Facebook
X
Pinterest
Copy Link
Arizona property taxes remain among the most predictable in the nation thanks to Proposition 117. Your tax bill is based on the Limited Property Value (LPV), which is legally capped at a 5% annual increase, regardless of how much your home’s market value skyrockets. For 2026, owner-occupied homes (Legal Class 3) are assessed at a 10% ratio.
Protecting Your Equity from Tax Spikes
One of the biggest questions I get from out-of-state buyers is: “Will my taxes double if my home value doubles?” In Arizona, the answer is a resounding No. ### How Prop 117 Works for You:
-
FCV vs. LPV: The “Full Cash Value” is what your home could sell for. The “Limited Property Value” is what you are taxed on.
-
The 5% Cap: Even if the Phoenix market sees 20% growth in a single year, your LPV (the taxable amount) cannot grow by more than 5%. This provides incredible long-term stability for homeowners on a fixed budget.
-
Owner-Occupied Savings: If you live in the home as your primary residence, you qualify for Legal Class 3 status, which gives you the lowest assessment ratio available.
Closing Tip: If you recently purchased a home and see a “Notice of Value” that seems high, you have 60 days to file an appeal. Always check that your “Property Use” is correctly listed as owner-occupied!
