Florida has no state income tax (0%), while Arizona charges progressive rates from 2.5% to 4.5%. Moving from Arizona to Florida saves $4,000/year on $100k income. However, Arizona has much lower property taxes (0.60% vs FL's 0.98%) and Florida has higher property insurance ($4-8k/year for coastal areas vs AZ's minimal risk). Both states are popular retirement destinations with no tax on Social Security. Choose based on beaches vs desert lifestyle.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🌴 Florida

0%

No Income Tax

Constitutional prohibition

🌵 Arizona

2.5-4.5%

Progressive

3 brackets, up to 4.5%

Typical Annual Savings

At $100,000 income:

$4,000

That is $333/month back in your pocket!

Tax Savings by Income Level

IncomeFL TaxAZ TaxSavings10-Year
$50,000 $0$1,750$1,750$17,500
$100,000 $0$4,000$4,000$40,000
$200,000 $0$8,500$8,500$85,000
$500,000 $0$22,000$22,000$220,000
💡

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Florida Pros and Cons

✅ Pros

  • Zero income tax: Save $4,000/year on $100k, $22,000 on $500k
  • Beaches: 1,350 miles Atlantic/Gulf coastline (vs AZ desert)
  • No retirement tax: $0 on Social Security, pensions, withdrawals
  • Cruise access: Miami/Port Canaveral for Caribbean cruises
  • International culture: Miami gateway to Latin America

❌ Cons

  • Higher property tax: 0.98% (vs AZ 0.60%) costs $950-$3,800 more/year
  • Hurricane risk: Sept-Nov Category 4+ storms (vs AZ no hurricanes)
  • Insurance crisis: $4-8k/year coastal homeowner insurance (vs AZ $1-2k)
  • Very humid: 70-90% humidity (vs AZ dry 10-30%)
  • Higher sales tax: 7.01% (vs AZ 8.37%)—actually AZ is higher

Arizona Pros and Cons

✅ Pros

  • Lower property tax: 0.60% (11th lowest in US) saves $950-$3,800/year
  • Dry heat: 10-30% humidity (vs FL muggy 70-90%)
  • No hurricanes: No storm risk (FL has hurricane season)
  • Outdoor recreation: Grand Canyon, Sedona, hiking, desert landscapes
  • Lower insurance: $1-2k/year homeowner insurance (vs FL $4-8k)

❌ Cons

  • Income tax: 2.5-4.5% progressive costs $4,000 on $100k, $22,000 on $500k
  • Higher sales tax: 8.37% (Phoenix/Tucson 8.6-8.7% vs FL 7.0%)
  • No beaches: Desert state (vs FL 1,350 miles coastline)
  • Very hot: 105°F+ summers (similar to FL but drier)
  • Desert landscape: Lacks FL's greenery and water access

Frequently Asked Questions

Q: How much will I save moving from Arizona to Florida?

On $100,000 income, Florida saves $4,000/year (AZ ~4% effective vs FL 0%). Over 10 years: $40,000. On $500,000 income: $22,000/year ($220,000 over 10 years). However, Florida property tax is higher (0.98% vs AZ 0.60%). On a $600k home, FL pays $5,880/year vs AZ $3,600/year—difference of $2,280/year. The big wildcard: FL hurricane insurance ($4-8k/year coastal) vs AZ ($1-2k). For homeowners, these costs can offset income tax savings.

Q: What about Florida's insurance crisis?

Very real. Florida homeowner insurance averages $4-6k statewide, $8k+ in coastal areas post-Hurricane Ian. Some carriers have left entirely. Arizona averages $1-2k (no hurricane risk). This $3-7k annual difference can significantly reduce FL's income tax advantage for coastal homeowners. Renters aren't affected by homeowner insurance, so they benefit fully from FL's zero income tax.

Q: Which state is better for retirees?

Both excellent for retirees: no income tax on Social Security/pensions in either state (AZ has income tax but exempts retirement income). Florida wins on: zero income tax on ALL income, beaches, cruise access. Arizona wins on: lower property tax (0.60% vs 0.98%), dry heat (no humidity), no hurricanes, lower insurance. Choose FL for beaches/humidity tolerance. Choose AZ for dry heat/outdoor activities.

Q: Is there significant migration between the two states?

Yes, Florida has net positive migration from Arizona. In 2023, 18,347 moved AZ → FL (vs 14,829 FL → AZ), net gain of 3,518 for Florida. Migration drivers AZ → FL: beaches/coastal lifestyle, zero income tax, cruise access. Migration drivers FL → AZ: escaping humidity/hurricanes, dry heat, lower property tax/insurance. Both states gain heavily from CA/NY/IL.

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