Why does the seller's prior property tax not transfer to me?

Arizona's Limited Property Value (LPV) is capped at 5% annual growth for owner-occupied primary residences. When the property transfers, the LPV resets to current market value for the new owner. The seller's prior-year tax was calculated on capped LPV that was likely meaningfully below current market value. Your first-year tax will be based on the new uncapped value. This resets the cap clock, so future growth is capped at 5%/year going forward.

When are property taxes due in Maricopa County?

Property taxes are due twice yearly, first half by November 1 (delinquent November 2), second half by May 1 (delinquent May 2). Most buyers pay through their mortgage escrow account, with the lender remitting payment from monthly impound. If you pay cash for the home, you pay property tax directly to Maricopa County Treasurer.

What about property tax for second homes or rental properties?

Non-owner-occupied properties (second homes, investment rentals) do not benefit from the 5% LPV cap, they are reassessed annually based on current market value. The differential matters substantially for long-term holds. If you are buying a second home, plan for higher long-term property tax growth than if owner-occupied.

Are there property tax exemptions for seniors?

Arizona has a Senior Property Valuation Protection Program (Senior Freeze) for qualifying owner-occupants 65+ with income below specified thresholds. The program freezes the LPV at the current value for as long as the senior owns and occupies the home. Application is through Maricopa County Assessor; verify current income thresholds and qualification rules during planning.

How do special-district assessments work?

Some Phoenix metro neighborhoods have additional special-district assessments, community facilities district (CFD) assessments, master-planned-community improvement assessments, or special-purpose-district fees. These add to the base property tax. CFD assessments are common in newer master-planned communities. Verify any additional assessments during inspection.

Can I appeal my property assessment?

Yes. Maricopa County Assessor publishes annual valuation notices typically in February-March. Property owners can appeal valuations through the Assessor's Office or to the County Board of Equalization. Appeals must be filed within specific deadlines after notice issuance. Many appeals succeed with documentation of comparable sales lower than the assessor's valuation.

How much is property tax in Maricopa County?

Effective rates tend to run roughly 0.5 to 0.8 percent of full cash value depending on the city and any special-district overlays, which is meaningfully lower than states like Texas, Illinois (Cook County), or New Jersey. Your actual bill depends on the specific property, so I pull the real tax detail for a given home and would suggest confirming with a tax professional.

Is property tax in Arizona lower than other states?

Arizona broadly has one of the more accessible property tax structures in the country, with effective rates generally below many higher-tax states. That said, your specific figure depends on the city and district overlays, so I would rather show you the real number for a property than rely on the general rule.

What is the 5 percent assessment cap in Maricopa County?

Arizona applies an annual assessment cap on owner-occupied primary residences, around 5 percent, which limits how fast the taxable value can rise year to year and provides long-term protection. How it applies depends on your situation, so I would point you to a tax professional to confirm the specifics for your case.

Why does my Maricopa County tax bill differ from my neighbor's?

Bills vary with the city, special-district overlays, the property's assessed value, and whether it is an owner-occupied primary residence subject to the assessment cap. Because those factors differ parcel to parcel, I pull the actual tax detail for a specific home rather than assuming it matches a nearby property.

How do I estimate property taxes before buying in Maricopa County?

Start with the property's full cash value and the applicable rate for its city and districts, then account for the owner-occupied status, though the cleanest path is pulling the actual current tax detail for that parcel. I do that for any home you are considering and would suggest a tax professional confirm your projection.

Guide

The Maricopa County Property Tax Guide

Name: Jon Hegreness , Howe Realty
Address: 9059 W Lake Pleasant Pkwy, B-200, Peoria, AZ, 85382, US
Telephone: (623) 826-0888
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The short version

If you are reading this, you are trying to understand what property tax actually costs in Maricopa County. Arizona has one of the more accessible property tax structures in the U.S. Effective rates run roughly 0.5% to 0.8% of full cash value depending on the city and special-district overlays, meaningfully lower than Texas, Illinois Cook County, or New Jersey. The 5% annual assessment cap on owner-occupied primary residences provides additional long-term protection.

