Moving from Nebraska to Arizona: The Real Numbers
ClozeEZ, the for-sale-by-owner site, lays out the real numbers on moving from Nebraska to Arizona. The Nebraska-to-Arizona flow is small and essentially balanced: Census ACS 2024 shows 2,129 people moving to Arizona and 2,264 moving the other way, well within the margin of error. Arizona costs about 34% more for a home that is roughly 14% smaller. The reason people make this move anyway is property tax: Nebraska's 1.44% effective rate is three times Arizona's 0.48%, and it is the fourth highest in the nation.
Nebraska vs. Arizona at a glance
| Nebraska | Arizona | |
|---|---|---|
| Moved to Arizona (2024) | 2,129 people; 2,264 moved the other way | The flow is statistically flat |
| Median listing price | $349,000, median 2,172 sq ft | $467,000, median 1,861 sq ft |
| Income tax | 2.46%-4.55% (top rate falling to 3.99% in 2027) | 2.5% flat |
| Effective property tax | 1.44%, 4th highest in the US | 0.48% |
| Median property tax bill | $4,507 (Douglas County/Omaha) | $1,983 (Maricopa County) |
The property tax offset, with the math
At market medians, a Nebraska home of $349,000 at 1.44% carries about $5,026 a year in property tax. An Arizona home of $467,000 at 0.48% carries about $2,242. So the Arizona home costs $118,000 more and carries $2,784 a year less in property tax. Douglas County's median bill of $4,507 against Maricopa County's $1,983 tells the same story at the county level.
But run the whole payment before deciding. At roughly 6.65% on a 30-year fixed with 20% down, the Nebraska home's principal, interest, and property tax comes to about $2,211 a month against the Arizona home's $2,585. The lower property tax offsets roughly 38% of the higher mortgage payment; that is meaningful, but it does not erase it. The move works cleanly for someone buying at or near their current price point rather than trading up.
Two things Nebraska already does well
Nebraska fully exempts Social Security from state income tax as of 2024, and fully exempts military retirement pay as of 2022. Arizona does the same on both. So there is no retirement-income advantage to this move, and any page claiming one would be wrong. Nebraska's combined sales tax of 6.98% is also well below Arizona's 8.52%.
Nebraska's top income tax rate is falling fast, from 5.20% in 2025 to 4.55% in 2026 and a scheduled 3.99% in 2027, which narrows the income tax gap with Arizona each year.
Where Arizona does not win
The migration data does not support a Nebraska exodus; the flow is statistically flat and the raw numbers actually run slightly toward Nebraska. Arizona homes cost about 34% more for about 14% less space, Nebraska's sales tax is lower, and both states already exempt Social Security and military retirement. This move is about property tax and winter, and the property tax offset covers only part of the higher payment.
Nebraska to Arizona: frequently asked questions
How much lower are Arizona property taxes than Nebraska's?
Arizona's effective rate is 0.48% against Nebraska's 1.44%, the fourth highest in the nation. Douglas County's median bill of $4,507 compares with Maricopa County's $1,983, on a home worth substantially more in Arizona.
Does the property tax saving cover the higher home price?
Only partly. At market medians and roughly 6.65% financing, the Arizona home still costs about $374 a month more all in, with the lower property tax offsetting roughly 38% of the larger mortgage payment. The move pencils best for someone buying at their current price point rather than trading up.
Is Arizona better for retirement income than Nebraska?
No. Nebraska fully exempts Social Security (since 2024) and military retirement pay (since 2022), and Arizona does the same. There is no retirement-income tax advantage to this move; the gains are property tax and climate.
Are a lot of Nebraskans moving to Arizona?
No. Census ACS 2024 shows 2,129 moving to Arizona and 2,264 moving from Arizona to Nebraska, a difference well inside the margin of error. Arizona ranks eighth among destinations for Nebraska movers, and Nebraska ranks 31st among Arizona's origin states.