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Common taxes in Arizona

tax computation

There are few things that are completely unavoidable in life, and taxes are one of them. Taxes can be confusing, but it is important to have a good idea of local state taxes whenever you move somewhere new. Many residents continue to move to Arizona cities due to the high livability, and Scottsdale AZ real estate tends to be incredibly popular. With many fantastic nearby amenities, and tons of green spaces, it is no wonder that residents continue to flock to the state. For anyone considering a move, it is vital to have the correct knowledge of taxes. Below, you can learn more about the most common taxes in Arizona.

Sales Tax

Every county in Arizona has a sales tax. This applies to most products but it does exclude food used for home consumption and prescribed medication. Additionally, municipalities within Arizona counties can add further transaction and sales taxes.

Property Taxes

Those looking for homes in San Tan Valley, and other cities in Arizona, will need to have a clear idea about property taxes. One thing to note about Arizona, is that property taxes are handled directly by the county, and funds are allocated to the local county. Property taxes are required for all types of personal property which can include commercial, residential, industrial, and agricultural property.

For owner-occupied properties, an assessment is made by a county tax assessor. They will make an objective analysis that will conclude how much property tax is owed. Property taxes are usually due on October 1st. Half can be paid on this date, and the other half of the tax can be paid by March 1st of the next year.

Vehicle Tax

Arizona has an annual vehicle license tax. The figure is 60% of the assessed manufacturer value of a vehicle. However, this is reduced by 16.25% for every year that the vehicle has been registered in Arizona.

Inheritance Tax

Those looking to pass on their savings to loved ones will be glad to know that there is no inheritance tax in Arizona. Any estate for individuals who died after 2004 is not subject to tax. Furthermore, there are no inheritance or gift taxes.

Filing Taxes in Arizona

In recent years, it has become possible for Arizona residents to file their taxes online. A variety of payment methods are accepted that include e-check, credit-card, and debit card. These methods are available to those that file online, and also those that choose to file through the paper route. The state offers tax credits for renewable energy if it is produced by a qualified generator. This can be a fantastic way to save money on your home bills.

You will now have a much clearer idea of the most common taxes imposed in Arizona. The simplistic tax system in the state makes it highly desirable for long-term living. If you’re thinking of making the move, then you may be interested in houses for sale in Scottsdale AZ. Aeris House Properties can give you a helping hand to find your ideal property, and we can explain the aspects of property tax clearly. Call us at 602.466.9771 or send us an email at Info(at)AerisHouse(dotted)com.