Arizona's property tax rate varies by county and municipality, but the statewide average is around 0.62% of assessed value

Arizona does not have a single property tax rate. Instead, each county sets its own rate based on local budget needs, and cities and special districts add their own levies on top. Your actual tax bill depends on where your property sits — a home in Maricopa County pays a different rate than one in Pima County, and a home in Phoenix pays more than one in an unincorporated area of the same county.

The state limits how much counties can raise property tax rates year to year, but the base rate itself is set locally. This means you need to know your specific county and city to find your actual rate, not just the statewide average.

Key Takeaways

  • Arizona property tax rates are set by county, city, and special districts, so your rate depends on your exact location.
  • The assessed value of your home is typically 10% of its market value, and you pay tax on that assessed value, not the full purchase price.
  • Primary residences receive a significant exemption that lowers the assessed value, while investment properties and vacant land do not.
  • Your county assessor's office sends a notice of assessed value each year, and you can challenge it if you believe it is wrong.
  • Tax bills are due in two installments: the first half in October and the second half in March.

How Arizona calculates the assessed value of your home

Arizona uses a limited property tax system where you do not pay tax on your home's full market value. Instead, the county assessor determines an assessed value, which is capped at 10% of the property's full cash value (what it would sell for today). This cap is one reason Arizona property taxes are lower than in many other states.

The assessor's office sends you a Notice of Assessed Value each year, usually in July. This notice shows the assessed value the county will use to calculate your tax bill. If you disagree with the assessed value, you can file a protest with the county assessor's office by the important date shown on the notice — typically in August. You do not need a lawyer to protest; you can do it yourself by submitting a form and supporting documents like a recent appraisal or comparable sales in your area.

If the assessor denies your protest, you can appeal to the Arizona Department of Revenue or request a hearing before the county board of supervisors, depending on your county's process. The assessor's office can tell you which route applies where you live.

The primary residence exemption and how it reduces your tax

Arizona offers a primary residence exemption that significantly lowers the assessed value of your main home. If you own and occupy a home as your primary residence on January 1 of the tax year, you may be may have access to to this exemption. The exemption reduces your assessed value by a fixed dollar amount that changes each year — for the 2024 tax year, it was $3,000 in most counties, though some counties offer a slightly higher amount.

You must file for the exemption with your county assessor's office. If you own your home outright, you file once and the exemption continues each year unless you move or stop using it as your primary residence. If you have a mortgage, your lender may file the exemption on your behalf, but you should verify this with your county assessor. If you buy a home mid-year, you may still receive a partial exemption for that year.

Investment properties, vacation homes, and vacant land do not receive this exemption, so their assessed value is higher and their tax bill is larger. This is one reason rental properties and commercial real estate carry higher property tax costs in Arizona.

What your property tax bill actually includes

Your property tax bill is not just the county rate. It includes levies from multiple taxing districts that serve your property:

  • The county general fund
  • Your city or town (if you live in an incorporated area)
  • School districts
  • Community college districts
  • Special districts (fire, water, library, flood control, or others depending on your location)

Each district sets its own rate, and they all add together. A property in Phoenix will have a higher combined rate than the same property in an unincorporated area of Maricopa County because Phoenix adds a city levy. A property in a district with a new school bond will have a higher rate than one without.

Your county assessor's office or the county treasurer's office can show you a breakdown of which districts tax your property and what each one charges. Many counties post this information online, and you can search by address.

How property tax rates differ between Arizona counties

Maricopa County (Phoenix area) and Pima County (Tucson area) are the largest and most populous, but their rates are not identical. Smaller counties like Gila, Graham, and Greenlee may have different rates based on their local needs. Even within a county, rates vary by city and special district.

The best way to find the exact rate for your property is to contact your county assessor's office or visit the county's website. Most counties have a property tax calculator or rate table that shows the combined rate for your specific address. If you are considering buying property in Arizona, ask the real estate agent or title company for the property tax rate before you make an offer — it can vary significantly between neighborhoods.

When property taxes are due and how to pay them

Arizona property tax bills are due in two installments. The first half is due by October 1, and the second half is due by March 1. If you pay after these dates, you owe a penalty and interest. If you have a mortgage, your lender may collect property taxes as part of your monthly payment and pay them on your behalf — check your loan documents to see whether this is the case.

You can pay property taxes directly to your county treasurer's office by mail, in person, or online. Most counties accept credit cards and electronic transfers, though some charge a processing fee for credit card payments. If you pay online, allow several days for the payment to post before the important date.

If you cannot pay in full by the important date, contact your county treasurer's office when ready. Some counties offer payment plans or deferrals for seniors or disabled homeowners, but you must request them before the important date passes.

Property tax exemptions and deferrals for seniors and disabled homeowners

Arizona offers a property tax deferral program for homeowners age 65 or older, totally disabled, or surviving spouses of such individuals. If you meet the income and asset limits, you can defer paying property taxes on your primary residence. The state pays the taxes on your behalf, and the debt is repaid from your estate when you sell the home or pass away.

To explore for the deferral program, contact your county assessor's office. You will need to provide proof of age or disability, income documentation, and information about your home. The process important date is typically in early summer, so explore well before the October tax important date.

Arizona also offers a homeowners' property tax exemption for certain disabled veterans. If you are a veteran with a service-connected disability rated by the U.S. Department of Veterans Affairs, you may be may have access to to a reduction in assessed value. Contact your county assessor's office for details on how the process works.

Frequently Asked Questions

Can I deduct Arizona property taxes on my federal income tax return?

Yes, you can deduct state and local property taxes on your federal return, but only up to $10,000 per year (combined with state income tax and sales tax). This limit applies regardless of how much you actually paid. Consult a tax professional about whether itemizing deductions is better for your situation than taking the standard deduction.

What happens if I don't pay my property taxes on time?

Arizona charges a penalty and interest on late payments. If taxes remain unpaid for three years, the county can sell your property at a tax sale to recover the debt. Contact your county treasurer when ready if you fall behind — they may be able to work out a payment plan before enforcement action begins.

Do I pay property tax on land I own but haven't built on yet?

Yes, vacant land is taxed as real property. It does not receive the primary residence exemption, so the assessed value is higher than it would be for an occupied home. The tax rate depends on the county and any special districts that serve the land.

How often does the county reassess my home's value?

Arizona counties reassess all properties annually. You receive a Notice of Assessed Value each year showing the new assessed value. Even if you do not protest, the value can change based on market conditions, improvements you made, or changes in comparable properties in your area.

What is the difference between assessed value and market value?

Market value is what your home would sell for today. Assessed value is capped at 10% of market value and is used to calculate property taxes. A home worth $400,000 would have an assessed value of no more than $40,000, minus the primary residence exemption if you may have access to.