Estimate your monthly payment on an Arizona home — principal & interest, property taxes, and insurance — then see how Arizona actually taxes the home, from the Class 3 assessment ratio to the automatic homeowner rebate.
Enter the price, down payment, rate, and term, plus your best annual tax and insurance figures. The payment updates as you type. The defaults below use Arizona's approximate effective owner-occupied tax rate (~0.48% of the price) so you start from a realistic Arizona number, not a national average.
Estimated monthly payment
$2,655.44
Principal & interest, taxes, and insurance combined.
Estimate only — not a quote, rate offer, or loan approval. Excludes PMI, HOA dues, and other costs that may apply to your loan. Taxes and insurance are your inputs divided by 12; your actual escrow amounts will differ.
Arizona does not tax your home the way most states do. Six things drive your bill — and two of them routinely surprise buyers moving in from out of state.
The home you live in is Class 3 residential property, and it is assessed at 10% of its Limited Property Value (LPV) — not 10% of what you paid, and not its full market value. A home with a $300,000 LPV carries a $30,000 assessed value, and tax rates are applied to that smaller number.
Your LPV can increase by no more than 5% per year, and it can never exceed the property's full cash value. Just as important: buying the home does not reset the LPV to your purchase price. You largely inherit the seller's LPV path, which is one reason two similar homes on the same street can carry very different tax bills.
There is nothing to apply for: the rebate appears automatically on your tax bill. The state pays 50% of the qualifying school primary tax (the QTR levy) on Class 3 property, capped at $600 per parcel. Rental homes are Class 4 property and do not get the rebate.
Despite the name, Arizona's homestead exemption is creditor and bankruptcy protection for your home equity. It does not reduce your assessed value and does not lower your property tax bill — a common point of confusion for buyers relocating from states where it does.
There is no single statewide property tax rate in Arizona. Your bill depends on the tax district and school district the property sits in. As a rough orientation only, the effective rate for owner-occupied homes works out to approximately 0.48% of value — treat that as an approximation, not a quote for any specific property.
Homeowners age 65 and older who meet income limits can apply with their county assessor for Senior Valuation Protection, which freezes the home's LPV. With the assessed value held steady, a rising market does not push the tax bill up the way it otherwise could.
Buying an investment property instead? Rentals are Class 4, not Class 3 — no homeowner rebate, and a different tax picture. Run the numbers on the DSCR Calculator to see whether the rent covers the debt.
The same math the estimator runs, written out in full — plus the LPV and rebate checks that show how the Arizona pieces fit together.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $2,918.69 |
| Property taxes ($2,400 / yr) | $200.00 |
| Homeowner's insurance ($3,000 / yr) | $250.00 |
| Total monthly payment | $3,368.69 |
Adam is licensed in Arizona and works with borrowers statewide. The estimator's mechanics are the same everywhere in the state — what changes is the price point, the property class, and the district your home sits in.
The state capital and largest market. Tax and school districts vary widely across the city, so judge a home by its actual tax bill, not a citywide average.
Higher price points mean larger loan amounts — jumbo and high-balance options come up often — while the Class 3 and LPV rules work exactly the same way.
A large East Valley city with a broad range of price points and neighborhoods. Swap in the specific home's taxes and insurance for a payment picture you can act on.
Southern Arizona's hub, in Pima County, with its own mix of tax districts. The ~0.48% effective figure is only a starting point — the district decides the real bill.
A high-elevation mountain market where second homes are common. Remember that a rented home is Class 4 — no homeowner rebate — so occupancy changes the tax picture.
Straight answers on the questions Arizona buyers ask most. Tax questions are general information only — for advice on your own situation, talk with a tax professional.
An owner-occupied home is Class 3 property, assessed at 10% of its Limited Property Value (LPV). Taxing districts then apply their rates to that assessed value. There is no single statewide rate — your bill depends on your tax district and school district — but the effective rate for owner-occupied homes statewide works out to roughly 0.48% of value, and that figure is approximate.
No. A sale does not reset the Limited Property Value (LPV) to the sale price. LPV can rise at most 5% per year and can never exceed the property's full cash value, so a buyer largely inherits the existing LPV path rather than starting over at the purchase price.
The homeowner rebate appears automatically on the tax bill — there is nothing to apply for. The state pays 50% of the qualifying school primary tax (the QTR levy) on owner-occupied Class 3 property, capped at $600 per parcel. Rental homes are Class 4 property and do not get the rebate.
No. Despite the name, Arizona's homestead exemption is creditor and bankruptcy protection for your home equity — it is not a property tax break and does not reduce your tax bill.
Possibly. Under Senior Valuation Protection, homeowners age 65 and older who meet income limits can apply with their county assessor to freeze their home's Limited Property Value (LPV), which holds the assessed value steady even if market values rise.
An estimate is a starting point. Adam can price your actual scenario across 175+ wholesale lenders, confirm the tax and insurance figures for a specific property, and tell you exactly what your payment would be — no obligation.