Property taxes in Maricopa County are generally based on a home’s Limited Property Value (LPV), not its market value. The county multiplies that value by a state-set assessment ratio, then applies the combined tax rates of the school district, city, county and special districts where the home sits. Bills go out in September and are paid in two halves, and most homeowners with a mortgage pay them through an escrow account that’s built into the monthly payment.
Here is how each piece works, and how to look up the real number for a home you’re considering.
How Are Property Taxes Calculated in Arizona?
The Maricopa County Assessor sets two values for every parcel each year:
- Full Cash Value (FCV): the Assessor’s estimate of market value.
- Limited Property Value (LPV): the value property taxes are generally based on. By law, the LPV can never be higher than the FCV.
The LPV is multiplied by an assessment ratio set by Arizona law to get the assessed value. The tax rates for every district that covers the parcel are then applied to that assessed value. Subtract any credits, and that’s the bill.
Those values are set well ahead of the bill. The valuation date is January 1 of the year before the taxes are levied, and the Assessor’s Notice of Value arrives months before you see a tax statement. The Notice of Value isn’t a bill, though: the Maricopa County Treasurer calculates and mails tax statements in September.
What is limited property value?
The LPV keeps taxable values from jumping with the market. Under the Arizona Constitution, as amended by voters through Proposition 117, beginning with the 2015 tax year a property’s taxable value is the lesser of its Full Cash Value or its prior-year value plus 5%. In practice, for most homes that haven’t changed, the LPV rises by no more than 5% a year, even in years when market values climb faster.
That cap applies to value, not to your bill. Each taxing district sets its own rate, so a bill can still rise by more in a given year if rates go up or voters approve new bonds or budget overrides.
When can the LPV be recalculated?
The Assessor’s office explains that most properties follow the standard 5% rule, but certain changes trigger a recalculation instead: new construction or major improvements, demolition, lot splits or combinations, a change in how the property is used, and the loss of certain special valuation programs. A sale on its own isn’t one of those triggers, so financing a home generally doesn’t reset its LPV to the price you paid.
Primary Residence vs. Second Home: Why Classification Matters
Every residential parcel has a legal class. The Assessor describes a primary residence (legal class 3) as your main home, where you live for more than seven months of the year, and you can have only one. A home that isn’t anyone’s primary residence, such as a vacation home, falls into class 4.1, and a rented home into class 4.2.
Here’s the part that surprises people: under current Arizona law, owner-occupied homes and rentals use the same assessment ratio. The difference shows up as a credit. The state pays part of the school district tax on owner-occupied primary residences, and it appears on the bill as a line labeled “State Aid to Education.” Second homes and rentals don’t receive it, which the Assessor notes is one reason homeowners may see lower bills than similar homes that are rented or used as second homes.
What that means when you’re financing a home:
- If the seller lived in the home, the current bill likely includes the credit. If you’ll live there too, check after closing that the Assessor shows it as your primary residence.
- If the home was rented or used as a second home, the current bill may be higher than what you’ll pay once it’s classified as your primary residence.
- If it will be your second home, expect the bill to lose the credit, even if the seller’s bill showed it.
The Assessor also reviews primary-residence status by mail from time to time, so open anything from that office and respond by the deadline.
Why Two Similar Homes Can Have Different Tax Bills
Your bill adds up the rates of every district that covers your parcel: the county, your city or town, your school district, the community college district and a list of special districts. Some of those charges come from voter-approved bonds and budget overrides. In some newer master-planned communities, a community facilities district or other special district can add its own line.
That’s why two homes at the same price, one in Mesa and one in Gilbert, or on opposite sides of a school district boundary in Phoenix, can carry noticeably different bills. If you’re comparing homes across the East Valley, compare the actual bills, not just the prices.
How to Look Up a Home’s Property Taxes
You don’t have to guess. Before you make an offer, look up the parcel on the county’s own websites:
- Maricopa County Assessor (mcassessor.maricopa.gov): search by address or parcel number to see the Full Cash Value, the Limited Property Value and the legal class.
- Maricopa County Treasurer (treasurer.maricopa.gov): search by parcel number, address or owner name to see the current bill, the district-by-district breakdown and whether the taxes are paid.
