Arizona buyer question
How are property taxes calculated in Arizona?
The math behind an Arizona property tax bill, step by step, with a worked example and the checks that matter when you buy.
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The short answer
Quick answer: Arizona taxes a home on its limited property value, not its sale price. That value can rise no more than 5% a year. An owner-occupied home (class three) is assessed at 10% of it, and the tax area's combined rates per $100 of assessed value are applied, minus state homeowner aid on school taxes.
Source: Arizona Constitution, Article 9, Section 18; A.R.S. §42-15003 and §42-12003; Arizona Department of Revenue, Property Tax. Last updated .
Who does what in Arizona's property tax system?
The Arizona Department of Revenue says the system is run jointly by the department and each of the 15 county assessors and treasurers. The county assessor values and classifies your home. Local governments, school districts, and special districts set tax rates. The county treasurer sends the bill and collects it. Appeals and relief programs are handled at the county level.
How is the tax figured, step by step?
Full cash value
The assessor's estimate of market value. It appears on the yearly notice of value, which assessors must mail before March 1 (A.R.S. §42-15101).
Limited property value
The value taxes are actually based on. Since tax year 2015 it's the lesser of full cash value or the prior year's limited value plus 5% (Arizona Constitution, Article 9, Section 18; A.R.S. §42-13301).
Assessment ratio
An owner-occupied primary residence is class three property, assessed at 10% of its limited property value (A.R.S. §42-12003 and §42-15003).
Tax rates
Rates are set per $100 of assessed value and stack up by tax area: county, city or town, school district, community college, and special districts such as fire or flood control.
Homeowner aid
For class three homes, the state pays part of the school district's primary tax (A.R.S. §15-972), so the primary rate a homeowner pays is lower than the posted rate.
What does that look like with numbers?
A hypothetical home with a limited property value of $300,000 and a combined residential rate of 7.50 per $100 of assessed value:
| Step | Math | Result |
|---|---|---|
| Assessed value | $300,000 × 10% | $30,000 |
| Yearly tax | $30,000 ÷ $100 × 7.50 | $2,250 |
| Monthly equivalent (what escrow collects) | $2,250 ÷ 12 | $188 |
Arithmetic illustration only, before any special district tax. A shortcut: each 1.00 of rate costs about $100 a year per $100,000 of limited property value.
Real rates vary a lot. In Maricopa County's 2026 table, Gilbert's 4 residential tax areas run 6.81 to 8.17 per $100 and Chandler's 4 run 7.45 to 8.27, mostly because of school district rates. Every city's range is in Arizona property tax by city.
How fast can my taxable value go up?
The 5% limit applies to the value, not the bill. If last year's limited value was $300,000 and this year's full cash value is $400,000, this year's limited value can be no more than $315,000. The gap closes a little each year until limited value catches up to full cash value. Tax rates can also change every year as districts set their budgets, so the bill can rise faster or slower than the value.
There's also a ceiling on most of the bill: taxes on a home can't exceed 1% of its limited value, not counting bond taxes, voter-approved overrides, and special district levies, which sit outside that cap (Article 9, Section 18).
Create your free account to see all homes for sale that fit the monthly payment you're comfortable with, each with its actual property taxes, HOA dues, estimated homeowners insurance, and mortgage insurance when it applies, plus its own estimated closing costs and APR disclosure.
Opens a third-party home search site. Payments shown there are estimates to help you search, not a loan offer or rate quote. Your actual payment depends on price, down payment, credit, taxes, insurance, HOA, and loan program.
Does buying a home reset its taxable value?
Not directly. The limited value follows the formula above, not the price you pay, so a recent buyer and a long-time owner of similar homes can see similar bills. That's why a home's current tax bill is a better guide than a city average. One timing detail: Arizona values a year ahead, so Maricopa County's parcel records already list values for tax year 2027.
What can change when you buy is the classification. If the seller rented the home out, it may have been class four. Once you live there as your primary residence, it should be class three, which is what qualifies it for the homeowner aid on school taxes.
