Anyone ever heard that there are no property taxes in Arizona after age 65?

[2HOTinPHX]

So while going through some comments on a recent YouTube video someone is insisting there are no property taxes in Arizona after age 65. I commented back I think he is incorrect. They replied back they are correct.
I do not find anything other than an option to defer property taxes or freeze the assessment value for three years at a time.
Am I missing something? Google and CHATGPT do not show anything regarding dismissing property taxes as commented.

 

[zinger1457]

I sure wish it was true. There is a deferral option as you mentioned. You can also freeze the valuation if your income is below a certain amount which is pretty low.

 

[2HOTinPHX]

I sure wish it was true. There is a deferral option as you mentioned. You can also freeze the valuation if your income is below a certain amount which is pretty low.

Thanks for the reply. Yes those are the only two options I could find. Deferring but will need to be paid with interest at a later date when you sell or pass away. Freeze the valuation but still need to pay the property taxes.
I too wish they were correct and asked them to provide details. Probably won't hear back.

 

[skipro33]

From Perplexity Pro AI, I asked your question; Are there property taxes in Arizona after age 65.
It told me that there are 3 instances that affect property taxes after age 65, but that none of them are zero property taxes. One comes close though. That one is referred to as a property tax postponement. You can put off paying property taxes until your home changes ownership. Like, if you die or if you move. In essence, you don't pay property taxes after 65, your heirs do out of your estate. I think other states have this on their books as well, not just Arizona, but I can't rightly recall.
The other two include; 1. property tax freeze after 65 but there are stipulations and they vary by county, including income level. 2. a refundable tax credit for seniors, but also income based. Around $35K single and $44K married couples.

NOTE: I understand that answers from an AI program are controlled by moderators, but I'm hoping that this reply provides some value for others to investigate their own situation based on these findings. I'm not trying to claim this as my own but phrased in my own words after reading the reply to my question.

 

[TheWizard]

At least it's nice that the top INCOME tax rate in Arizona is around 2%. I could live with that...

 

[RetiredHappy]

At least it's nice that the top INCOME tax rate in Arizona is around 2%. I could live with that...

2.5% to be precise. Pretty low!

 

[Koolau]

Many states have a wide array of taxes and it's important to understand the impact of all of them. Only tax bargain we have is low RE taxes. The rest of the taxes really add up.

 

[skyking1]

Many states have a wide array of taxes and it's important to understand the impact of all of them. Only tax bargain we have is low RE taxes. The rest of the taxes really add up.

It is indeed a complex thing to behold.
Our current property tax is pretty horrendous. The new place will be higher yet but it will be a better ratio when compared to the property value.
High sales tax, Fuel tax, but not state income tax.
It sets up a scenario that could favor renting vs owning a home or condo, for instance.

 

[RetiredHappy]

We do have an 8.375% sales tax but no state income tax in Nevada. Restaurant food prices are comparable to California's, so living here is not cheap. But our property tax is very low, so it is still cheaper to live here than in California. I haven't done a direct comparison to Scottsdale/Phoenix area, in which we travel annually to. I will pay attention to prices of food/restaurant when we head there again this year.

 

[Koolau]

We do have an 8.375% sales tax but no state income tax in Nevada. Restaurant food prices are comparable to California's, so living here is not cheap. But our property tax is very low, so it is still cheaper to live here than in California. I haven't done a direct comparison to Scottsdale/Phoenix area, in which we travel annually to. I will pay attention to prices of food/restaurant when we head there again this year.

I'm guessing your utilities are lower than in California as well but no personal experience with Nevada on that score. It's the total mix of expenses within a state that makes each state affordable or not.

 

[RetiredHappy]

I'm guessing your utilities are lower than in California as well but no personal experience with Nevada on that score. It's the total mix of expenses within a state that makes each state affordable or not.

Our utilities rates are comparable to California and our summers are hotter. My electricity bill is about $650 per month in the summer and my home is half the size of my former home in California and I was also paying about $650 a month then, before I put in solar. Solar brought my electricity bill down in my California home to about $2K a year. Putting in solar panels damaged the tiles of the roof in the California home and hence we have decided not to pursue it here.

 

[Sunset]

Illinois has 10% sales tax, 4.95% income tax, and the 2nd highest real estate tax in US. But at least we have........ nope nothing..

 

[Buckeye]

It is indeed a complex thing to behold.
Our current property tax is pretty horrendous. The new place will be higher yet but it will be a better ratio when compared to the property value.
High sales tax, Fuel tax, but not state income tax.
It sets up a scenario that could favor renting vs owning a home or condo, for instance.

I grew up in WA State and I've never figured out why WA hasn't voted in a property tax law like Save Our Homes in FL (rate of inflation or max 3% property valuation annual increase for owner-occupied dwellings with portability) or like Prop 13 in CA.

