You can’t retire in a place you can’t afford to live in. One of the many things that brings retirees to Prescott is the very low cost of living…
Some thoughts on the low cost of living here…
- State Income Taxes – Tax rate is 10% to 32% of your Federal Income Tax
- Income Exemptions – Social Security benefits and up to $2,500 on federal, Arizona state and local government pensions are exempt.
- Property Tax – Real property is accessed at the range of 1% – 1.5% of market value of owner occupied property. This includes State, County, Community Colleges, City and Schools. Property Tax Calculator – Here is a link to an online tax calculator you can use to estimate your property tax in Prescott…
- Property Tax Calculator Click Here
- Corporate Income Tax – Flat tax of 6.968%. The minimum amount collected by Arizona Corporate Income Tax is $50.00
- Sales Tax – Arizona has a general sales tax of 5.6%. Yavapai County has a .75% sales tax, and the City of Prescott has a 2% sales tax, for a total sales tax of 8.35%
- Homestead Exemption – Those who are disabled or whose spouse died while residing in Arizona can receive an exemption of $3,000 off assessed value. TO qualify, the full cash value of one’s home must be less that $203,860.
- Estate Tax – None
- Motor Vehicle Registration – Registration $8.00; Air Quality $1.50; Title Fee $4.00; Total Registration: $13.50
- Vehicle License Tax – In addition to title and registration fees, Arizona assesses a vehicle license tax in lieu of a personal property tax on all vehicles registered in the State. This is based on the manufacturer’s based retail price for the vehicle, when new, less depreciation. The value of the vehicle is decreased 40% the first year and 15% each year thereafter. You will be charged a rate of $4.00 per $100.00 of the vehicle’s taxable value in any year. This will decrease to a minimum annual charge of $10.00. Required to have an Arizona Standardized Insurance Card.
Here is a record of the recent utility expenses we’ve had in Prescott. Keep in mind that we live in a house that is about 3100 square feet, and we like to keep it COLD in the summer… Utility Expenses