See your full monthly payment — principal, interest, Arizona property tax (0.62%), insurance, and PMI. All calculated in your browser. No email required.
Arizona has one of the lowest property tax rates in the western US at 0.62% — which makes a noticeable difference on your monthly payment compared to Texas or New York buyers in similar price ranges. On a $368,000 home with 20% down, your total PITI runs about $2,302/month: $1,982 P&I, $190 property tax, and roughly $130 in homeowners insurance.
That $190/month property tax figure is what makes Arizona attractive to retirees and people relocating from California. Same sun, less traffic, and a property tax bill that's about 60% lower. The trade-off is Arizona has a state income tax — though flat at 2.5% (2023 reform), it's a fraction of what California charges.
Phoenix metro has seen significant price appreciation, but secondary markets like Tucson and the Prescott area still offer sub-$300,000 options. In Tucson, the same 0.62% rate on a $285,000 home runs $147/month in property tax — and the total PITI drops to roughly $1,800/month. Worth running the numbers in multiple markets if you have flexibility.
State-specific answers. No fluff.
On the Arizona median home price of $368,000 with 20% down and a 30-year loan at current rates, the monthly P&I is roughly $1,982. Add property tax at 0.62% ($190/month) and homeowners insurance (~$130/month) and your total PITI is approximately $2,302/month.
Arizona uses an assessed value system where residential properties are assessed at 10% of full cash value (compared to 100% in many states). The effective rate of 0.62% reflects this reduced assessed value. Arizona also has the Homeowner Rebate program that reduces primary residence property taxes by 40% on the state portion.
Arizona does not have a traditional homestead exemption, but it does have the Homeowner Rebate (formerly Senior Valuation Protection for qualifying seniors) and the owner-occupied residential assessment ratio of 10%, which significantly reduces the taxable base. Primary residences are effectively taxed at a lower rate than investment properties.
Arizona implemented a flat 2.5% state income tax rate effective January 1, 2023, replacing the previous graduated structure. This is one of the lowest flat rates in the country and a significant improvement from the prior top rate of 4.5%. Combined with low property taxes, Arizona's overall tax burden is moderate for homeowners.
Phoenix home prices appreciated sharply from 2020–2022, then corrected in 2023, and have since stabilized. The market is demand-driven by in-migration from California and other high-cost states. The key financial question is always rent vs. buy math — use this calculator to find the purchase price where your monthly cost equals or beats local rents, then decide.
Ready to run your own Arizona mortgage calculation?
Open Free Arizona Mortgage Calculator