At a glance

Typical effective rate (% of full cash value): 0.5% to 0.8%
Annual LPV increase cap (owner-occupied primary): 5%
Tax payment due: Twice yearly
LPV on sale: Resets to current market value

How Maricopa County Property Tax Actually Works

Arizona property tax has two layers: Primary Property Tax (funds operational state and county government) and Secondary Property Tax (funds bond debt and special districts). The combined effective rate runs roughly 0.5% to 0.8% of full cash value depending on city and overlay districts.

The Maricopa County Assessor establishes Full Cash Value (FCV) and Limited Property Value (LPV) annually. FCV represents market value. LPV is calculated under Arizona's assessment-cap rules, for owner-occupied primary residences, LPV cannot increase by more than 5% per year regardless of FCV growth. This provides meaningful long-term tax protection for owner-occupants.

Property tax is typically calculated against LPV (the capped value), not FCV (market value). For long-tenured owner-occupants, this differential can be substantial, a home that has appreciated 50% over 5 years may carry tax burden based on a value 25 to 30% lower than current market value because of the 5% annual cap.

What Phoenix Metro Buyers Should Expect

Headline expectations for Maricopa County property tax across the Phoenix metro: typical effective rate 0.5% to 0.8% of full cash value (varies by city); a 5% annual LPV increase cap on owner-occupied primary residences; tax payment due twice yearly (half each); and LPV resets to current market value when the property changes hands.

Effective Rate by Sub-Market

Town of Paradise Valley (85253)

Paradise Valley typically has the lowest effective property tax in the Phoenix metro, around 0.5% to 0.6% of full cash value. PV's incorporated-town status with limited municipal services keeps the millage rate low.

City of Scottsdale (85251, 85254, 85255, 85258, 85259, 85260, 85262)

Scottsdale effective property tax typically runs 0.6% to 0.7% of full cash value. Some master-planned communities (DC Ranch, Silverleaf) have additional special-district assessments that add 0.1 to 0.2% to the effective rate.

Town of Carefree (85377)

Carefree effective property tax typically runs 0.6% to 0.7% of full cash value. Some master-planned communities (Mirabel, Whisper Rock) have private-club assessments separate from property tax.

City of Phoenix (varied zips)

Phoenix effective property tax typically runs 0.7% to 0.8% of full cash value depending on neighborhood. North Phoenix (Desert Ridge, Anthem) typically lower than central Phoenix.

Town of Cave Creek (85331)

Cave Creek effective property tax typically runs 0.6% to 0.7% of full cash value. Some unincorporated parcels in adjacent areas have different millage rates.

My Honest Take

Maricopa County property tax is meaningfully accessible vs. high-tax states. Buyers relocating from Texas, Illinois, New Jersey, or California often see their property tax burden cut by 50 to 70% on equivalent-value purchases. The 5% annual assessment cap provides additional long-term protection. The math is genuinely buyer-favorable.

The reset-on-sale rule is meaningful. When a long-tenured owner sells their home, the LPV resets to the current market value for the new owner, so the new owner's first-year property tax is calculated on the higher current value rather than the prior owner's lower capped value. This is normal and expected; verify your projected first-year property tax during purchase due diligence rather than assuming the seller's prior-year tax will continue.

After 24 years working Maricopa County buyers, my advice: budget your projected first-year property tax based on full purchase price, not prior-year property tax. After year one, the 5% annual cap kicks in and provides protection against runaway tax growth. The long-term math is genuinely favorable for owner-occupants.

Sources

Maricopa County Assessor's Office published rate tables and valuation methodology; Arizona Department of Revenue property tax guidance; Arizona Revised Statutes Title 42 (Taxation); City of Phoenix, City of Scottsdale, Town of Paradise Valley, Town of Carefree, Town of Cave Creek published millage rates.

