Tucson is often mentioned as a city where Korean families considering their first home purchase can find lower housing prices compared to Phoenix. However, just because home prices are lower does not mean that the tax burden is also lower, so it is important to develop the habit of checking property tax rates separately.

The effective property tax rate in Pima County, where Tucson is located, is reported to be around 0.8% to 0.9%, which is higher than the Arizona state average (about 0.5%) and also higher than Maricopa County (Phoenix). If we estimate the median home price in Tucson to be around $300,000, the annual property tax would be approximately $2,400 to $2,700. It is worth remembering that while home prices are low, the high tax rate means that the actual burden does not decrease as much as one might feel.

Home insurance premiums are influenced more by hail and wind damage during the summer monsoon season than by wildfires, which are less of a concern in Arizona's inland areas. In Tucson, insurance premiums often range from $1,200 to $1,600 per year, and due to the desert terrain, flood insurance is usually not necessary.

Maintenance costs can be estimated at 1% to 2% of the home price, which would mean annual costs of about $3,000 to $6,000 for a $300,000 home. Tucson has a significant number of older mid-century homes, so there are many properties that may need plumbing, roofing, or air conditioning system replacements. Being thorough during the inspection phase can help reduce the margin of error in predicting maintenance costs.

• Annual property tax: approximately $2,400 to $2,700
• Home insurance premium: approximately $1,200 to $1,600
• Maintenance costs: approximately $3,000 to $6,000

When these three items are combined, the estimated annual ownership cost for an average home in Tucson is around $6,600 to $10,300. If the home is in a new community with an HOA, an additional $600 to $1,800 per year will be added.

Even within Arizona, Pima County has a noticeably higher tax rate than Maricopa County, so there are often cases where buyers who chose Tucson based solely on home prices experience a significant difference in taxes. It is essential to compare tax rates by county before making a purchasing decision.

Arizona has a property tax freeze program for seniors aged 65 and older, and there are limited exemptions for residents who are disabled or have lost a spouse. You can check eligibility and application procedures on the Pima County Assessor's Office website.

Korean families should look up the recent assessed value of the property on the Pima County Assessor's Office site before signing a purchase agreement, and it can be helpful to set up monthly payments for property taxes and insurance through escrow for better financial planning. The key to purchasing a home in Tucson is not to overlook taxes and maintenance costs while being drawn in by the low purchase price.