Florida offers a homestead exemption that removes $50,000 from your assessed value — saving roughly $750–$1,000/year on a typical home. Texas offers a $100,000 homestead exemption for those 65+. Arizona has nothing equivalent. There is no blanket exemption that reduces your assessed value simply for owning and living in your home.
This surprises buyers from Florida and Texas who assume every state has a similar program. Arizona’s approach to property tax relief is narrower and more targeted.
| Requirement | Detail |
|---|---|
| Age | 65 or older |
| Residency | Primary residence for 2+ consecutive years |
| Income | Total household income ≤ $47,712 (3-year average, all owners) |
| Properties | One property only |
| Application | Form DOR 82104, filed with county assessor by September 1 |
| Renewal | Every 3 years with income verification |
What it does: freezes your Limited Property Value (LPV) at the current level. Your assessed value will not increase even if home values rise. What it does NOT do: freeze the tax rate. If the county or school district raises rates, your tax bill can still increase. The freeze prevents assessment-driven increases but not rate-driven increases.
Estimated savings: depends on your market’s appreciation rate. In a market appreciating 3%/year, the freeze saves roughly $100–$200/year in years 1–3, growing to $300–$600/year by years 5–10 as the gap between frozen and market value widens. Over 10 years: $1,500–$4,000 in cumulative savings.
$47,712 total household income means ALL income for ALL owners — Social Security, pensions, IRA distributions, investment income, part-time wages. For a couple each receiving $24,000 in Social Security alone, they’re at $48,000 and already over the limit before any other income. Most retirees with pensions or significant retirement savings exceed this threshold. The freeze helps low-income seniors; it doesn’t help middle-income retirees.
Veterans with a 100% permanent disability rating receive a property tax exemption of up to $4,375.64 off their assessed value (the limited property value). This saves roughly $300–$500/year depending on tax rates. Apply through the county assessor with VA disability documentation.
Surviving spouses receive an exemption of up to $3,500 off assessed value. Saves roughly $250–$400/year. Apply through the county assessor with spouse’s death certificate.
Arizona’s most significant property tax feature isn’t an exemption — it’s the 10% assessment ratio. The county taxes you on 10% of your Limited Property Value, not the full market value. A $400,000 home has an assessed value of $40,000, and the combined tax rate applies to that $40,000. This built-in 90% reduction is why Arizona’s effective property tax rate (0.55–0.85% depending on county) is lower than most states despite having no traditional homestead exemption.
Additionally, Proposition 117 caps the annual increase in Limited Property Value at 5%, regardless of actual market appreciation. If your home jumps 15% in value, your LPV only rises 5%. This provides automatic assessment growth protection without any application required.
| State | Homestead Exemption | Effective Tax Rate | Tax on $400K |
|---|---|---|---|
| Florida | $50K off assessed value | ~0.80% after exemption | ~$2,800 |
| Texas (65+) | $100K off assessed + freeze | ~1.0% after exemption | ~$3,000 |
| Arizona (Pima) | None (freeze if income < $47K) | ~0.85% | ~$3,400 |
| South Carolina (65+) | $50K off + freeze | ~0.50% after exemption | ~$1,750 |
Arizona’s property tax is competitive but not the lowest among retirement states. The state’s tax advantage comes from the combination of low property tax, low income tax (2.5% flat), and no Social Security tax — not from a single generous exemption.
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