Side-by-side tax comparison between Arizona (2.5% top rate, flat) and Florida (no income tax). See which state lets you keep more at every salary level, and how cost of living changes the picture.
Florida has no state income tax, while Arizona uses a flat system with rates of 2.5% flat. On a $100K salary, this creates a state tax difference of $2,500/year that Florida residents simply don’t pay.
Arizona’s flat 2.5% rate means the gap scales linearly with income. At $200K, you’d save $5,000 by being in Florida instead.
Florida wins at 10 out of 10 salary levels tested. The advantage is consistent and significant across the income spectrum.
| Salary | Arizona | Florida | Difference | Winner |
|---|---|---|---|---|
| $40K | $33,320 | $34,320 | +$1,000 | Florida |
| $50K | $41,105 | $42,355 | +$1,250 | Florida |
| $60K | $48,890 | $50,390 | +$1,500 | Florida |
| $75K | $59,663 | $61,538 | +$1,875 | Florida |
| $100K | $76,625 | $79,125 | +$2,500 | Florida |
| $120K | $90,195 | $93,195 | +$3,000 | Florida |
| $150K | $110,001 | $113,751 | +$3,750 | Florida |
| $200K | $143,887 | $148,887 | +$5,000 | Florida |
| $250K | $177,014 | $183,264 | +$6,250 | Florida |
| $300K | $207,829 | $215,329 | +$7,500 | Florida |
Take-home pay only tells part of the story. Arizona has a cost of living index of 97 while Florida is at 100 (national average = 100).
With similar costs of living (97 vs 100), the tax difference is the primary factor. What you see in raw take-home pay is essentially what you get in purchasing power: $78,995 in Arizona vs $79,125 in Florida.
For a single earner at $100K filing jointly, take-home becomes $82,210 in Arizona and $84,710 in Florida \u2014 a difference of $2,500. The gap remains similar regardless of filing status.
On paper, moving from Arizona to Florida would save $2,500/year on a $100K salary, or $12,500 over 5 years. But relocation involves real costs: moving expenses, potentially buying/selling a home, changing jobs, and adjusting to a new community.
The $2,500/year savings is meaningful but probably not enough to justify a move on its own. However, combined with other factors like career growth, lifestyle preferences, or family proximity, it could tip the scale.