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Finance

Arizonans pay low property taxes, but stuck with high car registration fees, new report says

Arizonans have long enjoyed low property taxes in the country, but they are making up for it with some of the highest vehicle license taxes in the U.S., according to a new report.

The state has the 12th-lowest property tax rate in the U.S., according to review by financial website WalletHub, clocking in at an effective rate of 0.63% or roughly $1,499 for a median value home of about $225,000.

But Arizona ranks 38th in terms of vehicle license taxes - the charges paid to the state to register a car - at 1.68% of a car's value. That means for a car costing $25,000, it would amount to $425, according to the review.

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Finance

Arizonans pay low property taxes, but stuck with high car registration fees, new report says

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Arizonans have long enjoyed low property taxes in the country, but they are making up for it with some of the highest vehicle license taxes in the U.S., according to a new report.

The state has the 12th-lowest property tax rate in the U.S., according to review by financial website WalletHub, clocking in at an effective rate of 0.63% or roughly $1,499 for a median value home of about $225,000.

But Arizona ranks 38th in terms of vehicle license taxes - the charges paid to the state to register a car - at 1.68% of a car's value. That means for a car costing $25,000, it would amount to $425, according to the review.

The review looked at the highest and lowest property tax and vehicle taxes in each state to determine the ranking, using the median home value in the U.S. of $217,500 and the car priced based on a 2021 Toyota Camry LE four-door sedan, the highest selling car last year.

Arizona residents and car owners have seen a bump in what they're paying in taxes thanks to huge increases in home and vehicle prices. A report from auto industry firm Edmonds stated that 80% of car buyers in January spent more than the manufacturers suggested retail price.

For a complete look at the WalletHub report, click here.

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