Valley suburbs among U.S. cities with lowest property tax burdens

Arizona homeowners typically pay only a small fraction of their yearly income in local taxes for their properties. In fact, according to a recent study, the state’s property taxes are among the lowest in the country. 

According to a recent study by financial technology company SmartAsset, residents of 13 Arizona cities pay 2% or less of their yearly income on property taxes. Several Valley suburbs — including Tempe, Glendale, and Mesa — rank among the top 10 out of nearly 350 American cities whose residents pay the lowest property taxes.

In Tempe, residents pay only 1.3% of their yearly income in property taxes, or a median of $1,893 a year. That makes the city the fourth-cheapest in terms of property taxes. It’s only beaten out by three cities in Alabama: Montgomery, Huntsville, and Mobile.

Glendale and Mesa closely trail Tempe, as residents spend only 1.4% of their yearly income on property taxes, with median totals of $1,543 and $2,241 spent per year, respectively. Pinal County’s San Tan Valley, which has been the recent target of ICE activity, also ranks among the top 10 cheapest cities, with residents paying only 1.5% of their income in property taxes.

“Sometimes (clients) don’t believe me when I tell them how low the property taxes are,” said Valley realtor Zack Heene. “It is very attractive for buyers.”

SmartAsset’s rankings consider the largest 343 U.S. cities with populations of more than 100,000 people. It relies on data from the U.S. Census Bureau’s one-year American Community Survey from 2024. SmartAsset compared the median annual real estate taxes paid by homeowners to the median household income.

Arizona’s low property taxes are largely attributed to decades of a Republican-controlled legislature in the state, which has historically favored lower taxes with minor increases over the years. Arizona’s state law keeps taxes low with a cap. On average, Arizona homeowners pay $1,707 per year in property taxes, which is $1,088 less than the national average, according to tax website Unbiased.

Heene, a Scottsdale-based realtor for Realty One Group, called Arizona’s low property taxes “a huge selling point” for out-of-state buyers, especially Californians looking to make a move to the state. “Some people don’t like all the people moving in,” but the low taxes are “why a lot of people are,” Heene said. “That’s just another tax benefit of moving to Arizona.”

While lower property taxes are contributing to the Californication of Arizona, that isn’t the only downside. Lower taxes result in less money being allocated toward roadways, public schools and other public service mechanisms. It’s a factor in Arizona’s teachers being among the worst paid in the country and public schools being underfunded. 

Tempe, Glendale, Mesa and San Tan Valley residents might be paying the least in property taxes in the state, but they certainly aren’t the only state residents paying little. Here’s how other Arizona cities rank. The rankings also take into account other considerations, such as median property tax, median income and median housing cost. 

11. Chandler – 1.5% of income spent on property taxes
16. Gilbert – 1.6%
17. Phoenix – 1.6% 
19. Peoria – 1.6%
20. Surprise – 1.7% 
31. Goodyear – 1.8% 
32. Buckeye – 1.8% 
41. Yuma – 1.9% 
45. Tucson – 2.0%