The average property tax rate for the entire United States is 1.1%. How does that compare to Phoenix property tax rates? What other pieces of information about property tax in Phoenix, Arizona are useful to know?
Read on to learn the answers to these questions.
1. How Do Phoenix Property Tax Rates Compare?
The average for Arizona property taxes is 0.72%. In a ranking of states from the highest property tax to the lowest, Arizona is on the lower end. To put this measurement into perspective, the state with the highest property tax, New Jersey, has a rate of 1.89%.
Of course, this average changes at the county levels. Phoenix, Arizona resides in the state's largest county, Maricopa. It has an average property tax rate of 0.59%.
2. How Does the Government Calculate Phoenix Property Taxes?
Tax assessors don't calculate Arizona property taxes based on each property's full cash value. Rather, they use something called the Limited Property Value (LPV). While this is based on the home's cash value, it is limited so that taxes do not increase too much when property values are increasing rapidly.
The tax rates are then applied to what is known as assessed values. These are certain percentages of the LPV. To give an example, for residential properties, the assessed value is 10% of the LPV.
Overall, these rates change each year based on the needs of each city, school district, and so on. They are based on two different types. One type funds government entities while the other funds special projects and districts.
3. How Do Phoenix Property Owners Pay Taxes?
Maricopa County's official site has all the information necessary about when and how property owners pay their property taxes. These are paid to the county and not to the state revenue department.
There are multiple payment options that Phoenix property owners can use to pay their taxes. Physical options include mailing the payment, delivering the payment to the Treasurer's Office, or dropping the payment off at a local Chase Branch. Digital options include e-checks, card payments, and bulk payments.
If your property tax value is below $100, there are two due dates for Phoenix property taxes. Half of your property taxes is due on October 1st and the second half is due on March 1st of the following year. The first half of the taxes becomes delinquent after November 1st and the second half becomes delinquent after May 1st.
Luckily, Phoenix property owners don't have to remember these dates solely on their own. The Maricopa County Treasurer sends out tax and delinquent tax statements to taxpayers regularly.
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In sum, Phoenix property taxes are fairly low due to the government's calculation methods. It is also easy to know when to pay your taxes and how much you need to pay.
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