When you read the bill, check the legal class and whether the State Aid to Education credit is applied. If the seller’s bill includes a credit you won’t receive, or is missing one you will, adjust your estimate. I’m glad to read through it with you.
When Are Maricopa County Property Taxes Due?
Arizona law (A.R.S. § 42-18052) sets a two-installment schedule:
| Installment | Due | Delinquent after |
|---|---|---|
| First half | October 1 | 5 p.m. on November 1 |
| Second half | March 1 of the following year | 5 p.m. on May 1 |
If a delinquency date falls on a weekend or legal holiday, it moves to 5 p.m. on the next business day. Late payments accrue interest, but if you pay the full year’s taxes by December 31, no interest is charged on the first half. Very small bills follow a different rule. Always confirm the current year’s dates on the Treasurer’s website.
If your mortgage includes an escrow account, your servicer pays these installments for you. Still, glance at each bill so you can catch a wrong classification or a missing credit.
How Property Taxes Work in Your Mortgage Payment
Many loans include an escrow account (sometimes called an impound account). Part of each monthly payment goes into it, and your loan servicer pays your property taxes and homeowners insurance from it.
At closing
Arizona taxes for a calendar year are billed in September and paid in two halves, the second the following March. Because of that timing, the escrow company typically prorates the year’s taxes between you and the seller at closing, as your contract directs. Your lender also collects an initial deposit to start your escrow account, sized so there’s enough on hand when the next installment comes due, so the amount depends partly on the month you close. My guide to Arizona closing costs shows where these items appear.
The annual escrow analysis
Once a year, your servicer reviews the account. Federal rules (Regulation X under RESPA) set the framework:
- Cushion: the servicer may hold a cushion of up to one-sixth of the year’s estimated escrow disbursements.
- Shortage: if taxes or insurance went up and the account comes up short, the servicer can collect the difference. For a shortage equal to a month’s escrow payment or more, it can be spread over at least 12 months. Many servicers also let you pay it in one lump sum.
- Surplus: if the account has a surplus of $50 or more, the servicer must refund it within 30 days of the analysis.
So your monthly payment can change even on a fixed-rate loan. Principal and interest stay the same; the escrow portion moves with your taxes and insurance.
Why taxes can change after you move in
- Classification. The home’s legal class changes after the sale, adding or removing the State Aid credit.
- New construction. On a newly built home, the first bills may reflect a value set before the house was finished, sometimes the lot alone. Once the Assessor values the completed home, the bill can rise, and an escrow shortage can follow.
- Rates and values. District rates change, and the LPV can rise by up to 5% a year until it reaches the Full Cash Value.
If you’re financing a new build, ask how the taxes in your estimate were calculated. I always show you how I arrived at mine.
How Lenders Estimate Property Taxes When You Qualify
Lenders count property taxes in your monthly housing payment, along with principal and interest, homeowners insurance and any mortgage insurance, when they calculate your debt-to-income ratio. On a resale, the estimate usually starts from the current tax bill, adjusted for anything we know will change, such as the classification. On new construction, where the current bill may reflect only the lot, lenders typically estimate taxes on the finished home so you aren’t qualified on an artificially low figure.
HOA dues are separate. They don’t appear on your property tax bill and usually aren’t paid through escrow (you pay the association directly), but lenders still count them in your housing payment. My guide on how much house you can afford in Arizona walks through the full payment.
Key takeaway: Look up the parcel, not just the price. The Assessor shows the value and classification, the Treasurer shows the actual bill, and escrow turns it into a monthly amount that can change once a year.
Relief Programs Worth Knowing About
The Assessor’s office runs valuation relief programs, each with its own eligibility rules and deadlines. Examples include a valuation protection option for some homeowners 65 and older who meet income limits, and an exemption for certain veterans with service-connected disabilities. The Assessor’s website lists the current programs and how to apply.
Next Steps
Property taxes are one of the easiest parts of a payment to get wrong, and one of the easiest to check. When we talk through a home you like, I’ll pull the parcel, look at the classification and build the taxes into a realistic payment. If you’re just getting started, read my guide to buying a home in Phoenix, or get pre-qualified and we’ll run your numbers together.
This article is general information, not tax or legal advice. Tax rules, rates and dates change, so confirm details with the Maricopa County Assessor and Treasurer, and talk with a tax professional about your own situation.
