Arizona ranks in the top 10 states that have gained population, and many of those new residents are retirees. The climate is warm and dry, and the lifestyle is easy.
But before you pack up the moving van, here are some things — good and bad — that you might want to consider before moving to the state. Being well-informed now may help you avoid wasting money later.
Eliminate your late tax debt
Each year, the IRS forgives millions in unpaid taxes. If you have more than $10,000 in tax debt, or have 3+ years of unfiled taxes, you could get forgiveness too. You might be eligible to lower the amount you owe, or eliminate your tax debt completely.
Easy Tax Relief could help you lower or get out of your tax debt for good. They’re well respected in the industry and have been recognized for their ethical standards when dealing with tax debt. While most tax companies just put you on a payment plan and file your taxes for you, Easy Tax Relief talks to the IRS directly. They can help you pay off your tax debt faster while potentially reducing what you owe.
Important: Not everyone will qualify. To take advantage of this special program you must owe more than $10,000 in past-due taxes.
There are plenty of retirees in Arizona
One of the biggest reasons people are moving to Arizona is because they 'e retiring. So you won’t be alone when you move to the state to start your post-work life.
In fact, 34.5% of people surveyed by moving company United Van Lines said retirement was the main reason for their move to Arizona, beating out family needs or job changes.
It doesn’t tax Social Security
You may want to consider Arizona for retirement because the state doesn’t tax Social Security income.
However, you will want to factor in other taxes when considering whether to move to Arizona. You might have to pay state income taxes, which could include income from your 401(k) retirement account and property taxes.
Arizona also has a 5.6% state sales tax and an average local sales tax of 2.77%, bumping total sales tax to around 8.37%. That sales tax puts it at the higher end of sales tax rates in the U.S.
Housing prices are coming down
Housing prices are lowering over time, with a median sale price of $429,900 for the state in February. That’s still at the higher end of costs, but it’s lower than two years ago in the state, according to the real estate website Redfin.
And cities are relatively in line with the state average if you’re concerned about higher living costs in more populated areas.
For example, Phoenix had a median sale price of $444,762, while Tempe had a median price of $455,000 in February.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 15 months from account opening on purchases and qualifying balance transfers (then 20.24%, 25.24%, or 29.99% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
It’s hot, but it’s a dry heat
Arizona can get hot, particularly in the summer, with temperatures above 100 degrees many days. But those temperatures can vary depending on where you live.
For example, Phoenix has an average high temperature of 106 degrees in July, while Flagstaff, at an elevation of 6,909 feet, has an average high of 80 degrees that month.
But Arizona doesn’t have much humidity, which can make those hotter days a little more pleasant and less muggy. Florida, on the other hand, can have high humidity every day from June to August.
Retirees can find plenty of activities
Arizona can be a great state if you want to be active in retirement.
The state is well known for Grand Canyon National Park, which is good for a short trip to see this natural wonder. You can also spend several days hiking, camping, or participating in other outdoor activities.
And there are plenty of golf courses to check out if you prefer to play golf. Arizona is home to more than 300 courses for you to choose from.
You’ll need a car
Arizona is not like living in Chicago or New York when it comes to public transportation. There is some public transportation, but not enough to be able to rely on it to get you from place to place.
Instead, you’ll have to rely on your car to get to most places, mainly because of the sprawl of some of the bigger cities. So factor in the costs to own and maintain a car when you put together your estimated retirement budget if you decide to move to Arizona.
Arizona has a thriving art scene
Arizona may be the place for you if you plan to pursue art as a hobby or side hustle when you retire. The state has plenty of options to display your wares depending on where you settle down.
In fact, with so many retirees, you may want to consider finding a 55+ community in Arizona with space dedicated to your arts and crafts plans.
There’s a water shortage
One of the most significant issues facing Arizona right now is a drought, which is causing problems with the water supply in the state.
You have to drink more water when you live there because you’re in the desert. But the water shortage can also affect issues such as owning a pool or the kind of landscaping you choose.
Many communities require plants that require little to no water or have restricted hours when you can water your landscape.
Arizona has a diverse population
Consider moving to Arizona if you like the idea of living among a diverse group of people. The state has a large Spanish-speaking population, with almost 20% of residents speaking Spanish.
It also has a rich Native American heritage with a large population of Native American tribes, including the Navajo Nation and Hopi Tribe.
Take advantage of historically high rates to grow your wealth
Are your savings just sitting around, not earning much interest? It's time to make a change and put your money to work for you! With CloudBank 24/7, you can earn more interest on your money today ... while keeping your cash OUT of the stock market.
Here’s their secret: CloudBank 24/7 amplifies your money by doing what many banks refuse to do … paying you a rare 5.24% APY (annual percentage yield)12 on your cash.
When you deposit your money into this high-yield savings account, you can supercharge your emergency fund, short-term savings, return on cash, and more with interest income generated from their high 5.24% APY payout.
The best part? There are no fees, you can withdraw your money at any time, and opening an account takes as little as 3 minutes. CloudBank 24/7 is FDIC-insured through Third Coast Bank SSB and cybersecurity is a top priority, ensuring your data is kept safe.
You have to deal with dust
Arizona is a wonderful option if you have seasonal allergies in a state with seasons. But Arizona has its own weather problems: haboobs.
A haboob is a dust storm that sweeps across the desert and occurs frequently in Arizona. While you may not be sneezing and coughing in the spring due to pollen, you may have to learn to live with dust and sand suddenly enveloping your neighborhood.
Bottom line
Before you start thinking about where you want to live when you retire, you should figure out how much you’ll need to retire. Then it would be best if you compared the cost of living where you currently live versus your desired location in Arizona.
You may be surprised by a change in the cost of living if you leave your current location for somewhere else.
And if you find you can retire early, be sure your savings will cover a longer retirement.
FinanceBuzz is not an investment advisor. This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn 2% cash rewards on purchases
Benefits
- $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Earn unlimited 2% cash rewards on purchases
- Intro APR on purchases and qualifying balance transfers
- $0 annual fee
Drawbacks
- Has foreign transaction fee
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.