If you’ve heard that Arizona taxes are low, here’s why that is.
When we work with out-of-state buyers, one of the most common remarks we hear is that our property taxes are so low. Compared to the national average of 1.07%, Arizona’s property taxes are 0.68%.
The reason our taxes are considerably lower is that Arizona has a state law that caps the tax rate on an owner-occupied home. Nationally, people pay an average of $2,500, whereas an Arizona taxpayer will only pay $1,500.
Property taxes are paid in two installments—one on October 1 of the current year and one on March 1 of the following year. They’re calculated by the limited property value of your home and its current cash value. Each year, they can’t exceed more than 5%. With properties increasing in value as fast as they are today, that means you won’t be getting penalized as hard on taxes.
If you have any questions about real estate, investments, or owner-occupied homes, please feel free to give us a call or send an email. We’d love to hear from you.