If you buy a home in Phoenix, your property tax bill depends on the county assessor’s valuation, the taxing districts where the home is located and how the property is classified. One of the most important things for a new owner is making sure the home is recorded as a primary residence if that is how it is used. This guide explains the basics for Maricopa County. It is general information, not tax advice, so confirm details with the assessor and treasurer.
Key takeaways
- The Maricopa County Assessor classifies residential property by how it is used, and a primary residence is classified differently from a rental or second home.
- According to the assessor, a primary residence is your one main residence where you or a qualified family member lives more than seven months of the year.
- You can have only one primary residence, and the assessor regularly reviews classifications.
Who does what
In Arizona, the county assessor values property and assigns its legal class, and the county treasurer sends the bills and collects payments. The tax rates come from the various districts that serve the property, such as the city, school district, community college district and others. That is why two similar homes in different parts of the Valley can have different tax bills.
What counts as a primary residence
According to the Maricopa County Assessor, a primary residence is your one and only main residence, where you or a qualified family member lives more than seven months out of the year. You can have only one primary residence no matter how many homes you own. The assessor is required to regularly review residential property to confirm how it is being used.
Primary residence vs rental or second home
| Primary residence | Rental or second home | |
|---|---|---|
| Who lives there | You or a qualified family member, 7+ months a year | Tenants, or the owner part of the year |
| Legal class | Owner-occupied residential | Other residential class |
| What to do | Confirm the class with the assessor | Follow the assessor’s rules for rentals |
How to check or update your status
When a home is sold, the buyer’s intended use is typically recorded through the paperwork filed at closing. After you buy, look up the property on the assessor’s website and check its legal class. If it does not match how you use the home, the assessor has a process and form to request a residential legal class change. Keep proof that the home is your main residence, such as your driver license, vehicle registration and voter registration at that address.
Tip: Check your property’s legal class on the assessor’s website a few months after closing. It takes a few minutes and can catch a mistake before it affects a tax bill.
Rental property owners
If you keep a home in Phoenix as a rental, the assessor classifies it differently, and Arizona has registration rules for residential rental property. Check the assessor’s current requirements for rental registration. Landlords should also understand their obligations under the state landlord and tenant act. Our guide to Renting in Phoenix: Deposits, Leases and Tenant Basics covers the tenant side.
Understanding your bill
- Your notice of value from the assessor shows the valuation and legal class.
- Your tax bill from the treasurer shows the amounts owed to each district.
- Many owners pay through their mortgage escrow account.
- If you disagree with a valuation or class, there is an appeal process with deadlines.
- Rates and rules can change each year, so read each notice.
Moving from another state
If you still own a home in your previous state, think about which home is truly your primary residence. The same home should not be treated as a primary residence in two places. A tax professional can help if you split time between states. For state income tax in the year of your move, see Arizona State Income Tax for New Residents.
Buying mid-year
Property taxes in Arizona are billed on a yearly cycle, and the tax for the year is usually split between buyer and seller at closing. Your closing documents show how that was handled. If the previous owner used the home differently, for example as a rental, the classification for the current year may not yet reflect your use. That is another reason to check the legal class after closing and follow the assessor’s process if it needs to change.
Common mistakes
The most common mistake is never checking the legal class after buying. Another is renting out a former primary residence without telling the assessor. Owners sometimes also miss appeal deadlines because they do not read the notice of value. Put the assessor’s and treasurer’s key dates in your calendar each year.
Frequently asked questions
Who sets my property tax rate?
The districts that serve your property, such as the city, school district and others, set rates that apply to the assessed value.
Can I have two primary residences?
No. According to the Maricopa County Assessor, you can have only one primary residence.
Where do I pay my tax bill?
The Maricopa County Treasurer collects property taxes. Many owners pay through their mortgage escrow.
Weighing whether to buy at all? Read Renting vs Buying a Home in Phoenix.