Introduction
Understanding Arizona property taxes is essential for property owners, especially landlords, in 2025. This article focuses on the specifics of Arizona taxes, particularly property taxes, including tax rates, due dates, exemptions, and the assessment process unique to the state. With changes to rental tax laws, adjustments to how assessed values are calculated, and evolving tax rate structures across the counties, landlords must stay alert to avoid miscalculations and seize every opportunity for deductions.
Whether you own personal property, a multi-family complex, or a single residential property, this guide will walk you through exactly how property taxes are calculated in Arizona, using up-to-date laws, terms like full cash value, and tools like a property tax calculator.
What Changed in 2025?
Long-Term Rental Tax Ban
As of this fiscal year, Arizona eliminated local-level rental taxes on long-term leases. This affects thousands of homeowners and landlords, especially in densely populated areas like Maricopa County and Pima County.
Key Property Tax Concepts
Arizona property taxes are not calculated using current market value alone. Instead, the system relies on the Limited Property Value (LPV) and applies a specific assessment ratio to determine the assessed value for tax purposes.
Full Cash Value vs. LPV
Full cash value reflects the home's potential selling price.
Limited property value is a capped amount used to stabilize taxes.
The assessed amount is calculated from LPV × assessment ratio (10% for residential).
How to Calculate Property Tax
Determine limited property value from the county.
Multiply LPV by the assessment ratio (typically 10%).
Multiply that by your total tax rate (primary + secondary + special districts).
Subtract any property tax exemptions.
The result is your annual tax bill.
County-Specific Considerations
Each county applies its own millage rates. Maricopa County and Pinal County often have higher tax rates, while rural counties like La Paz, Mohave, and Yavapai may offer lower taxes. It's important to verify your jurisdiction's rates through the Arizona Department of Revenue or the county assessor's site.
Payment and Due Dates
Arizona property taxes are paid in two installments each year. The first installment is due October 1 of the current tax year, while the second is due March 1 of the following year. If either due date falls on a federal holiday, the deadline extends to the next business day.
Best Practices for Landlords
Review your assessed value annually.
Compare with similar residential properties in your area.
Appeal if you believe your valuation is inaccurate.
Claim all relevant exemptions.
Final Thoughts
For property owners across Arizona, from owner-occupied homes to agricultural property, navigating evolving property tax rates requires more than guesswork. By learning how property taxes work, using the right tools, and tracking updates per county, you'll save money and avoid surprises.
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