Arizona real estate: property tax, closing costs & insurance
Arizona’s Limited Property Value system caps annual assessment growth at 5% and uses only a 10% assessment ratio for residential property, producing one of the lowest effective property tax rates among the states this calculator covers.
Property tax in Arizona
The effective rate runs about 0.62% of assessed value. Residential property is assessed at 10% of market value before that rate applies, so the millage number quoted locally is not applied to the full price. LPV capped at 5%/yr; 10% assessment ratio for residential. Annual assessment growth is capped at 5% for an owner-occupant.
Transfer tax & closing costs
No transfer tax; $2 affidavit fee. Recording runs a flat $30. Title insurance is customarily paid by the seller, with a minimum owner’s premium of $300.
Insurance & capital gains
Low catastrophe exposure; monsoon flash-flood zones. Flat 2.5%.
Worked example: a $350,000 ARV flip in Arizona
Six-month hold, $45,000 rehab, 15% target profit margin, all-cash. This is the same reverse waterfall the calculator runs — see it live for your actual property.
- After-repair value$350,000
- Rehab budget−$45,000
- Closing costs — acquisition−$5,875
- Closing costs — disposition−$20,150
- Holding costs, 6 months−$2,276
- Target profit, 15%−$52,500
- Maximum Allowable Offer$224,200
If you’re investing
Arizona has no transfer tax at all (just a small affidavit fee), so a fast flip here loses less to acquisition and disposition friction than in almost any other state — model your target margin against holding costs, which matter proportionally more.
If this is your home
The 5% Limited Property Value cap protects you from tax-bill shocks after a hot market year, but it resets in a way similar to other capped states — confirm the current LPV with the county assessor rather than assuming it equals the market value you paid.
Best suited for: Flippers and short-hold investors, thanks to near-zero transfer tax and a low, capped property tax base.
Arizona FAQ
Does Arizona have a real estate transfer tax?+
No. Arizona charges only a small flat affidavit fee (around $2) recorded with the deed — there is no percentage-based state or county transfer tax.
What is Limited Property Value in Arizona?+
It’s the capped assessed value used to calculate property tax, which can rise at most 5% per year regardless of market value changes, with residential property assessed at 10% of that LPV.
See the exact number for your Arizona property
Free for your first three properties. No credit card.
Other state guides
Sources: state and county assessor publications, state department of revenue transfer-tax schedules, and title-rate manuals filed with each state’s insurance regulator, effective 2025-01-01. Figures are estimates for planning purposes, not tax or legal advice — confirm with a licensed professional before closing. How the calculator works