Arizona does have a property tax, but it is administered entirely by counties rather than the state, and the effective rate averages roughly 0.44 percent of a home’s assessed value — among the lowest in the country. Revenue funds local schools, fire districts, roads, and other community services. As a property owner, you deal with your County Assessor for valuations and your County Treasurer for payments.
How Your Tax Bill Is Calculated
Every taxable property carries two values. The Full Cash Value is essentially the market value the County Assessor assigns to your property. The Limited Property Value is the figure actually used to calculate most of your bill, and it comes with a built-in ceiling.
Under ARS 42-13301, your Limited Property Value cannot rise more than 5 percent per year above the prior year’s Limited Property Value, and it can never exceed the Full Cash Value.1Arizona Legislature. Arizona Revised Statutes Title 42, Section 42-13301 – Limited Property Value Even if the market value of your home jumps sharply in a single year, the taxable value climbs slowly.
Once the Limited Property Value is set, Arizona applies an assessment ratio tied to how the property is used. Owner-occupied primary residences (Class 3) and residential rentals (Class 4) are both assessed at 10 percent.2Arizona Legislature. HB2474 – Senate Fact Sheet Commercial and industrial property (Class 1) is assessed at 15 percent.3Arizona Legislature. SB1276 – Senate Fact Sheet Ratios across all nine statutory classes range from 1 to 25 percent.
A quick example. Say you own your home and its Limited Property Value is $300,000. At the 10 percent Class 3 ratio, your assessed value is $30,000. Local tax rates are then applied to that $30,000 figure to produce the actual dollar amount you owe.
Primary and Secondary Levies
Your bill combines two kinds of levies. Primary levies fund day-to-day operating budgets for counties, cities, school districts, and community colleges. Secondary levies cover voter-approved items like general obligation bonds, budget overrides, and special districts for libraries, fire protection, or infrastructure. School district taxes usually make up the largest single share.
Exemptions and Value Freezes
Arizona offers several targeted breaks, rooted in Article 9, Section 2 of the state constitution and adjusted annually for income and value thresholds.
Widows, Widowers, and Persons With Disabilities
If you are widowed or have a total and permanent disability, you may qualify for a partial exemption. For tax year 2026, the exemption is worth up to $4,873 off your assessed value, and only if your total assessment across all properties you own does not exceed $36,454.4Arizona Legislature. Arizona Revised Statutes Title 42, Section 42-11111 – Exemption for Property, Widows and Widowers, Persons With a Total and Permanent Disability, Veterans With a Disability
Household income limits for 2026:
- $39,865 if no children under 18 live in the home
- $47,826 if one or more children under 18, or children with a total and permanent disability, live in the home
Applications are filed with your County Assessor between January 1 and March 1 of the tax year. Widows and widowers submit a certified death certificate for the deceased spouse. Applicants with disabilities submit a Certificate of Disability certifying a 100 percent total and permanent disability.
Senior Valuation Protection
The Senior Valuation Protection program freezes your home’s Limited Property Value for three years, so it does not rise even in a hot market. To qualify, you must be at least 65, have owned and lived in the home as your primary residence for at least two years, and meet income limits.5Pima County Assessor. Senior Property Valuation Protection
For 2026, the three-year average of your total household income from all sources, including nontaxable income, cannot exceed:
- $47,712 for a single owner
- $59,640 for two or more owners contributing to household income
The freeze lasts three years. Your assessor mails a renewal notice partway through the third year, and you have to reapply. Miss the renewal and the freeze ends, with your Limited Property Value returning to its current market-based figure.
Business Personal Property
Businesses that own tangible personal property in Arizona — equipment, furniture, fixtures, machinery — file a Business Property Statement with the County Assessor by April 1 each year. Beginning January 1, 2026, the first $500,000 of a business’s personal property is exempt from taxation, up from $269,905.6Arizona Legislature. SB1749 – Senate Fact Sheet If your total business personal property in a county is worth less than $500,000, you owe nothing on those assets. Above the threshold, you file and pay on the excess.
Payment Deadlines
Property tax bills are split into two installments. The first half is due October 1 and becomes delinquent after November 1 at 5:00 PM. The second half becomes delinquent after May 1 at 5:00 PM. If your total annual bill is $100 or less, the full amount is due October 1 and becomes delinquent after December 31.7Arizona Legislature. Arizona Revised Statutes Title 42, Section 42-18053 – Interest on Delinquent Taxes, Exceptions, Waiver
Most County Treasurer offices accept online, mail, and in-person payments. Late taxes accrue interest at 16 percent per year, calculated as simple interest at about 1.33 percent per month. Any partial month counts as a full month.7Arizona Legislature. Arizona Revised Statutes Title 42, Section 42-18053 – Interest on Delinquent Taxes, Exceptions, Waiver Interest is waived if the delinquency was caused by a county error, or if you pay the entire year’s taxes by December 31 of the tax year.
What Happens if You Don’t Pay
Unpaid Arizona property taxes trigger a tax lien process that can eventually cost you the property. Each February, counties auction tax lien certificates covering the prior year’s delinquencies. Bidding opens at 16 percent interest and is awarded to the investor willing to accept the lowest rate, sometimes as low as zero. The investor pays your delinquent taxes; you then owe that investor the tax amount plus interest to clear your title.
You have three years from the lien sale date to redeem the lien. After that, the lien holder can file a court action to foreclose your right to redeem, which can end in loss of the property.8Arizona Legislature. Arizona Revised Statutes Title 42, Section 42-18201 – Action to Foreclose Right to Redeem The lien holder must start foreclosure within ten years of acquiring the lien, or the lien expires. If you fall behind, call your County Treasurer quickly. Many counties offer payment arrangements for hardship cases.
Appealing Your Property Valuation
If you think the assessor overvalued your property, you can challenge the number. The County Assessor mails a Notice of Value early each year, and you have 60 days from the mailing date to file an appeal at the assessor level. For the 2026 Notice of Value, Maricopa County’s deadline was April 22, 2025; other counties run on similar timelines from their own mailing dates.9Maricopa County Assessor. Valuation Appeal and Taxation Process
If the assessor denies your appeal, you can petition the State Board of Equalization using DOR Form 82130 together with the assessor’s decision.10Arizona State Board of Equalization. Required Documentation When Filing an Appeal Online As a final route, you can file in the Arizona Tax Court or its Small Claims Division. The court deadline is December 15 of the year you received your Notice of Value.9Maricopa County Assessor. Valuation Appeal and Taxation Process Recent comparable sales, an independent appraisal, or documented property defects strengthen an appeal at any level.