Compare taxes and see how much you save moving from New York to Arizona
The ultimate retirement migration. Arizona's 2.5% flat rate is the lowest among all 41 states with income tax—a dramatic advantage over NYC's 12.7% combined rate. At $100,000: NYC $9,500 vs Arizona $2,500—save $7,000/year. Arizona's 2023 tax reform (down from 4.5%) made it the top destination for retirees and snowbirds escaping Northeast winters and taxes. Phoenix's semiconductor boom (Intel, TSMC) also attracts working-age migrants.
High Tax State
Progressive + NYC tax
Lowest Flat Tax
Lowest among income tax states
At $100,000 income:
That is $583/month back in your pocket!
| Income | NY Tax | AZ Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,850 (NY state only) | $1,250 | AZ saves $1,600 | $16,000 |
| $75,000 | $4,600 (NY state only) | $1,875 | AZ saves $2,725 | $27,250 |
| $100,000 (NYC) | $9,500 (state + city) | $2,500 | AZ saves $7,000 | $70,000 |
| $150,000 (NYC) | $14,300 (state + city) | $3,750 | AZ saves $10,550 | $105,500 |
| $200,000 (NYC) | $19,500 (state + city) | $5,000 | AZ saves $14,500 | $145,000 |
| $300,000 (NYC) | $32,000 (state + city) | $7,500 | AZ saves $24,500 | $245,000 |
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Moving from New York to Arizona? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →At $100,000 NYC income: save $7,000/year in income tax ($9,500 NYC combined → $2,500 AZ). Over 10 years: $70,000. At $200K: save $14,500/year. Arizona also exempts Social Security from state tax and offers property tax freezes for residents 65+, making it especially attractive for retirees.
Yes—among the 41 states that have any income tax, Arizona's 2.5% flat rate is the lowest. Only the 9 no-tax states (FL, TX, NV, WA, TN, WY, SD, AK, NH partial) have lower rates at 0%. Arizona achieved this through aggressive 2023 tax reform, dropping from a 4-bracket system (up to 4.5%) to a 2.5% flat rate.
Phoenix summers are brutal: 100-115°F for 4+ months. AC bills run $300-500/month June-September. Many snowbirds maintain dual residences, spending summers elsewhere. Scottsdale and mountain towns (Flagstaff, Sedona, Prescott) are 10-20°F cooler but have higher housing costs. If you can't handle extreme heat, Arizona's tax savings may not be worth it.
Growing rapidly. Intel's massive presence ($20B expansion), TSMC's $40B fab, and companies fleeing California have made Phoenix a semiconductor hub. Fintech and healthcare tech are also growing. However, Phoenix's tech scene is smaller than Austin or Seattle, and salaries are 15-20% lower than NYC. Many NYC→AZ moves involve remote work, keeping NYC salaries.
Scottsdale for luxury retirees—highest end, golf courses, spas, expensive ($750K+ median). Phoenix for jobs and affordability—largest metro, most employers, moderate housing ($450K median). Tucson for lower costs and college-town vibe—University of Arizona, cheapest major city ($350K median), 10°F cooler than Phoenix. All have the same 2.5% state tax rate.