What First-Time Homebuyers Need to Know About Property Taxes in Arizona

Feeling Confused About Arizona Property Taxes?
You’re not alone. Property taxes can feel a bit overwhelming, especially if you’re buying your first home in Arizona. The good news? Arizona actually has some of the lowest property taxes in the country. But that doesn’t mean you can ignore them—knowing how they work helps you plan your budget better and avoid surprises.

Let’s break down what you need to know in simple terms.

What Are Property Taxes and Why Do You Pay Them?
Property taxes are paid by homeowners each year and help fund essential local services like:

Schools

Roads

Police and fire departments

Libraries and parks

So, even though no one loves paying taxes, they go toward keeping your community running smoothly.

How Are Property Taxes Calculated in Arizona?
Arizona property taxes are based on two main factors:

Assessed Value of Your Home – This is not the same as your purchase price. It’s what the county assessor determines your home is worth.

Local Tax Rate – Varies depending on where you live. Each city, town, and district (like a school or fire district) can set their own tax rate.

Here’s the basic formula:
Assessed Value x Tax Rate = Annual Property Tax

For example:
If your home’s assessed value is $250,000 and the tax rate is 0.60%, your yearly tax bill would be around $1,500.

Arizona’s Average Property Tax Rate
Statewide, Arizona’s average effective property tax rate is about 0.62%. Compare that to states like New Jersey (over 2%), and it’s easy to see why Arizona is appealing to first-time buyers.

In areas like Gilbert and Chandler, you might see rates between 0.50% and 0.80%, depending on local levies and school districts.

When and How Do You Pay Property Taxes?
In Arizona, property taxes are paid twice a year:

First half: Due October 1, delinquent after November 1

Second half: Due March 1, delinquent after May 1

You can pay your taxes directly or have them included in your monthly mortgage payment (called an escrow account).

Tips for First-Time Buyers in Arizona

Always ask for the current property tax bill when considering a home.

Use the county assessor’s website (like Maricopa County Assessor) to estimate future taxes.

If you're buying new construction, remember your tax bill might increase once the home is fully assessed.

Are There Any Property Tax Discounts?
Yes! Arizona offers tax relief programs such as:

Senior or disabled homeowner programs

Widows or widowers exemption

Exemptions for veterans

Check with your county assessor’s office to see if you qualify.

Final Thoughts on Arizona Property Taxes
Buying a home in Arizona is exciting—and understanding how property taxes work is just one piece of the puzzle. Whether you're eyeing a cozy home in Chandler or a modern townhouse in Gilbert, knowing your tax responsibilities will help you budget better and plan smarter.

Still have questions? Reach out to a local real estate pro or your county assessor’s office for personalized advice tailored to your area.