Buying a home in Tempe, Chandler, or Ahwatukee means sunny weather, great schools, and reasonable living costs. But before you sign on the dotted line, you need to understand property taxes. These annual bills can make or break your budget, and the East Valley has its own quirks when it comes to calculating what you’ll actually pay. Let’s break down how Arizona property taxes work so you can plan smart from day one.
How Your Tax Bill Gets Calculated
Arizona doesn’t use your home’s market value to calculate property taxes. Instead, the system uses something called Limited Property Value or LPV. Your county assessor determines this number, which can increase by no more than 5% per year, even if your home’s market value skyrockets. This built-in cap protects you from massive tax hikes when the market goes crazy.
Here’s the math: Take your LPV and multiply it by 10% (the assessment ratio for residential properties). That gives you your assessed value. Then multiply your assessed value by the total tax rate in your area. Done.
What You’ll Actually Pay in East Valley
The good news? East Valley property taxes are lower than most of the country. Here’s what homeowners can expect based on current rates:
Chandler
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Combined tax rate: $1.0818 per $100 of assessed value for 2025-2026
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Primary rate: $0.2118 per $100 (funds police, fire, parks, general operations)
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Secondary rate: $0.87 per $100 (funds debt service on capital improvement bonds)
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A $400,000 home pays roughly $433 annually to the city alone
Tempe and Ahwatukee
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Part of Maricopa County’s assessment system
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Average effective rates range from 0.40% to 0.60% of home value
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Well below the 0.89% national average
School districts eat up about 70% of your total property tax bill, while city taxes make up only around 11%. The rest goes to fire districts, community colleges, and special districts. When you’re house hunting, remember you’re paying multiple taxing jurisdictions, not just one.
Monthly Budget Reality Check
Most buyers focus on mortgage payments and forget about property taxes. Big mistake. Here’s how to factor taxes into your real monthly costs:
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Add your annual property tax to your yearly homeowner’s insurance
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Divide that total by 12
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Add it to your mortgage payment
For a $400,000 home in Chandler with property taxes around $2,000 to $2,500 annually, you’re looking at roughly $170 to $210 per month on top of your mortgage. That might not sound like much, but it adds up fast when you’re already stretching for a down payment.
As someone who’s helped countless buyers understand the true cost of homeownership in East Valley, I’ve seen too many people get caught off guard by property taxes and other ownership expenses.
If you want personalized guidance on what your property taxes and total monthly costs will look like before you buy, I can help you navigate these numbers every day so there are zero surprises at closing.
Planning for the Long Game
Property taxes aren’t static. Your bill will change based on:
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Assessment increases: Your LPV can rise up to 5% annually
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Voter-approved bonds: School and city improvements can bump up rates
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Home improvements: Adding square footage or a pool increases your assessed value
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Exemptions expiring: Senior or disability exemptions need renewal
The 5% annual cap on LPV increases protects long-term owners from dramatic tax spikes. If you stay in your Chandler or Tempe home for 10 years while property values double, your taxes won’t double with them. Maricopa County recently proposed increases for fiscal year 2026, but these remain modest compared to other metro areas.
Understanding property taxes before buying isn’t optional in East Valley. Between Chandler’s combined rates, Maricopa County’s assessment system, and the various taxing districts that affect your bill, you need to know exactly what you’ll owe each year.
Run the numbers early, factor taxes into your monthly budget, and plan for annual increases. Your future self will thank you when October and March roll around and those tax bills arrive. Getting clear on ownership costs now means you can buy with confidence and avoid budget stress later.
Sources: maricopa.gov, mcassessor.maricopa.gov, azfreenews.com, willcarteraz.com
Header Image Source: Mikhail Nilov
