Cottonwood, Arizona Property Taxes
The median property tax rate in Cottonwood, AZ is 0.46%, significantly lower than both the national median of 0.99% and the Arizona state median of 0.56%. With the median home value in Cottonwood at $294,367, the typical annual property tax bill reaches $1,226, which is well below the national median of $2,690. Property taxes in Cottonwood are calculated based on the tax assessed value, which typically falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Cottonwood'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 Cottonwood 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
Cottonwood, 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 Cottonwood Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Cottonwood with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Cottonwood 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 Cottonwood, Arizona
Property taxes in Cottonwood, Arizona, are essential for funding crucial local services such as public schools, road maintenance, and emergency services. The median tax rate in Cottonwood is 0.46%, which is lower than the U.S. national median of 0.99%. Local government entities within Cottonwood set these rates annually, and they can vary significantly across different neighborhoods. Each year, Cottonwood 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 Cottonwood's effective property tax rate to other counties in Arizona and the national median. For comparison, the 86326 zip code has the highest median property tax rate of 0.46%, while the same zip code also has the lowest median tax rate of 0.46%. Understanding how these cities compare with Cottonwood provides valuable insights into the varying tax landscape across Yavapai County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Cottonwood Tax Rate
0.46%
Average Yavapai County Tax Rate
0.44%
Average Arizona Tax Rate
0.56%
Average United States Tax Rate
0.99%
Property Tax Rates Across Cottonwood, Arizona
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 86326 | 0.28% | 0.34% | 0.46% | 0.50% | 0.58% |
Source: Ownwell
Property Tax Assessment Values Across Cottonwood, Arizona
In Cottonwood, 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 Yavapai County Appraisal District 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 Cottonwood, 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 Cottonwood helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. Notably, the highest and lowest median tax bills in the area are both $1,226, found in the 86326 zip code.
Average Cottonwood Assessed Value
$294,367
Average Yavapai County Assessed Value
$367,324
Average Arizona Assessed Value
$302,154
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Cottonwood, Arizona
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 86326 | $81,417 | $204,195 | $294,367 | $375,353 | $481,404 |
Source: Ownwell
Property Tax Bills Across Cottonwood, Arizona
In Cottonwood, Yavapai County, AZ, property tax bills are calculated based on the assessed value of a home and the local tax rate. The assessed value is typically a percentage of the home's market value, which is determined by the county assessor. Factors such as the condition of the property, recent sales of similar homes, and improvements made to the property can influence this assessed value. For homeowners in Cottonwood, the median home price stands at $294,367. Property tax bills can vary significantly, with the 25th percentile paying around $701 and the 75th percentile facing bills up to $1,644. At the 90th percentile, tax bills can reach as high as $2,139. When compared to the national median property tax rate of 0.99%, Cottonwood's property tax bills are relatively moderate, offering some relief to homeowners. Understanding these factors helps homeowners anticipate their annual property tax expenses and plan their finances accordingly.
Average Cottonwood Tax Bill
$1,226
Average Yavapai County Tax Bill
$1,504
Average Arizona Tax Bill
$1,666
Average United States Tax Bill
$2,690
Property Tax Bills Across Cottonwood, Arizona
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 86326 | $405 | $701 | $1,226 | $1,644 | $2,139 |
Source: Ownwell