AZ Property Taxes

Property taxes can be one of those mysterious expenses that catch homeowners by surprise. Whether you’re new to Arizona or have been here for years, it’s natural to want to understand just what you’re paying for and why. Today on LUXE BLOG, we look into the details of property taxes in Arizona for 2024, demystifying the numbers and what they mean for you. No jargon. Just plain talk about what it all boils down to. As always, readers should consult their own CPA, tax professional, and/or attorney.

Understanding AZ Property Taxes

When we talk about property taxes in Arizona, we’re talking about a key component that helps fund local services like schools, safety, and infrastructure. It’s not just about writing a check once or twice a year. Think of property taxes as investing in the community you live in.

• Rates vary by county
• Property taxes fund local schools, safety, and roads
• Assessed value determines what you owe
• Exemptions may apply to reduce your bill
• Payment deadlines are twice a year

Arizona property tax rates are different from one county to another. This means that someone living in Phoenix might pay a different amount compared to a resident in Tucson. But one thing’s consistent. Understanding the assessed value of your property is key to calculating what you’ll owe.

Also Read: Arizona’s Hottest & Fastest Growing Real Estate Markets In 2024

Assessed Value & Property Tax Calculation

The cornerstone of calculating property taxes in Arizona comes down to the assessed value of your home. This value isn’t just pulled out of thin air. It’s calculated based on a few factors that are updated regularly.

• Assessed Value: Determined by county assessor
• Market Value: Based on recent sales of comparable homes
• Limited Property Value (LPV): Cannot exceed market value; capped yearly
• Primary and Secondary Taxes: Different rates for different services

The assessed value is essentially a percentage of your home’s market value (it’s this number that dictates your tax). The Limited Property Value (LPV) is specifically limited to ensure that your taxes don’t spike drastically year over year. This can bring a bit of relief.

Average Property Tax Rates Across AZ Counties

Ever wondered why your friend across the state seems to be paying a lot less or more than you? It’s all down to county rates. Property taxes in Arizona vary greatly depending on where you live. Thanks to different priorities and needs.

• Apache County: Highest rate at 1.65%, with an average bill of about $1,108 due to lower home values.
• Cochise County: Average rate of 0.80%. Home values here average $150,100, leading to an approximate tax bill of $1,200.
• Coconino County: Property tax rate of 0.63%, but higher home values around $299,100 translate to a tax bill of approximately $1,884.
• Gila County: Property taxes at 0.72%. Home values average $157,600, resulting in an average tax payment of $1,134.
• Graham County: Rate of 0.64%, with median home values of $150,400 and average taxes of $962.
• Greenlee County: Lowest rate in the state at 0.39%. Home values are typically $117,300, meaning an average tax of $457.
• La Paz County: Property tax rate of 0.80%, with median property values of $84,600, leading to an annual tax of $676.
• Maricopa County: Average rate of 0.64%. Home values across the county average $278,700, leading to a tax bill of $1,783.
• Mohave County: Tax rate of 0.70%. With median home values at $172,100, residents pay about $1,204 annually.
• Navajo County: Rate of 0.75%, with home values around $135,800. Average taxes come to $1,018.
• Pima County: Higher rate at 1%. Average home values of $199,400 result in a tax bill of approximately $1,994.
• Pinal County: Property tax rate of 0.75%. Median home value is $200,200, with taxes averaging $1,501.
• Santa Cruz County: Effective rate of 0.76%. Median property value is $152,700, leading to an annual tax of $1,160.
• Yavapai County: Rate of 0.58%, with home values averaging $273,300 and annual taxes around $1,585.
• Yuma County: Rate of 0.84%. Home values average $139,200, resulting in an annual tax of $1,169.

With an average effective rate hovering around 0.51%, Arizona’s property taxes are considerably below the national average. Still, the amount you actually pay depends heavily on where your property is and its assessed value. While Pima County can have higher rates, counties like Greenlee keep it quite low. There is a real range across the state.

Also Read: NAR’s 2024 International Buyer Data And Its Impact On Arizona

Common Exemptions

Exemptions are another big piece of the puzzle when it comes to property taxes. Thankfully? Arizona offers a number of exemptions and deductions that can help bring down that final bill.

• Senior Citizens: Senior property valuation freeze available
• Disabled Veterans: Exemptions available for those with disabilities
• Widows and Widowers: Reduction in assessed home value
• Energy Efficiency Upgrades: Potential rebates for certain improvements

Taking advantage of available exemptions can significantly lower your taxes. For instance, a disabled veteran might see a substantial reduction in their assessed value. This can bring their final property tax bill way down. It’s always worth checking with your county assessor to see what you might be eligible for.

How To Pay Property Taxes

Paying property taxes is pretty straightforward. And timing is everything. Missing deadlines can lead to penalties that nobody wants. So, it’s good to know when payments are due and how much to budget.

• Payment Deadlines: October 1st and March 1st
• Installments: Two equal payments if your bill exceeds $100
• Payment Methods: Pay online, by mail, or in person

Property tax payments are due twice a year, with the first payment in October and the second in March. If you owe more than $100, you can split it into two. Doing so makes things a bit more manageable. It’s simple: stay on top of the due dates and avoid unnecessary fees.

Also Read: Seller’s Guide To Arizona Real Estate Cancellation Clauses

FAQs

1. What is the average property tax rate in Arizona?
The average effective property tax rate in Arizona is about 0.51%, much lower than the national average.

2. How often are property taxes reassessed?
Properties are reassessed annually, with the LPV (Limited Property Value) being adjusted to ensure fairness and compliance with the cap on yearly increases.

3. Can I appeal my property tax assessment?
Yes, if you believe the assessment is too high, you can file an appeal with your county assessor.

4. Are there exemptions for senior citizens?
Yes, seniors in Arizona can apply for a freeze on their property valuation, which helps stabilize taxes over a period of time.

5. How do I determine if I qualify for any exemptions?
You can visit your county assessor’s office or their website to check eligibility requirements for available exemptions.

In Summary

Learning the world of property taxes might feel like a chore, but having a handle on how it all works can save you time and possibly even some money. And stress! Whether it’s understanding the differences in rates across counties or exploring exemptions, information is your biggest ally. The cost of property taxes in Arizona in 2024 may vary from one household to another, but one thing remains constant, it’s a system built to keep communities strong.

Also Read: Why Is Rent So High In The State Of Arizona?

 

*DISCLAIMER

This article is for informational purposes only and does not provide legal, tax, or financial advice. Williams Luxury Homes does not offer any guarantees regarding the accuracy or completeness of the content provided here. Property tax laws can vary and change, so it’s important to consult with a qualified tax professional, attorney, CPA, or other trusted advisor for personalized advice. Any reliance you place on the information in this blog is strictly at your own risk. Williams Luxury Homes disclaims all liability for any actions taken based on the content provided. Always seek professional guidance for your specific situation.