Arizona property taxes are calculated on your home's Limited Property Value, which by law can increase by no more than 5% per year, multiplied by an assessment ratio and the combined tax rates of the districts where you live. Taxes are paid in arrears, in two halves each year. Most buyers with a mortgage pay them monthly through an escrow account, and the bill is prorated between buyer and seller at closing.
Full cash value vs limited property value
The county assessor sets two values each year:
- Full Cash Value: the assessor's estimate of market value.
- Limited Property Value (LPV): the value actually used to calculate most of your tax. Under a 2012 voter-approved constitutional change, LPV generally cannot grow by more than 5% a year, and cannot exceed full cash value.
That cap is why Arizona tax bills tend to rise gradually even when market values jump. It is also why two similar homes on the same street can carry different tax bills.
How the bill is calculated
In simplified terms: LPV x assessment ratio x tax rate. For a primary residence, the assessment ratio is set by state law for residential property, and the tax rate is the sum of the rates for your school district, city, county, community college, fire district and other special districts. Special districts, bonds and overrides are why a home in one part of the Valley can be taxed noticeably more than a similar home a few miles away.
Owner-occupied primary residences may also receive a state-funded homeowner rebate on part of the school tax. Make sure your home is classified as your primary residence with the assessor after you buy.
When taxes are due in Maricopa County
Arizona taxes are paid in two installments:
- First half: due October 1, delinquent after November 1.
- Second half: due March 1, delinquent after May 1.
If you pay through escrow, your servicer handles both. If you pay directly, mark the dates. Confirm current details on the county treasurer's site.
How taxes are handled at closing
Because taxes are paid in arrears, the seller owes for the days they owned the home this tax year. That amount is prorated at closing, usually as a credit to the buyer. The escrow company calculates it. You also fund your new escrow account with a few months of taxes. See Escrow Accounts Explained and Arizona Closing Costs: Who Pays What.
The new construction surprise
On a newly built home, the current tax bill may reflect only the land, because the house did not exist when it was last valued. Your lender may estimate taxes on that low figure. A year or so later, the completed home is assessed and the bill rises, sometimes by several times. Your escrow account then comes up short and your payment jumps.
Ask your lender to estimate taxes on the completed home, using comparable homes in the same community, and budget on that number from day one.
Taxes and how much you can afford
Property tax is part of the payment a lender qualifies you on. A higher-tax district means a smaller loan for the same payment. When you are choosing between communities, compare tax bills along with HOA dues. See How Much House Can I Afford in Arizona?.
This is general information about how Arizona property taxes work, not tax advice. Consult the county assessor, treasurer or a tax advisor about your own property.
Why ask me
- I answer the question before I sell you anything. If renting, waiting or a different program is the better move, I will say so.
- Real numbers, not a calculator guess. I price your actual scenario, side by side, with the fees on the page.
- Every program under one roof. Conventional, FHA, VA, jumbo, and non-QM options like bank statement, DSCR and asset-based loans, so the program fits you instead of the other way around.
- You talk to the principal. Ricky Khamis is President of EPiQ Lending, NMLS #173141, lending in Arizona since 1999 and a 2025 Presidents Club Winner at CMG Home Loans. Direct line: (480) 999-9842.
EPiQ Lending is NMLS #1936984, at 7975 N. Hayden Road, Suite A-101 in Scottsdale. Verify all of it before you trust any of it: Ricky's EPiQ Lending profile, the Scottsdale branch, and the license itself at NMLS Consumer Access. Hold every lender to that standard, including us.
More plain-English answers in the Mortgage Education library.
Equal Housing Opportunity. This is general information, not a commitment to lend or an offer to extend credit. Program guidelines, eligibility requirements and documentation standards vary by investor and change over time. Rates, terms and program guidelines change and depend on credit approval, property appraisal and other qualifying factors. Not all applicants will qualify. This is not legal or tax advice; consult a qualified professional about your own situation.
Find out which program actually costs you less
FHA, conventional and jumbo price the same borrower very differently once the mortgage insurance is compared across the years you will own the home. Tell me the shape of your file and I will run them side by side.
Looking at a specific home? Send me the address and I will run the numbers: rickykhamis.com/analyze