Common questions

Why does the seller's prior property tax not transfer to me?: Arizona's Limited Property Value (LPV) is capped at 5% annual growth for owner-occupied primary residences. When the property transfers, the LPV resets to current market value for the new owner. The seller's prior-year tax was calculated on capped LPV that was likely meaningfully below current market value. Your first-year tax will be based on the new uncapped value. This resets the cap clock, so future growth is capped at 5%/year going forward.
When are property taxes due in Maricopa County?: Property taxes are due twice yearly, first half by November 1 (delinquent November 2), second half by May 1 (delinquent May 2). Most buyers pay through their mortgage escrow account, with the lender remitting payment from monthly impound. If you pay cash for the home, you pay property tax directly to Maricopa County Treasurer.
What about property tax for second homes or rental properties?: Non-owner-occupied properties (second homes, investment rentals) do not benefit from the 5% LPV cap, they are reassessed annually based on current market value. The differential matters substantially for long-term holds. If you are buying a second home, plan for higher long-term property tax growth than if owner-occupied.
Are there property tax exemptions for seniors?: Arizona has a Senior Property Valuation Protection Program (Senior Freeze) for qualifying owner-occupants 65+ with income below specified thresholds. The program freezes the LPV at the current value for as long as the senior owns and occupies the home. Application is through Maricopa County Assessor; verify current income thresholds and qualification rules during planning.
How do special-district assessments work?: Some Phoenix metro neighborhoods have additional special-district assessments, community facilities district (CFD) assessments, master-planned-community improvement assessments, or special-purpose-district fees. These add to the base property tax. CFD assessments are common in newer master-planned communities. Verify any additional assessments during inspection.
Can I appeal my property assessment?: Yes. Maricopa County Assessor publishes annual valuation notices typically in February-March. Property owners can appeal valuations through the Assessor's Office or to the County Board of Equalization. Appeals must be filed within specific deadlines after notice issuance. Many appeals succeed with documentation of comparable sales lower than the assessor's valuation.
How much is property tax in Maricopa County?: Effective rates tend to run roughly 0.5 to 0.8 percent of full cash value depending on the city and any special-district overlays, which is meaningfully lower than states like Texas, Illinois (Cook County), or New Jersey. Your actual bill depends on the specific property, so I pull the real tax detail for a given home and would suggest confirming with a tax professional.
Is property tax in Arizona lower than other states?: Arizona broadly has one of the more accessible property tax structures in the country, with effective rates generally below many higher-tax states. That said, your specific figure depends on the city and district overlays, so I would rather show you the real number for a property than rely on the general rule.
What is the 5 percent assessment cap in Maricopa County?: Arizona applies an annual assessment cap on owner-occupied primary residences, around 5 percent, which limits how fast the taxable value can rise year to year and provides long-term protection. How it applies depends on your situation, so I would point you to a tax professional to confirm the specifics for your case.
Why does my Maricopa County tax bill differ from my neighbor's?: Bills vary with the city, special-district overlays, the property's assessed value, and whether it is an owner-occupied primary residence subject to the assessment cap. Because those factors differ parcel to parcel, I pull the actual tax detail for a specific home rather than assuming it matches a nearby property.
How do I estimate property taxes before buying in Maricopa County?: Start with the property's full cash value and the applicable rate for its city and districts, then account for the owner-occupied status, though the cleanest path is pulling the actual current tax detail for that parcel. I do that for any home you are considering and would suggest a tax professional confirm your projection.

What to do next

The first call is a real opinion, not a sales pitch

If this is the right fit, the next move is a short conversation about your timeline, budget, and the life you are building toward. If it is not the right fit, I will tell you that too.

Call or text (623) 826-0888 Get in touch

Meet Jon Hegreness

Jon Hegreness

REALTOR / Associate Broker · Howe Realty

AZ License BR540940000

Full-time Phoenix North Valley REALTOR and Associate Broker with 24 years in Arizona residential real estate. A negotiator and problem solver who works the way you would want a friend in the business to work: direct, on your side, and steady through the parts that get complicated.

Call (623) 826-0888 Get in touch