Why are high-tax state buyers relocating to Arizona?

High-income buyers are relocating to Arizona for lower state income taxes, a more favorable cost of living, better business conditions, and access to larger luxury homes at more attractive price points. Scottsdale and Paradise Valley are especially popular for their privacy, amenities, and investment resilience.

What tax advantages does Arizona offer compared to California and New York?

Arizona offers a top state income tax rate of just 2.5%, significantly lower property taxes, and no inheritance tax. This tax structure can save high-income earners $50,000–$200,000+ per year compared to states like California and New York.

Is Arizona a good place for luxury real estate investment?

Yes. Scottsdale, Paradise Valley, and select East Valley communities provide strong long-term appreciation, continued demand from out-of-state buyers, and stable luxury pricing supported by lifestyle amenities, limited inventory, and significant wealth migration trends.

Which Arizona luxury neighborhoods are best for relocating buyers?

Top luxury destinations include Paradise Valley for privacy and Camelback views, North Scottsdale for modern luxury and golf communities, and Arcadia/Biltmore for charm and proximity to dining and downtown Phoenix. Each area offers unique benefits for relocating families and executives.

Why are tech and finance professionals moving to Arizona?

Arizona has become a top destination for corporate migration due to business-friendly policies, expanding tech corridors, and new corporate campuses in Scottsdale and Tempe. Remote executives also appreciate the lifestyle benefits, privacy, and lower tax burden.

How does The Murphy Group help relocation buyers?

The Murphy Group offers luxury relocation services including curated home tours, tax and trust coordination, private introductions to clubs and schools, and personalized strategy around buy/sell timing. They specialize in guiding high-income families transitioning from high-tax states into Arizona’s luxury markets.

Published November 21, 2025

Arizona Relocation Guide / Why High-Tax State Buyers Are Choosing Arizona

Written by Mary Murphy

Blog header image showing a luxury Arizona desert landscape at sunset with Camelback Mountain, upscale homes, and tall saguaro cacti, featuring the title “Arizona Relocation Guide / Why High-Tax State Buyers Are Choosing Arizona” centered across the sky.

1️⃣ The Wealth Migration Trend

According to national migration data, more than 65,000 high-income households left California alone in 2024. A significant percentage landed in Arizona — especially Scottsdale and Paradise Valley.

Top Reasons Cited:

State-income tax savings (Arizona’s rate tops out at 2.5 %)
Lower cost of living and business ownership
Pro-growth policies attracting tech and finance leaders
Ease of travel to LA, SF, and NYC
Luxury homes offering twice the space for half the price

For buyers coming from San Diego, Orange County, or Westchester, Arizona represents a lifestyle upgrade with financial freedom.

2️⃣ Tax and Financial Advantages

Factor	California	Arizona
Top State Income Tax Rate	13.3 %	2.5 % flat
Average Property Tax Rate	0.73 %	0.51 %
Corporate Tax	8.8 %	4.9 %
Capital Gains	Taxed as ordinary income	2.5 % max

That delta alone can save a high-income earner $50,000 – $200,000+ annually.

Add to that a thriving business environment, no inheritance tax, and a favorable trust law climate — and it’s clear why Arizona is on the shortlist for wealth preservation strategies.

3️⃣ Lifestyle without Compromise

Arizona offers resort-level living 365 days a year: spa resorts, golf clubs, fine dining, and world-class architecture.

Executives often remark that Scottsdale feels like “Beverly Hills meets Sedona” — but with less crowd and more community.

4️⃣ Business and Tech Relocation Boom

Arizona has become a magnet for corporate headquarters and remote executive talent.

Recent transplants include: technology firms, medical innovators, and finance leaders building desert campuses in the Scottsdale Airpark and Tempe corridors. Phoenix was recently ranked a Top 5 City for Post-Pandemic Corporate Migration.

For high-net-worth buyers, that means more network, more capital flow, and more liquidity in luxury real estate.

5️⃣ Luxury Real Estate Value Comparison

Market	Median Luxury Home Price (2025)	$ per Sq Ft	Typical Lot Size
Beverly Hills	$7.8 M	$1 880	0.3 ac
Newport Beach	$5.9 M	$1 420	0.25 ac
Paradise Valley	$4.1 M	$980	1 ac
North Scottsdale	$2.9 M	$720	0.75 ac

Conclusion: Arizona’s luxury homes deliver world-class architecture and space at 50 % the cost of coastal markets — with better tax efficiency.

6️⃣ The Murphy Group Advantage

At The Murphy Group, we’ve guided hundreds of families transitioning from high-tax states into Arizona’s luxury communities. Our team specializes in high-touch relocation — from property curation to move-in concierge services.

Our relocation formula includes:

Luxury home tours customized to your lifestyle and investment goals
Tax and trust planning coordination with specialist partners
Private intro to golf clubs, schools, and community networks
Strategic buy/sell timing to leverage both markets

When you partner with Murphy Group AZ, you’re not just buying a home — you’re buying a smarter way to live and invest.

7️⃣ Your Next Move

If you’re considering a move from California, New York, or any high-tax state, start with our Arizona Luxury Relocation Consultation.
We’ll analyze your timeline, current equity, and target neighborhoods to build a personalized move plan — tax smart, stress-free, and strategic.

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