Cost of Living & Housing in Cave Creek

Cave Creek pairs Arizona's real, low, flat 2.5% state income tax and a low effective property tax rate with genuinely expensive -- though somewhat more affordable than neighboring Carefree's -- housing.

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Housing Prices -- Expensive, but Real Terrain Below Neighboring Carefree

As of 2026 year-to-date, Cave Creek's median detached-home sale price is cited at roughly $1.1 million (about $486 per square foot) -- genuinely expensive by national standards, but meaningfully below Carefree's roughly $1.17M-$1.39M range documented separately in this dataset. Zillow's separate average-home-value figure ($1,057,746, up 1.1% over the year ending June 30, 2026) runs in a broadly similar range using a different methodology.

Taxes -- Arizona's Real Flat Income Tax, a Low Property Tax, a High Sales Tax

Arizona has taxed individual income at a flat 2.5% rate since tax year 2023 -- the lowest flat rate of any state that taxes income at all, applying identically in Cave Creek as statewide (this is NOT a no-income-tax state). Cave Creek's effective property tax rate is low but carries a real, disclosed disagreement across sources -- cited variously at 0.27% and 0.40% -- both well below the 1.02% national median. Sales tax runs comparatively high: a 9.3% combined rate (5.6% state + 0.7% Maricopa County + 3.0% town), identical to Carefree's rate since both towns levy the same 3.0% municipal share.

Income Context

Median household income is cited at $107,067 with a 7.21% poverty rate -- a comparatively affluent town by national standards, consistent with its expensive housing market, though genuinely less affluent than Carefree's separately-documented $147,165 median household income.

Key takeaways

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Last reviewed: 2026-08-24. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.