Understanding Property Taxes

For first-time home buyers, it's one thing to understand that property taxes exist and another to understand how they function and what you should expect when it comes to homeownership. Here are some of the basics:
What Are Property Taxes?
Property taxes are levies imposed by local governments on real estate properties. They are used to fund essential public services such as schools, infrastructure, and emergency services. In Arizona, these taxes are assessed annually and are based on the assessed value of your property.
The Assessment Process
In Arizona, the property tax process begins with the county assessor. Each of Arizona's 15 counties has an assessor who determines the Assessed Value of your property, with state limits on how much this can increase within a year. This valuation is typically a percentage of the property’s Full Cash Value (FCV), which is its market value.
Tax Rates
Property tax rates vary by jurisdiction. The total rate is determined by summing the rates for all the taxing districts your property falls within, including counties, municipalities, and school districts.
Understanding Your Tax Bill
Your property tax bill is computed by multiplying the Assessed Value by the combined tax rates of the taxing districts. This is further adjusted by any exemptions you might qualify for, such as the Senior Property Valuation Protection Program or the Homeowners’ Rebate Program.
Paying Your Taxes
For many homeowners, the cost of your property taxes is included in your monthly mortgage payment. Otherwise, taxes are typically due in two installments throughout the year and can be paid online, in person, or by mail to your county treasurer.
Additional Resources
Arizona Department of Revenue-Property Tax Information: Offers details on property tax rules, regulations, and resources.
Pima County Assessor's Office