California and Arizona compared in one table
Home values and rents below are Zillow's September 2026 figures. Effective property tax rates come from the Tax Foundation's 2024 county data. The insurance row is the NAIC's 2022 state average for an owner's HO-3 policy.
| Measure | California | Arizona |
|---|---|---|
| Zillow typical home value, Sept 2026 | $761,538 | $416,733 |
| Value change, past year | +0.6% | -1.0% |
| Value change, past ten years | +72.0% | +87.3% |
| Income tax | Graduated, 1% to 13.3% | Flat 2.5% |
| State sales tax | 7.25% plus district taxes | 5.6% state transaction privilege tax plus county and city rates |
| Effective property tax rate (2024) | 0.67% Los Angeles County, 0.76% Sacramento County | 0.44% Maricopa County, 0.70% Pima County |
| Average homeowners premium, 2022 | $1,492 | $1,018 |
| Unemployment rate, Sept 2026 | 5.1% | 4.9% |
Arizona is cheaper on nearly every line: homes, income tax, property tax and insurance. The things it does not offer are the coast, the mild coastal summer and California's job and pay levels in some fields.
Arizona vs California by factor
Home values: Arizona has come down from its peak
Zillow's typical Arizona home value was $416,733 in September 2026, about 55% of California's $761,538. Arizona peaked at $461,573 in July 2022 and is now about 9.7% below that peak, a bigger pullback than California's. Over five years Arizona values were up only 6.9%, so buyers today pay roughly what buyers paid in 2021.
Phoenix, Scottsdale, Mesa and Tucson prices
Zillow's typical value was $404,067 in Phoenix, $428,871 in Mesa and $318,760 in Tucson. Scottsdale is the expensive exception at $851,746, only about 8% below Los Angeles' $927,891. Scottsdale was also the one large Arizona city that rose over the year, up 3.4%, while Phoenix slipped 1.2% and Tucson 1.9%.
Tucson vs Phoenix for California buyers
Tucson is the lower-cost choice of Arizona's two big metros. Zillow's typical Tucson value of $318,760 is about $85,000 below Phoenix, though Tucson rents rose faster, up 14.6% over five years against 5.3% in Phoenix. Pima County, which includes Tucson, had a higher effective property tax rate than Maricopa in the Tax Foundation's 2024 data, 0.70% against 0.44%, with a median bill of $2,272. Over ten years, values in Phoenix (+90.5%), Mesa (+90.8%) and Tucson (+83.8%) all grew faster than in Los Angeles (+73.2%), so the gap with California was once wider than it is now.
Monthly cost of buying
Put 20% down on Arizona's typical value and borrow $333,386 at Freddie Mac's 7.24% average for the week of October 29, 2026: principal and interest are about $2,272 a month. California's typical value needs about $4,152 a month on the same terms. The roughly $1,880 difference is before Arizona's lower property tax and insurance widen it further.
Rent in Arizona vs California
Zillow's observed rent in September 2026 was $1,571 in Phoenix, $1,532 in Mesa, $1,428 in Tucson and $2,114 in Scottsdale. That compares with $2,772 in Los Angeles, $3,004 in San Diego and $2,045 in Sacramento. Phoenix rents rose only 5.3% over five years, so a year of renting while you learn the metro is affordable.
Arizona's flat 2.5% income tax
Arizona taxes individual income at a flat 2.5%, a rate the Department of Revenue has applied since tax year 2023. California's graduated rates run from 1% to 12.3%, plus 1% on income over $1 million. Unlike Texas, Nevada or Florida, Arizona does tax income, but at a rate that is low for most California earners.
Property tax and the 5% limited value cap
Arizona's constitution (Article 9, Section 18, as amended by Proposition 117 in 2012) values property for tax at the lesser of its full cash value or 5% more than the prior year's value, from tax year 2015. The same section limits the main residential levy to 1% of that value, before bonds and special districts. California's Proposition 13 caps assessed value growth at 2% but resets it to market on every sale. The result in the Tax Foundation's 2024 data: Maricopa County's effective rate was 0.44%, with a median bill of $1,983, against 0.67% and $5,675 in Los Angeles County. Ask the county assessor to classify the home as your primary residence. For the California side, see our California property tax guide.
Sales tax and transfer costs
Arizona's state transaction privilege tax is 5.6%, and counties and cities add their own rates, so the total depends on where you shop. Arizona's constitution bars any new tax on the sale or transfer of real property that did not exist on December 31, 2007. County recorders collect a $2 fee on each deed or contract for a sale. California counties and some cities charge documentary transfer tax; our transfer tax guide lists the rules.
Insurance in Arizona
Arizona's average homeowners premium was $1,018 in 2022, ranked 45th, against $1,492 in California and $1,569 nationally, per NAIC data published by the Insurance Information Institute. Arizona does have wildfire country in its higher elevations and monsoon storm and flood risk, so quote the specific address. In California, wildfire exposure can limit which insurers will write a policy; see our FAIR Plan guide.
Jobs in Phoenix and California metros
The Bureau of Labor Statistics reported preliminary September 2026 unemployment rates of 4.9% for Arizona and 5.1% for California. For the Phoenix-Mesa-Chandler metro the rate was 4.2%, against 4.4% in the Los Angeles metro and 4.7% in the San Diego metro (not seasonally adjusted).
Heat and water
Phoenix and Tucson summers are far hotter than coastal California's, and air conditioning is a large share of summer utility bills; ask the seller for 12 months of electric bills. Water supply is a planning issue in central Arizona, so ask the city or water provider who serves the address. California buyers face drought rules too, but the bigger California check is the CAL FIRE hazard zone; see our wildfire zones guide.
Moves between California and Arizona
Arizona is the third most common destination for people leaving California. The Census Bureau's 2024 American Community Survey estimated that about 52,383 people moved from California to Arizona in a year (margin of error about 6,900), and about 28,174 moved from Arizona to California. Arizona was also the second largest source of domestic movers into California after Texas, so the traffic runs both ways. Our moving out of California guide covers the selling side.
Before you leave California
What happens to your Prop 13 base
Your California assessed value stays with the California home. Proposition 19 lets owners 55 or older, or severely disabled, transfer a base year value only to a replacement home inside California, so it cannot follow you to Arizona. Read our Prop 19 guide if a move within California could make more sense.
Tax on the California sale
The federal exclusion covers up to $250,000 of gain, or $500,000 for married couples filing jointly, if you owned and lived in the home for two of the past five years. California taxes gain above that as ordinary income, and Arizona's 2.5% rate does not replace California's claim on a California home. See capital gains on a California home sale.
Arizona driver license and registration
Arizona's Motor Vehicle Division says you must get an Arizona license and register your vehicle immediately once any residency trigger applies, such as taking a job in Arizona, registering to vote there or staying seven months or more in a calendar year. There is no grace period like Texas's 90 days.
Arizona vs California decision checklist
- Compare a real listing in each state on the full monthly cost, including HOA dues, which many Arizona subdivisions charge.
- Get the past year of utility bills for any Arizona home you are serious about.
- Check the water provider and any flood or wildfire risk for the address.
- Run your income through Arizona's 2.5% rate and California's brackets with a tax preparer.
- Use our cost of living in California guide for the California baseline.