Arizona is in the 90th percentile for property taxes. Homeowners in Maricopa County, where Scottsdale and Phoenix are located, pay considerably less in property taxes than the rest of the country.
But navigating property taxes can be tricky when moving to a new city or even a new state. How can you calculate your property tax so you know what you can afford? How do you make a payment?
We’ve got you covered! Here’s what you need to know about paying property tax in Arizona.
Understand How Arizona Calculates Property Tax
It’s important to understand that Arizona property tax is calculated by an Assessed Value rate, not the Market Rate. This means that real estate taxes are not based on the cash value or market value of the home. Instead, the county that Scottsdale is located in (Maricopa) has set the ratio for residential properties at 10 percent.
Know the Difference Between Assessed and Market Value
Arizonans typically pay less than other states in property taxes. By law, property tax rates cannot be higher than the estimated full cash value of the home. On average, Arizonans pay about $12/$13 per $100 of the home’s value in tax. You can calculate your property tax on the Maricopa County Assessor’s website.
Your Property Tax Rate will Change Every Year in Scottsdale
Every year, the county assessor reevaluates and changes property tax rates. The assessor looks at recent property sales, new zoning, topography, distance from important intersections, topography, residential and business square footage and more. This number is generated from a computer algorithm. If a property owner disagrees with the change in property tax, you’re allowed to file an appeal within 60 days of the notice.
Your Bills Will Be Confusing (At First)
If you live in Scottsdale, you’re expected to pay a semi-annual property tax bill. Arizona is interesting, in that it sends you two bills at once. Every September a property tax bill is mailed out, which actually contains two bills. One due in October and November, and a second due in March and May.
The state divides your property taxes into two semi-annual payments. They allow you to pay each of the two payments in two sums. Easy right? If you have the means to simply pay your annual property taxes in one payment, the more power to you. The broken-up system simply exists to help homeowners budget and ensure they will have enough time to make payments
While the assessor determines the amount of the property tax and is the person to contact for an appeal, the treasurer is the person you make the routine payments to. There is currently no system in place where you can pay a third party company to reduce your property tax fee, anything claiming to do so would be a scam.
Are you considering making a move to Scottsdale? You’ll need to partner with a real estate agency that understands the market. Click here to contact us!