Tempe, Arizona Property Taxes
The median property tax rate in Tempe, AZ is 0.57%, slightly higher than the state median of 0.56% but lower than the national median of 0.99%. With the median home value in Tempe at $361,800, the typical annual property tax bill amounts to $2,007, which is below the national median of $2,690. Property taxes in Tempe are calculated based on the tax assessed value, which often falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Tempe's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Tempe or another part of the city, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Tempe, Arizona Property Tax Bill Calculator
$100,000
$2,500,000
$5,000,000
Average Tax Rate
0.56%
Estimate Property Tax Bill
$1,120
Ownwell’s Tempe Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Tempe with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Tempe to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Tempe, Arizona
Property taxes in Tempe, Arizona, are vital in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Tempe is 0.57%, lower than both the Arizona state median and the U.S. national median of 0.99%. Local government entities within Tempe set these rates annually, and they can vary significantly across different neighborhoods. Each year, Tempe estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Tempe's effective property tax rate to other counties in Arizona and the national median. For comparison, the 85284 zip code has the highest median property tax rate of 0.71%, while the 85281 zip code has the lowest median tax rate of 0.52%. Understanding how these cities compare with Tempe provides valuable insights into the varying tax landscape across Maricopa County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Tempe Tax Rate
0.57%
Average Maricopa County Tax Rate
0.52%
Average Arizona Tax Rate
0.56%
Average United States Tax Rate
0.99%
Property Tax Rates Across Tempe, Arizona
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 85281 | 0.37% | 0.45% | 0.52% | 0.63% | 0.83% |
| 85282 | 0.44% | 0.49% | 0.53% | 0.58% | 0.63% |
| 85283 | 0.44% | 0.51% | 0.58% | 0.65% | 0.73% |
| 85284 | 0.61% | 0.66% | 0.71% | 0.78% | 0.85% |
| 85288 | 0.32% | 0.41% | 0.56% | 0.68% | 0.78% |
Source: Ownwell
Property Tax Assessment Values Across Tempe, Arizona
In Tempe, Arizona, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Maricopa County Assessor's Office for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Tempe, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. Being aware of these valuation processes in Tempe helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. The highest median tax bill in Tempe is $3,624 in the 85284 zip code, while the lowest median tax bill is $1,655 in the 85288 zip code.
Average Tempe Assessed Value
$361,800
Average Maricopa County Assessed Value
$328,300
Average Arizona Assessed Value
$302,154
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Tempe, Arizona
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 85281 | $176,800 | $232,350 | $333,500 | $400,300 | $501,500 |
| 85282 | $205,600 | $273,200 | $358,600 | $407,600 | $457,300 |
| 85283 | $209,200 | $290,500 | $357,800 | $415,200 | $481,600 |
| 85284 | $349,300 | $429,000 | $513,300 | $632,600 | $871,500 |
| 85288 | $185,300 | $250,800 | $292,600 | $358,750 | $426,300 |
Source: Ownwell
Property Tax Bills Across Tempe, Arizona
In Tempe, located in Maricopa County, AZ, property tax bills are calculated based on the assessed value of a home, which is derived from its market value. The assessed value is then multiplied by the local property tax rate to determine the tax bill. Tempe's property tax rate is notably lower than the national median of 0.99%. Several factors influence the tax bill, including the home's market value, which currently has a median of $361,800 in Tempe. Homeowners in the 25th percentile can expect a tax bill around $1,432, while those in the 75th percentile might see bills closer to $2,727. For homes in the 90th percentile, tax bills can reach up to $3,776. The highest median tax bill in Tempe is $3,624 in the 85284 zip code, whereas the lowest median tax bill is $1,655 in the 85288 zip code. These property tax bills significantly impact homeowners, influencing their overall housing costs and potentially affecting their financial planning and homeownership decisions.
Average Tempe Tax Bill
$2,007
Average Maricopa County Tax Bill
$1,766
Average Arizona Tax Bill
$1,666
Average United States Tax Bill
$2,690
Property Tax Bills Across Tempe, Arizona
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 85281 | $802 | $1,203 | $1,686 | $2,356 | $3,284 |
| 85282 | $1,003 | $1,386 | $1,857 | $2,254 | $2,727 |
| 85283 | $998 | $1,450 | $2,049 | $2,639 | $3,312 |
| 85284 | $2,317 | $2,921 | $3,624 | $4,701 | $6,774 |
| 85288 | $802 | $1,164 | $1,655 | $2,103 | $2,600 |
Source: Ownwell