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How Arizona property taxes are calculated

Published · 2 min read

Estimate Arizona property tax from assessed value and your local rate, and plan for it monthly.

Key facts

PlaceArizona
Sales taxState sales tax
Standard rate on file5.6%
Multiply net price by1.056
Tax share of a gross price5.3%
CurrencyUSD

Assessed value and millage

Local governments in Arizona assess property and apply a rate, often expressed in mills (dollars per $1,000 of assessed value). Divide the millage by 10 to get a percentage you can enter in the calculator.

Worked example

Here is the calculation with sample figures. Change any number in the Arizona Property Tax Calculator to run your own.

Worked example: Arizona Property Tax Calculator
Assessed value$450,000.00
Tax rate (%)1%
Annual tax$4,500.00
Monthly tax$375.00

Exemptions

Homestead, senior and veteran exemptions can lower the taxable value. Check with your county assessor.

Quick reference at 5.6%

Common amounts in Arizona, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.

AmountTax on net amountGross (net + tax)Net if amount includes tax
$10.00$0.56$10.56$9.47
$50.00$2.80$52.80$47.35
$100.00$5.60$105.60$94.70
$250.00$14.00$264.00$236.74
$500.00$28.00$528.00$473.48
$1,000.00$56.00$1,056.00$946.97
$5,000.00$280.00$5,280.00$4,734.85

How Arizona compares

Standard rates on file for other states. A difference of a few points matters most on high-value purchases and on cross-border sales.

PlaceRate on fileCompared with 5.6%
Alabama4%lower
Alaska0%lower
Arkansas6.5%higher
California7.25%higher
Colorado2.9%lower

Using the calculator step by step

  1. Open the Arizona Property Tax Calculator.
  2. Type your figures into the numbered lines. Results update as you type.
  3. Check the rate field. It starts at 5.6%; change it if a reduced rate, local surcharge or exemption applies to you.
  4. Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.

Key terms

Net amount
The amount before tax is added. On an invoice it is the figure the tax is calculated on.
Exempt supply
A sale that falls outside the tax entirely. No tax is charged and input tax usually cannot be reclaimed.
Withholding
Tax deducted at source, by an employer or payer, before the money reaches you.
Reduced rate
A lower rate that applies to specific categories, often essentials such as food, medicine or books.
Deduction
An amount subtracted from taxable income. It saves tax equal to the deduction times your marginal rate.

Common mistakes to avoid

Run your own numbers. The Arizona Property Tax Calculator updates as you type and shows the formula it uses.

Frequently asked questions

How do I convert a millage rate to a percentage?

Divide the mills by 10. For example, 20 mills is 2%.

Who sets property tax rates in Arizona?

Local taxing authorities such as counties, cities and school districts.

This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.

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