Property Taxes in Arizona: Rates, Exemptions, and How They Work (2026)
TL;DR
Arizona uses two separate property values: Full Cash Value (FCV) for secondary taxes and Limited Property Value (LPV) for primary taxes. LPV is capped at 5% annual growth, protecting homeowners from rapid assessment increases. The average effective rate is about 0.55%. Arizona does not have a homestead exemption, but offers a primary residence classification with a lower assessment ratio. Appeals must be filed within 60 days of the notice of value. County assessors reassess annually.
Two Values: FCV and LPV
| Value | Used For | Growth Limit |
|---|---|---|
| Full Cash Value (FCV) | Secondary property taxes (bonds, overrides) | No cap |
| Limited Property Value (LPV) | Primary property taxes (operations) | 5% annual increase or FCV, whichever is less |
Primary taxes fund day-to-day operations. Secondary taxes fund voter-approved bonds and budget overrides. The LPV cap means your primary tax bill increases gradually even in hot markets.
Assessment Ratios
Arizona applies different assessment ratios by property type:
- Owner-occupied residential: 10% of LPV/FCV
- Rental/commercial: 15-18% depending on type
- Agricultural: 15%
- Vacant land: 15%
Exemptions
| Exemption | Benefit | Who Qualifies |
|---|---|---|
| Senior Valuation Protection | Freezes FCV at base year level | 65+, income under $44,940 (single) or $55,753 (couple), lived in AZ 2+ years |
| Disabled Veterans | Up to $4,188 off assessed value | Veterans with disability or surviving spouses |
| Widow/Widower | Up to $4,188 off assessed value | Surviving spouse |
Appeal Process
- File with the county assessor: Within 60 days of the Notice of Value (usually mailed in February-March)
- County assessor review: Informal review and potential adjustment
- State Board of Equalization/Tax Court: If unresolved, appeal to the state level
Use our free property tax analyzer to check whether your Arizona property's full cash value is accurate.
Frequently Asked Questions
What should I know about property taxes in arizona: rates, exemptions, and how they work (2026)?
Arizona uses two separate property values: Full Cash Value (FCV) for secondary taxes and Limited Property Value (LPV) for primary taxes. LPV is capped at 5% annual growth, protecting homeowners from rapid assessment increases. The average effective rate is about 0.55%.
What should I know about two values: fcv and lpv?
Primary taxes fund day-to-day operations. Secondary taxes fund voter-approved bonds and budget overrides. The LPV cap means your primary tax bill increases gradually even in hot markets.
What should I know about assessment ratios?
Arizona applies different assessment ratios by property type:
What is the process for appeal process?
Use our free property tax analyzer to check whether your Arizona property's full cash value is accurate.