Any person who owns real estate in Arizona is also liable for Arizona property taxes in addition to state income taxes.
Real property tax regimes impose financial obligations on land and building owners depending on the value of their properties.
State real estate taxes vary across the U.S., with Arizona’s likely being higher than Wisconsin’s or any other state’s.
Who Owns Arizona Real Property Taxes?
Real estate taxes must be paid if you possess real estate in Arizona. Therefore, whether you own real estate as an individual or a business, you must pay real estate tax on it. You are still obligated to pay it, even if the real estate was given to you as a gift through an estate or you own rental real estate.
In Arizona, no minimum or maximum amount must be paid for real estate taxes. Real property taxes must be paid in Arizona, whether you own a $50,000 or $5,000,000 home.
If you bought real estate in the middle of the year, there’s a chance your realtor will figure out a way for you and the seller to divide the expense of real estate taxes for the current fiscal year. Your mortgage interest statement serves as proof of whether or not this is the case.
What are the Arizona Property Tax Rates?
Each year, taxing authorities calculate tax rates based on their financing needs and tax base. This means that rates may fluctuate yearly. However, for owner-occupied residences, the combined main tax rate across all districts is limited to 1% of the property’s limited value. If your overall rate exceeds that limit, your school district taxes will be decreased, with the state covering the difference.
Even homeowners with tax rates less than the 1% maximum benefit from the state if they live in their home. In this situation, owner-occupied homes qualify for a homeowner rebate of 40% of school taxes, up to $600 each year. This refund, together with the 1% cap described above, helps keep Arizona’s property taxes low. The table below provides the effective property tax rates for each county in Arizona.
| County | Median Home Value | Median Annual Property Tax Payment | Average Effective Property Tax Rate |
| Apache County | $61,800 | $1,018 | 1.65% |
| Cochise County | $150,100 | $1,204 | 0.80% |
| Coconino County | $299,100 | $1,899 | 0.63% |
| Gila County | $174,300 | $1,259 | 0.72% |
| Graham County | $146,600 | $934 | 0.64% |
| Greenlee County | $91,800 | $361 | 0.39% |
| La Paz County | $84,600 | $679 | 0.80% |
| Maricopa County | $278,700 | $1,797 | 0.64% |
| Mohave County | $172,100 | $1,210 | 0.70% |
| Navajo County | $135,800 | $1,024 | 0.75% |
| Pima County | $199,400 | $1,993 | 1.00% |
| Pinal County | $200,200 | $1,511 | 0.75% |
| Santa Cruz County | $152,700 | $1,160 | 0.76% |
| Yavapai County | $273,300 | $1,577 | 0.58% |
| Yuma County | $139,200 | $1,172 | 0.84% |
Source: SmartAsset
Maricopa County
Maricopa County, Arizona’s largest county, includes Phoenix and the nearby cities of Mesa, Chandler, and Glendale. The average effective tax rate in the county is only 0.64%. Rates vary by city and school district, however.
Pima County
Pima County has the second-highest property tax rates in Arizona. Pima County’s average effective property tax rate is 1.00%. That is greater than the state average, and the average Pima County homeowner pays $1,753 in property taxes each year, which is also over the statewide average.
Pinal County
Pinal County’s average effective property tax rate is 0.75 percent. That is above average for Arizona, but significantly lower than the national average. This means that a homeowner with a $200,000 home may expect to pay approximately $1,520 in property taxes per year.
Yavapai County
Yavapai County, located north of Phoenix, includes the city of Prescott as well as various National Forests and wilderness areas. Residents can enjoy the county’s great natural beauty while paying cheap property taxes. The average effective property tax rate in Yavapai County is 0.58%.
Mohave County
Mohave County has the fifth-largest land area in the United States. It also boasts among the lowest property taxes. The median annual tax payment in Mohave County is $1,210, which is approximately $500 less than the state average. The county’s average effective property tax rate is 0.70 percent.
Yuma County
Yuma County, located in Arizona’s southwestern region, is bordered by Mexico and California. Its property tax rates are higher than the state average. Yuma County’s average effective property tax rate is 0.84 percent. Yuma County’s median house value is $139,200, thus, the average homeowner pays $1,172 in property taxes each year.
Coconino County
Coconino County, in north-central Arizona, has the state’s highest median house value of $299,100. So, despite the comparatively low average effective tax rate of 0.63%, real payments are among the highest in the state. Coconino County homeowners spend an average of $1,899 in property taxes each year. That, however, is still far lower than the national average of $2,795.
Cochise County
Cochise County is located in the southeast of Arizona, along the border with New Mexico and Mexico. The county’s tax rates are comparable to state averages but vary depending on where you live and, more importantly, per school district. Cities in Cochise County charge primary rates, which means they cannot charge more than 1% for owner-occupied properties when coupled with municipal and county taxes.
Navajo County
The average homeowner in Navajo County pays $1,024 in property taxes each year, which is less than half the national average. This is partly due to the county’s comparatively low house values. The median is only $135,800. Even still, rates remain relatively low. The average effective tax rate in Navajo County is 0.75 percent.
Apache County
If you’re looking for a place with low real estate taxes, look no further than Apache County. The median real estate tax payment is now $1,018, more than double the previous rate of $505, but still nearly three times lower than the national average.
What are Property Taxes Used For?
Arizona uses the money it collects for a variety of state-wide public programs. It could be used for:
- First responders and other law enforcement
- General government services
- Local levies
- Municipal infrastructure and land construction or improvements
- Municipal employees’ pay
- Resident services like garbage pickup
- Recreational services
- Protective services
Read more: 13 Homeowner Tax Credits And Deductions You Should Know
How Do You Pay Arizona Property Tax?
Real property taxes in Arizona are probably already being paid if you pay your mortgage. It would be removed from escrow. A typical mortgage payment consists of:
- Principal
- Interest
- Homeowner’s insurance
- Arizona real property taxes
Check your most recent mortgage statement to see if your monthly mortgage payment includes Arizona real estate taxes. It’s likely to appear on the statement as a line item.
View more information on Arizona real property tax rates.
Where to Go for State Real Estate Tax Help
Real estate taxes can be complicated. Real property taxes must be estimated correctly for you to avoid overpaying, underpaying, or not paying any at all. You can also deduct federal real estate taxes in addition to this. However, it might be difficult to ascertain how much the deduction is, who receives it, and when.
XOA TAX Live Service is the place to go if you need more assistance with your Arizona real property tax issues or general Arizona state tax facts. We’ll match you with a tax professional who is knowledgeable about your state. Without going to an office, you can get your taxes done by a professional tax expert.
Want to file in a different way? No issue; with all of our tax filing options, you can obtain Arizona state tax expertise.
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