What is the property tax rate in Arizona?

Arizona's average property tax rate is 0.62%, which is low compared to the national average of 1.07%. On a $420,000 home, that's approximately $217/month in property taxes.

Arizona Mortgage Calculator 2026

Arizona experienced one of the most dramatic housing booms and corrections in the nation between 2020 and 2024. After Phoenix surged past $450,000, the market has cooled, offering buyers more negotiating leverage. Arizona's low property tax (0.62%) and warm climate continue to attract retirees and remote workers.

$420,000

Median Home Price

0.62%

Property Tax Rate

Low

7.25%

Avg 30-yr Rate

$2,626

Est. Monthly (PITI)

Calculate Your Arizona Mortgage Payment

Pre-filled with Arizona averages — adjust any value to match your situation.

Purchase Price ($)

Down Payment (%)

= $84,000 down

Annual Interest Rate (%)

Loan Term (years)

Monthly Tax ($)

Monthly Insurance ($)

Estimated Monthly Payment Breakdown

Based on $420,000 home price, 20% down, 30-year fixed at 7.25%.

Principal & Interest

$2,292/mo

Property Tax

$217/mo

Homeowners Insurance

$117/mo

Total (PITI)

$2,626/mo

Arizona Property Taxes & Income Tax

Arizona's 0.62% property tax rate is well below the national average. Residential properties are assessed at 10% of full cash value. Arizona is a community property state, and the state income tax was reduced to a flat 2.5% in 2023.

ℹ️ Community Property State — Arizona is a community property state. Assets acquired during marriage are generally owned equally by both spouses, which affects mortgage applications.

Arizona Homeowners Insurance

🔥Wildfire Risk

Wildfire risk is significant in forested areas around Flagstaff and Prescott. Phoenix metro insurance averages $1,200–$1,600/year. Monsoon season brings flash flooding risk in low-lying areas. Budget $100–$135/month.

Arizona Housing Market Overview

Phoenix saw dramatic appreciation during 2020–2022 followed by a correction in 2023–2024. The market has stabilized with more inventory and less competition. Scottsdale and Paradise Valley remain premium markets. Tucson offers significantly more affordable options.

Frequently Asked Questions

What is the average mortgage payment in Arizona?

Based on Arizona's median home price of $420,000, a 20% down payment, and a 30-year fixed rate of 7.25%, the estimated total monthly payment (PITI) is approximately $2,626/month.

What is the conforming loan limit in Arizona?

The conforming loan limit in Arizona is $766,550. Loans above this amount are jumbo loans requiring stronger credit and larger down payments.

Can I get a USDA loan in Arizona?

Yes — Arizona has USDA-eligible rural areas where qualifying buyers can purchase a home with zero down payment. Use the USDA eligibility map to check specific addresses.

Are VA loans available in Arizona?

Yes — eligible veterans, active-duty service members, and surviving spouses can use VA loans in Arizona with no down payment and no PMI. The VA loan limit in Arizona is $766,550.

Arizona Loan Limits

Conventional$766,550

FHA$472,030

VANo limit (full entitlement)

Jumbo starts at$766,551

Arizona Homebuyer Programs

Home Plus Program

Arizona Industrial Development Authority

Down payment assistance of 3–5% of the loan amount combined with a 30-year fixed-rate mortgage.

Learn more →

Loan Types Available

✓Conventional (30-yr, 15-yr, ARM)

✓FHA (3.5% down)

✓VA (0% down for veterans)

✓USDA (0% down, rural areas)

Compare Neighboring States

California0.73% tax Nevada0.60% tax Utah0.58% tax Colorado0.51% tax New Mexico0.80% tax

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