Quick Reference
New Jersey retirees face a genuine fork: Florida or Arizona? Both offer dramatic tax improvements over New Jersey. Florida wins on income taxes (zero vs Arizona's 2.5%) and Atlantic/Gulf beach access. Arizona wins on dry heat preference, hurricane-free living, and some of the world's best winter golf. For NJ retirees who have already decided on Arizona, the active adult community selection is rich — Sun City's golf value is unmatched nationally, and PebbleCreek's gated resort quality is a step up from most Florida alternatives.
The NJ-to-Phoenix community social dynamic is worth noting: New Jersey has a significant presence in Sun City and surrounding communities — NJ transplants find familiar accents, similar cultural references, and a social comfort level that makes adjustment faster. The large NJ contingent in the northwest Phoenix corridor is an underappreciated feature of the move.
The Financial Picture
New Jersey income tax: 1.4–10.75% graduated plus county income taxes up to 3.2% in some areas. Arizona: 2.5% flat. Annual income tax savings for NJ retirees moving to Arizona: $3,000–$9,000 on moderate retirement income. Less dramatic than NJ-to-Florida (which eliminates income tax entirely) but still meaningful. The property tax savings are where the NJ-to-Arizona move really pays.
NJ property taxes: Bergen County effective rates run $2.00–$3.00/$100 assessed value. On a $500,000 Bergen County home: $10,000–$15,000/year in property taxes. A comparable Phoenix active adult home in Sun City Grand or PebbleCreek: $3,500–$5,500/year. Annual savings: $6,000–$10,000. The Phoenix property tax advantage is nearly as good as Florida's for NJ buyers.
The Real Estate Math
Bergen, Morris, and Monmouth county equity is substantial — many NJ retirees have $400K–$800K in home equity. That equity funds all-cash purchases in Sun City ($175K–$380K) with significant capital remaining, or all-cash purchases in Sun City Grand ($320K–$600K) on the high end.
New Jersey spring market moves fast. Many NJ retirees visit Phoenix in January or February — the absolute best months to see Arizona's climate advantage — before committing. The contrast between a New Jersey February and a Phoenix February (65–75°F, sunshine) is powerful.