What first time home buyers should know about Phoenix property tax

If you’re looking at Phoenix real estate listings and hinking of buying a home in Phoenix for the first time, it’s a great idea to learn about the different costs that come with owning a home. Like the cost of property taxes and how Arizona property taxes work. Having an estimate of your potential property taxes can help you prepare for all the costs of home ownership before you go through the process of buying a home in Phoenix. To help you get an idea of what you might have to pay, take a look at the following information on property taxes, calculations, deductions and penalties.

How Are Property Taxes Calculated?

In Maricopa County, where Phoenix is located, property taxes are determined by the assessed value of a homeowner’s property. The Maricopa County Assessor determines the value of your home by examining a variety of factors, including the values of previous home sales in your area, square footage, zoning, lot sizes and many other elements pertaining to your home’s amenities.

To calculate the final amount of your property taxes, city officials will also take into account the tax rate for your area, which will also vary depending on many factors, most notably your school district.

Phoenix Tax Exemptions

If you own Phoenix real estate, you may be eligible for several property tax exemptions. Property owners who are permanently physically or mentally disabled can take advantage of exemptions if they have medical certification of their specific disabilities. Widows and widowers who have not remarried are also eligible for exemptions. In both of these cases, homeowners must remain below a certain income level in order to qualify.

Consequences of Failing to Pay Property Taxes

Property taxes in Maricopa County are due in full on March 1st of each year, although homeowners also have the option of paying their taxes in two installments, with the first installment due on October 1st. After the 1st of May, if your taxes still haven’t been paid then they will be considered officially delinquent.

Homeowners who continue to avoid paying their property taxes will not only owe the original amount of back taxes, but they will also incur interest charges at a rate of 16% per year, which is prorated monthly. After thirteen months, homeowners will be responsible for an advertisement fee to pay for the notice of a tax lien that the city will sell for the property. If homeowners still fail to pay the taxes after three years, the owner of the tax lien can then put the property up for auction.

While Phoenix real estate tax laws can contain a great deal of technical and legal information, it’s still important to have a good overview of them when you’re considering buying a home in Phoenix. Keep this information in mind and talk to your real estate agent about any tax considerations in specific areas as you continue to search for your perfect Phoenix home.

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