Why is Phoenix's effective property tax rate only about 0.66%?

Arizona taxes only the assessed value, which for owner-occupied homes is 10% of market value. The combined primary and secondary levies applied to that 10% work out to roughly 0.66% of the home's full market value, well below the US average.

What is the assessment ratio?

The assessment ratio is the fraction of market value that is actually taxed. In Arizona owner-occupied and rental homes use a 10% ratio, while most commercial property uses 16%. The combined tax rate is then applied to that smaller assessed value.

What is the 1% owner-occupied cap?

The Arizona Constitution limits the primary property tax on an owner-occupied home to 1% of its limited (market) value. This calculator caps the owner-occupied estimate at that 1% ceiling so the figure stays realistic.

Does this include school and special district levies?

Yes, in aggregate. The ~0.66% effective rate already bundles the city, county, school, and community-college levies that make up a typical Phoenix consolidated tax bill, rather than itemizing each district.

Will my real bill match exactly?

Treat the result as an estimate. Actual bills vary by exact tax area code, voter-approved bonds, and the Limited Property Value the Assessor uses, which can differ from market value. Always confirm with your official Maricopa County statement.

Phoenix Property Tax Estimator

Phoenix homeowners enjoy one of the lower effective property tax rates among large US cities — about 0.66% of a home’s market value. This estimator applies Arizona’s actual assessment mechanics so the figure reflects how your bill is really built, not a flat percentage guess.

How it works

Arizona never taxes the full market value directly. It first multiplies by an assessment ratio, then applies the combined tax rate to that smaller assessed value:

assessed value = market value × assessment ratio   (10% residential)
annual tax     = assessed value × combined rate per $1 of assessed value

Because owner-occupied homes are assessed at 10% and the combined Phoenix levy is about 6.6% of assessed value, the net effect is roughly 0.66% of market value. The Arizona Constitution then caps the owner-occupied primary tax at 1% of the limited value, which this tool enforces.

Example and tips

A $420,000 owner-occupied Phoenix home has an assessed value of $42,000 at the 10% ratio. Applying the combined rate yields about $2,772 per year — close to 0.66% of market value. Commercial property is assessed at 16%, so the same dollar value carries a materially higher bill. If you qualify for the Arizona widow, widower, or disabled exemption, toggle it on to reduce the taxable assessed value. Always verify against your official Maricopa County statement, since voter-approved bonds and your specific tax area can shift the number.