How is Arizona property tax calculated?

Arizona multiplies your Limited Property Value by the assessment ratio (10% for residential property) to get the assessed value, then multiplies that by the combined tax rate, which is expressed per 100 dollars of assessed value.

What is Limited Property Value?

The Limited Property Value (LPV) is a capped figure the county assessor uses for primary tax calculations. By law it can rise no more than 5% per year, so it is usually lower than the full cash (market) value of your home.

Why is the assessment ratio only 10%?

Arizona assesses residential (Class 3 and Class 4) property at 10% of its Limited Property Value. Commercial and other property classes use higher ratios such as 15% or 16%, which is why this estimator targets homeowners.

What is the owner-occupied rebate?

Arizona offers a state-funded homeowner rebate that reduces the school-district portion of the primary tax on an owner-occupied primary residence, capped at 600 dollars per year. The estimator applies this cap when you check the box.

How accurate is this estimate?

It is a close estimate. Actual bills depend on your exact LPV, the many overlapping district rates in your area, and special assessments. Check your assessor's notice and county treasurer for the precise combined rate.

Arizona Property Tax Estimator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

Arizona property tax works differently from many states: it is based on a capped Limited Property Value (LPV), not full market value, and residential property is assessed at just 10% of that value. This estimator combines your LPV, the 10% residential assessment ratio, and your county’s combined tax rate to project your annual bill — with an optional owner-occupied rebate.

How it works

The calculation runs in three steps:

Assessed value. Multiply the Limited Property Value by the 10% residential assessment ratio. A $300,000 LPV gives a $30,000 assessed value.
Gross tax. Arizona tax rates are quoted per $100 of assessed value. Multiply assessed value by (rate ÷ 100). At a combined rate of 9.5, a $30,000 assessed value yields $2,850.
Owner-occupied rebate. If the home is your primary residence, Arizona’s state homeowner rebate reduces the bill, capped at $600 per year. The estimator subtracts up to that amount.

The formula is: tax = (LPV × 0.10) × (rate ÷ 100) − rebate.

Tips and example

For a $350,000 LPV home in a county with a combined rate of 10.0 per $100: the assessed value is $35,000, gross tax is $3,500, and with the owner-occupied rebate the net is about $2,900. Rates vary widely between counties and even between districts within a county, so use the exact combined rate from your assessor’s valuation notice for the most accurate result.

Remember the LPV is usually below market value because Arizona caps its annual growth at 5%. If you only know your market value, your true LPV — and your tax — will typically be lower.