Arizona Property Tax

Jeanne Sanford | July 3, 2025 | 7 min read

Arizona desert, full of cactuses, at sunset

Last updated July 3rd, 2025

Property Taxes in Arizona

If you’re a landlord, understanding Arizona property tax is key to protecting your rental income, and it may not feel urgent until it cuts into your cash flow and ROI. Even though Arizona has some of the lowest property tax rates in the country, these recurring costs can still add up, especially if you manage rentals across multiple counties or districts.

The good news? Property taxes fund services that make your rentals more appealing, like schools, emergency services, and infrastructure. The better you understand how property tax works, the easier it is to protect your profits and plan ahead.

In this TurboTenant guide, we’ll break down how property tax in Arizona works, what it funds, when it’s due, and how savvy landlords reduce costs for an effective rental property accounting strategy.

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Calculating Property Taxes in Arizona

In Arizona, all property taxes are calculated using the same basic formula; however, for landlords managing multiple properties, the actual amount due can vary significantly by county and district.

Property tax calculation: County Assessors calculate Arizona property taxes by multiplying your assessed value by the overall local tax rate. The assessed value, sometimes referred to as “net assessed value,” is a percentage of the property’s limited property value (LPV) and is determined by the County Assessor.

Assessed value × overall tax rate = property tax owed

Note: This calculation doesn’t include reductions like the State Aid to Education adjustment.

New and recent laws: There have been no significant changes to how Arizona calculates property taxes, although local levies and school district funding may shift annually.

National comparison: Arizona’s average effective property tax rate is approximately 0.45%, which is well below the national average of around 0.90%.

County/Municipality-Specific Rates

While Arizona’s average effective property tax rate is about 0.45%, what you owe depends largely on where your rental property is located and the funding needs of local governments.

Pima County: This county, which includes Tucson, has one of the highest rates in the state at approximately 0.78%.

Pinal County: Comes slightly above the state average at 0.52%, and supports fast-growing communities.

Coconino County: Home to Flagstaff, the rate remains moderate at 0.49% despite its large geographic footprint and a combination of urban and rural service needs.

Maricopa County: Arizona’s most populous region, which includes Phoenix, maintains a near-average tax rate of 0.47% due to its broad tax base and balanced public service demands.

Yavapai County: Offers one of the more affordable options with a rate of roughly 0.44%, which is slightly below the state average.

Reassessments and Increases

Reassessment frequency: Arizona reassesses property values annually by the County Assessor. You’ll receive a Notice of Value showing your Full Cash Value (FCV) and Limited Property Value (LPV).

Renovations and improvements: Adding a garage, building an accessory dwelling unit (ADU), or expanding the home’s square footage can trigger a reassessment and increase your LPV because these are considered major improvements.

Reassessment impact: Increases in assessed value often lead to higher property taxes. Rising market values, zoning changes, or infrastructure upgrades in your area can all impact your annual tax bill.

Reducing Taxes and Exemptions

Landlords in Arizona have several options to reduce their property tax burden. These include appeals and a range of exemptions based on age, disability status, or property use.

Appeals: Property owners who believe their assessed value is too high can file an appeal with their County Assessor’s Office within 60 days of receiving the annual Notice of Value.

Senior citizens: Arizona’s Senior Property Valuation Protection Program (Senior Freeze) is available to homeowners aged 65 and older with limited income.

Disabled veterans: Veterans with a service-connected disability could be eligible for an exemption based on their disability rating and income.

Disabled person: A total and permanent disability could make you eligible for a reduced assessed value.

Widow/widower exemption: Eligible surviving spouses may be entitled to a partial exemption.

Organization-specific: Certain properties transferred and used by religious, charitable, educational, or nonprofit organizations may be fully exempt.

Property Tax Deductions

Tax deductions: In Arizona, landlords can deduct property taxes as a rental business expense, along with other eligible costs such as mortgage interest, repairs, maintenance, insurance, and depreciation. Keeping track of these expenses is a crucial part of effective rental property accounting, which helps reduce taxable rental income and increase profitability.

Forms: Most landlords report rental income and expenses using Schedule E (Form 1040). However, if you’re providing substantial services to tenants — like daily cleaning, meals, or concierge-style offerings — you may need to file under Schedule C instead.

How Often You Pay Taxes

Payment frequency: In most Arizona counties, local governments bill property taxes in two installments each year.

Due dates: The first half is due October 1. It becomes delinquent after November 1. The second half is due on March 1 and it’s considered delinquent after May 1.

Late payments: If you miss either deadline, interest begins accruing on the unpaid amount at an annual rate of 16%, prorated monthly. To avoid penalties, consider setting reminders or using an escrow account if your mortgage lender offers one.

How to pay: Property taxes are typically paid through your County Treasurer’s office. You can pay by mail, online, in person, or through your mortgage servicer if they handle tax payments on your behalf.

What do property taxes pay for in Arizona?

Arizona property taxes help fund essential public services that keep communities running. These dollars support everything from classrooms and emergency services to roads and recreational facilities, providing the infrastructure that both landlords and tenants rely on.

Education: Property taxes help fund Arizona’s public school system through local levies and state support. These dollars pay for teacher salaries, school maintenance, textbooks, transportation, and other essential educational resources.

Public safety: Your property taxes support critical public safety services, including police departments, fire stations, sheriff’s offices, and emergency medical services (EMS).

Infrastructure: Cities and counties use property tax revenues to maintain Arizona’s infrastructure, including roads, highways, bridges, and water systems.

Government services: Property taxes also help fund essential local government programs and community assets, including public libraries, parks and recreation centers, sanitation and waste management, and local health initiatives.

Resources and Contacts