How do I make sure my home is classified as my primary residence?
The assessor decides classification using standard criteria set by the Department of Revenue, including how long you live there each year, your voter registration precinct, your driver license address, and where your vehicles are registered (A.R.S. §42-12053). After you move in, update those addresses. If your notice of value shows the wrong class, you can file a petition for review with the assessor within 60 days after the notice was mailed (A.R.S. §42-16051).
What else can show up on the bill?
- Special district taxes. Some newer neighborhoods sit in a special tax district that repays bonds for roads, water, and sewer lines. It shows up as an added tax line, a community tax that can change the monthly cost of otherwise similar homes. See what a special district tax is and the HOA and special district tax lookup.
- Other district charges, such as fire districts, improvement districts, and water replenishment assessments, depending on where the home is.
When is the bill due, and how does escrow handle it?
The first half is due October 1 and becomes delinquent after November 1; the second half is due March 1 and becomes delinquent after May 1 (A.R.S. §42-18052). Most buyers with a mortgage pay through an escrow account, so the lender collects a monthly share and pays the treasurer. If the bill changes, your escrow payment changes with it.
More: property tax by city · all cost-of-owning guides · what's on a Loan Estimate · how much house can I afford?
General information, not tax advice. The county assessor and treasurer are the sources of truth for a specific parcel.
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Sources
- Arizona Department of Revenue, Property Tax (retrieved October 6, 2026)
- Arizona Constitution, Article 9, Section 18 (residential property tax limits; 5% limit on value increases) (retrieved October 6, 2026)
- Arizona Revised Statutes §42-13301, limited property value (retrieved October 4, 2026)
- Arizona Revised Statutes §42-12003, class three property (owner-occupied primary residence) (retrieved October 6, 2026)
- Arizona Revised Statutes §42-15003, assessment ratio for owner-occupied residential (class three) property (retrieved October 4, 2026)
- Arizona Revised Statutes §15-972, homeowner's rebate (state aid on the school primary rate) (retrieved October 4, 2026)
- Arizona Revised Statutes §42-12053, criteria for primary residence vs. secondary or rental property (retrieved October 6, 2026)
- Arizona Revised Statutes §42-15101, annual notice of full cash value (retrieved October 6, 2026)
- Arizona Revised Statutes §42-16051, petition for assessor review of valuation or classification (retrieved October 6, 2026)
- Arizona Revised Statutes §42-18052, property tax due dates and delinquency (retrieved October 4, 2026)
- Maricopa County, 2026 Tax Rates (rates per $100 of assessed value by tax area, school, city, fire, and special districts) (tax year 2026; retrieved October 4, 2026)
- Maricopa County Assessor's Office, parcel and subdivision map layers (subdivision plats and parcel tax-year values; retrieved October 6, 2026)
Frequently asked questions
How are property taxes calculated in Arizona?
The county assessor sets a limited property value, which can rise no more than 5% a year. An owner-occupied home is assessed at 10% of that value, and the tax area's rates per $100 of assessed value are applied, with state aid lowering the school primary tax for homeowners.
What is limited property value in Arizona?
The value Arizona property taxes are based on. Since 2015 it's the lesser of the assessor's full cash value or the prior year's limited value plus 5% (Arizona Constitution, Article 9, Section 18).
What is class three property in Arizona?
Residential property occupied by the owner as a primary residence (or by certain relatives), assessed at 10% of its limited property value. It qualifies for homeowner aid on school taxes.
Do Arizona property taxes go up when a home sells?
Not automatically. The limited value follows the 5% formula, not the sale price. Rates can change yearly, and the classification can change if the home goes from rental to owner-occupied or the reverse.
How do I appeal my Arizona property value?
File a petition for review with the county assessor within 60 days after the notice of value was mailed, stating your opinion of value and the information that supports it (A.R.S. §42-16051).
How does the assessor know a home is my primary residence?
Under Department of Revenue criteria, including how long you live there each year, your voter precinct, your driver license address, and your vehicle registration address (A.R.S. §42-12053).