preparation software like TurboTax and TaxAct can save you time and money.

Arizona Sales Tax

If you need to buy some sunscreen, sunglasses or an air conditioner while you’re staying or living in Arizona, you’ll have to pay state and local sales taxes. While the statewide rate is 5.3%, local rates range from 0.25% to as much as 5.1%. When taking all those local taxes into account, the state’s average rate is 8.17%, ninth highest in the nation. The table below shows the combined state and county taxes for every county and the combined state, county and city sales tax rates for the largest cities in Arizona.

Sales Tax Rates (Updated October 2017)

County

State Rate

County Rate

Total Sales Tax

Apache

5.60%

0.500%

6.100%

Cochise

5.60%

0.500%

6.100%

Coconino

5.60%

1.300%

6.900%

Gila

5.60%

1.000%

6.600%

Graham

5.60%

1.000%

6.600%

Greenlee

5.60%

0.500%

6.100%

La Paz

5.60%

2.000%

7.600%

Maricopa

5.60%

0.700%

6.300%

Mohave

5.60%

0.250%

5.850%

Navajo

5.60%

0.500%

6.100%

Pima

5.60%

0.500%

6.100%

Pinal

5.60%

1.100%

6.700%

Santa Cruz

5.60%

1.000%

6.600%

Yavapai

5.60%

0.750%

6.350%

Yuma

5.60%

1.112%

6.712%

While most products purchased in the state will be subject to those rates, some items are exempt. Among the items exempt from sales tax in Arizona are: groceries, internet subscriptions, prescription drugs and professional or personal services.

Arizona Property Tax

On average, homeowners in Arizona pay $1,356 per year in property taxes, the 15th lowest amount nationally. Likewise, the average effective property tax rate (total taxes paid as a percentage of home value) is 19th lowest in the U.S, at 0.81%. That rate varies somewhat between cities and counties, but no county in Arizona has an effective property tax rate higher than 1.1%, which is the U.S. average.

Arizona’s sales tax may be on the higher side, but their property taxes are among the lowest in the nation. If you’re looking to refinance or relocate to Arizona, take a look at our guide to Arizona mortgage rates and getting a mortgage in the state.

Calculate Your Property Taxes: Arizona Property Tax Calculator

Arizona Tobacco Tax

Arizona has the 12th highest tax on cigarettes in the country. The tax costs $2.00 per pack of 20 cigarettes.

Arizona Estate Tax

As of January 2005, there is no estate tax in Arizona.

Arizona Alcohol Tax

Arizona collects excise taxes on alcoholic beverages, depending on the type of product being sold. The tax is equal to $3.00 per gallon of liquor, 84 cents per gallon of wine or 16 cents per gallon of beer.

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

Tax BurdenIncome TaxSales TaxProperty TaxFuel Tax

Worse

Better

Rank

County

Income Tax

Sales Tax

Property Tax

Fuel Tax

Fuel Tax Index

1

Northwest Arctic, AK

$8,550

$996

$1,750

$32

95.43

2

New York, NY

$11,713

$1,376

$7,641

$43

93.87

3

Bethel, AK

$8,550

$996

$1,290

$47

93.25

4

Lake and Peninsula, AK

$8,550

$0

$1,125

$50

92.89

5

Nome, AK

$8,550

$0

$1,734

$53

92.44

6

Yukon Koyukuk, AK

$8,550

$0

$450

$54

92.28

7

North Slope, AK

$8,550

$0

$2,108

$70

89.96

8

Dillingham, AK

$8,550

$996

$2,616

$81

88.33

 

Nationwide

$10,288

$1,054

$1,427

$369

 

Methodology

Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.

For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to rank the counties to calculate a total tax burden.

Sources: US Census Bureau 2016 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset

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