What Is the Average Property Tax in Arizona?

Property taxes are a form of ad valorem tax, meaning they are based on the assessed value of a property. These taxes serve as a funding source for local government services, including public schools, law enforcement, fire departments, and the maintenance of public infrastructure. In Arizona, property taxes are administered at the county level, and the state is recognized for having tax rates that fall below the national average. This system of local taxation means the specific amount a homeowner pays can vary significantly depending on their location within the state.

Arizona’s Average Property Tax Rates

Arizona’s statewide average effective property tax rate is approximately 0.56%, which is lower than the U.S. national average of around 0.90%. The effective tax rate represents the annual property tax payment as a percentage of the home’s current market value, providing a uniform way to compare tax burdens across different areas. While the state average is low, the rates differ considerably from one county to another.

This variation is a direct result of the budgetary needs of local taxing jurisdictions, such as cities, school districts, and special districts. For example, Pima County often has one of the higher effective rates in the state, around 0.84%, while counties like Mohave can have rates as low as 0.44%. More populous counties such as Maricopa fall closer to the state average.

The table below illustrates the average effective property tax rates for some of Arizona’s most populous counties.

| County | Average Effective Rate |
| — | — |
| Maricopa | 0.56% |
| Pima | 0.84% |
| Pinal | 0.58% |
| Yavapai | 0.55% |
| Coconino | 0.63% |
| Mohave | 0.44% |

The Property Tax Calculation Formula

The calculation of an Arizona property tax bill begins with the County Assessor determining two values for a property: the Full Cash Value (FCV) and the Limited Property Value (LPV). The FCV is an estimate of the property’s market value, or the price it would likely sell for.

The LPV, however, is the value used for calculating primary property taxes and is subject to a statutory constraint. The LPV cannot be increased by more than 5% from one year to the next, providing predictability for homeowners. The LPV will be the lower of either the FCV or the previous year’s LPV plus 5%.

Once the LPV is established, it is multiplied by an assessment ratio determined by the property’s legal classification. For most homeowners, their property falls under Legal Class 3 for owner-occupied primary residences, which has a 10% assessment ratio. Multiplying the LPV by this ratio yields the property’s “assessed value.”

The final step involves applying the combined tax rate to the assessed value. This rate is a sum of rates from all applicable taxing authorities, including the state, county, city, and school districts. These rates are categorized into primary taxes for government operations and secondary taxes for voter-approved bonds. For instance, if a home has an LPV of $300,000, its assessed value would be $30,000. If the combined tax rate is $12 per $100 of assessed value (12%), the total tax bill would be $3,600.

Property Tax Exemptions and Relief Programs

Arizona offers several programs designed to reduce the property tax burden for specific groups of homeowners. These are statutorily defined relief measures that eligible individuals must apply for through their County Assessor’s office. The programs provide relief by either freezing a property’s value or exempting a portion of its value from taxation.

One program is the Senior Valuation Protection Option, often referred to as the “senior freeze.” To qualify, a homeowner must meet age, residency, and income requirements. This program freezes the Limited Property Value (LPV) of the property. It is important to understand that this does not freeze the tax rate or the final tax bill, as tax rates can still change based on local budgets. The protection prevents the LPV from increasing, which stabilizes a component of the tax calculation.

Another form of relief is available for widows, widowers, and individuals with total and permanent disabilities who meet specific income and property value limitations. Eligible homeowners can have a portion of their property’s assessed value exempted from taxation. The specific amount of the exemption is adjusted annually for inflation, which directly reduces the taxable base.

How to Pay Your Arizona Property Tax

Property tax bills are issued annually by the County Treasurer and are paid in two installments. This payment schedule helps homeowners manage the expense over the course of the year rather than in a single lump sum.

The first installment of the tax bill is due on October 1 and becomes delinquent if not paid by 5:00 p.m. on November 1. The second installment is due on March 1 of the following year and becomes delinquent after 5:00 p.m. on May 1. It is the homeowner’s responsibility to ensure these deadlines are met to avoid interest penalties.

Homeowners have several methods for submitting their payments. Many pay through an escrow account managed by their mortgage lender, where tax payments are collected with monthly mortgage payments and remitted to the county. Alternatively, payments can be made directly to the County Treasurer online, by mailing a check, or by paying in person.

To access specific bill information, view payment history, or make an online payment, homeowners should visit the website of the County Treasurer for the county in which the property is located. These websites serve as the primary portal for all property tax payment functions.