With a 2.5% top income tax rate and 0.62% property tax, Arizona homeowners face a moderate combined tax burden. This calculator is pre-filled with Arizona numbers: $395,000 median price, 0.62% property tax, $1,650/year insurance.
Last updated: March 13, 2026
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Monthly Payment (Arizona)$0
Loan Details — Arizona
Arizona median: $395,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Arizona average: 0.62%
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Arizona average: $1,650/yr
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Property Tax
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Arizona Metro Area Home Prices
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Yearly Amortization Schedule+
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Arizona's Tax Landscape and Your Mortgage
Arizona levies a flat 2.5% income tax on all taxable income. A household earning $150,000 pays approximately $2,813 in state income tax, which reduces the amount available for monthly mortgage payments by roughly $234/month.
At the state's median home price of $395,000, the $0.62% property tax rate adds $204/month to your mortgage payment. That's $2,449/year — below the national median of ~1.1%.
Property Taxes Across Arizona
The 0.62% statewide average masks significant variation. Low property taxes offset by HOA fees in many Phoenix-area communities
Price ranges across the state: Phoenix has a median of $435,000, while Tucson sits at $310,000 — a $125,000 gap that dramatically changes your monthly payment. At $0.62% property tax, that price difference alone means $65/month more in property tax in Phoenix.
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Homebuyer Programs and Exemptions
Arizona offers several programs for homebuyers:
Home Plus program with up to 5% down payment assistance
Home in Five Advantage with 0% interest second lien
Homestead exemption: No traditional homestead exemption; limited property tax exemptions for seniors/disabled
Arizona-Specific Considerations
Flat 2.5% income tax rate (reduced from progressive in 2023)
Low property taxes offset by HOA fees in many Phoenix-area communities
Rapid home price appreciation in Phoenix metro since 2020
No state transfer tax on home sales
Property tax rates vary by county — Maricopa County (Phoenix) averages ~0.6%, while Pinal and Cochise counties can exceed 1%
Compare Arizona Mortgage Rates
See personalized rates from Arizona lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
Alaska Mortgage Calculator
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1.04% property tax, no income tax. Median home: $340,000.
Arkansas Mortgage Calculator
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0.62% property tax, 4.4% top rate. Median home: $195,000.
Frequently Asked Questions
What is the average property tax rate in Arizona?
The average effective property tax rate in Arizona is 0.62%. On a $395,000 home (the state median), that works out to approximately $2,449/year or $204/month added to your mortgage payment. Property tax rates vary by county and school district within Arizona — always check your specific jurisdiction's rate. Homestead exemption: No traditional homestead exemption; limited property tax exemptions for seniors/disabled
How much does homeowners insurance cost in Arizona?
The average annual homeowners insurance premium in Arizona is approximately $1,650 ($138/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Arizona?
Home Plus program with up to 5% down payment assistance. Home in Five Advantage with 0% interest second lien. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Arizona housing finance agency website for current eligibility requirements and application deadlines.
How does Arizona's 2.5% income tax affect home affordability?
Arizona's top income tax rate of 2.5% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $2,438-$3,188/year (effective rate is lower than the top marginal rate). The tradeoff: Arizona's relatively low 0.62% property tax rate keeps the housing-specific portion of your tax burden lower. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Arizona?
The 2026 conforming loan limit in Arizona is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Arizona state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.