Arizona is a wonderful place to settle in and call home. Affordable housing, great climate, tons of activities, and another perk: Property Taxes. Here in Maricopa county our tax base is very affordable compared to many other states. But it usually is a bit confusing….read on for an in-depth explanation. If you already own a property in Arizona and want to check on your assessment you may do so here: Maricopa.gov
Assessed Value vs. Market Value
Many people have some confusion on how are property taxes are calculated. Arizona property taxes on owner-occupied residences are levied based on the Assessed Value, not current market value. In Maricopa County the assessment ratio for owner-occupied residential property is 10 percent of Full Cash (market) Value. So if your home is valued at $200,000, you will be charged property tax based on the assessed value of $20,000.
So, how much will your property tax be? It’s difficult to say, because that depends on where you live. Cities, schools, water districts, community colleges, bond issues–all these determine your specific tax rate. The average tax rate on homes in Arizona before exemptions and rebates is typically somewhere between .87% and 1.5% of market value.
If your home is assessed at $200,000, and your property taxes were exactly 1.3%, then you’d be paying $2,600 per year in property tax.
Computing Arizona’s Property Tax
The tax rate applicable to each parcel of property is the sum of the state, county, municipal, school, and special district rates. Say that the current tax rate on homes in Maricopa County is 1.3% of full cash value or 13% of assessed value. So, if your home is assessed with a Full Cash Value of $200,000, and your property tax rate was 1.3%, then you’d be paying $2,600 per year real estate tax on your home.
Let’s see how it breaks down
$200,000 [Full Cash Value] x .1 [or 10%] = $20,000 [Assessed Value]
$20,000 [Assessed Value] x .13 [Tax Rate of 13%] = $2,600
$200,000 x .013 [or 1.3%] = $2,600
Keep in mind that the assumption of 13% of full cash value is an example only. The actual tax rate in any particular year may be higher or may be lower. It may also vary from city to city within Maricopa County and may be different in other Arizona counties.
What is the Assessed Value of a home?
You can find your homes assessed value at the Maricopa County Assessor website. www.maricopa.gov
Why is my home assessed at a different value than my neighbor’s home?
Each year, the Assessor will send an updated assessment on the value of the home, upon which your property tax computation is based. The Assessor’s Office utilizes a combination of information, including previous sales in the neighborhood, distance from major intersections or areas zoned differently, topography, view, livable square footage, lot size and components, and more. The valuation is determined by a computer analysis of the information gathered. If you disagree with information you receive from the Assessor, you may appeal.
How often are Arizona Property Taxes collected?
The Maricopa County Treasurer sends a bill to the owner of the home or to a party designated by the owner (like a mortgage company, if you have a monthly impound for your Arizona Real Estate tax).
Remember, the Assessor determines the value of the property, and the County Treasurer, for the County in which you live, is the entity that actually bills you for your Arizona Property taxes.
All tax information and rates presented here are subject to change without notice and are for explanation purposes only. Please consult your tax advisor with questions about your property taxes.