 

[Koolau]

I grew up in WA State and I've never figured out why WA hasn't voted in a property tax law like Save Our Homes in FL (rate of inflation or max 3% property valuation annual increase for owner-occupied dwellings with portability) or like Prop 13 in CA.

I know little about WA state except my son left there partly due to taxes. Having said that, states have to cover their costs. States are always a combo of what they offer and what they extract from citizens in taxes. Only you can decide if you are getting your money's worth.

 

[HarveyS]

Additional proof that you can find anything on the internet.

 

[sakowitzm]

Here in Prince William County, Virginia, you can get a full exemption from real estate tax if you meet certain criteria. Most notably, over 65, income under $113K, and net worth under $340K. Net worth excludes your home.

 

[MichaelB]

From Perplexity Pro AI, I asked your question; Are there property taxes in Arizona after age 65.
It told me that there are 3 instances that affect property taxes after age 65, but that none of them are zero property taxes. One comes close though. That one is referred to as a property tax postponement. You can put off paying property taxes until your home changes ownership. Like, if you die or if you move. In essence, you don't pay property taxes after 65, your heirs do out of your estate. I think other states have this on their books as well, not just Arizona, but I can't rightly recall.
The other two include; 1. property tax freeze after 65 but there are stipulations and they vary by county, including income level. 2. a refundable tax credit for seniors, but also income based. Around $35K single and $44K married couples.

NOTE: I understand that answers from an AI program are controlled by moderators, but I'm hoping that this reply provides some value for others to investigate their own situation based on these findings. I'm not trying to claim this as my own but phrased in my own words after reading the reply to my question.

Thanks. That’s exactly what the forum policy on AI strives for.

 

[Buckeye]

I know little about WA state except my son left there partly due to taxes. Having said that, states have to cover their costs. States are always a combo of what they offer and what they extract from citizens in taxes. Only you can decide if you are getting your money's worth.

I was considering those on fixed incomes being driven out of their homes because they can no longer afford to pay the property taxes on their homes. I'm not sure any level of services can compensate for having to leave the home you've lived in for 30 years because of your property tax bill. I think that's what drove the Save Our Homes relief in Florida although it does apply to every age.

 

[aja8888]

Illinois has 10% sales tax, 4.95% income tax, and the 2nd highest real estate tax in US. But at least we have........ nope nothing..

You have highways leading out of the state though!

 

[Trailwalker]

You have highways leading out of the state though!

Are you talking about the toll/tax roads? (coming and leaving Illinois)

 

[TheWizard]

I was considering those on fixed incomes being driven out of their homes...

I prefer to use the term LOW INCOME when that's the salient point.
It's possible to have a non-COLA pension of $100k+ per year which is a fixed income, but not especially low.

Also possible to have SS as your main income, but that increases with inflation most years, so not "fixed".

Carry on...

 

[Chuckanut]

Our utilities rates are comparable to California and our summers are hotter. My electricity bill is about $650 per month in the summer and my home is half the size of my former home in California and I was also paying about $650 a month then, before I put in solar. Solar brought my electricity bill down in my California home to about $2K a year. Putting in solar panels damaged the tiles of the roof in the California home and hence we have decided not to pursue it here.

Does solar always have to be on the main house roof? I have seen houses where a patio cover or carport is built and the solar array is on top of that roof. Even if it leaks, it won’t do much damage to anything below it.

If I had solar power, I would put it on the roof of my new carport or the new patio cover.

 

[2HOTinPHX]

Additional proof that you can find anything on the internet.

Not sure what you are referring to in this post?

 

[jazz4cash]

I grew up in WA State and I've never figured out why WA hasn't voted in a property tax law like Save Our Homes in FL (rate of inflation or max 3% property valuation annual increase for owner-occupied dwellings with portability) or like Prop 13 in CA.

If I am reading that correctly the FL law only protects against excessive increases due to inflation. Better than nothing I guess. We have something similar in my MD county call TRIM but they keep making exceptions.

 

[Koolau]

I was considering those on fixed incomes being driven out of their homes because they can no longer afford to pay the property taxes on their homes. I'm not sure any level of services can compensate for having to leave the home you've lived in for 30 years because of your property tax bill. I think that's what drove the Save Our Homes relief in Florida although it does apply to every age.

Yes, it's sad when fixed income people face increasing cost of all kinds of things from food to energy to RE taxes.

We are seeing the same "problem" here in the Islands except it has nothing to do with taxes. Insurance is driving people out. The good news is that our RE taxes are relatively low.

When you are on the edge, there is always something that threatens your ability to afford the housing you've lived in for years. I don't know the answer. If a law is passed to limit tax increases on the elderly, the expenses that those taxes cover don't go down. Who pays?