Cost of Living in Phoenix: Property Tax & HOA Fees (2025 Guide)

By Thomas Greer | Published: May 30, 2025

What You’ll Pay in Property Taxes in Phoenix

In Phoenix, property tax rates typically range from 0.6% to 1.0% of the assessed home value annually. The median effective property tax rate in Phoenix is around 0.8%. For a home valued at $295,000, that equates to approximately $2,360 per year or $197 per month in property taxes.

It’s important to note that property tax rates can vary depending on the specific location within Phoenix and the assessed value of the home. Homeowners should review their property tax bill carefully and budget accordingly. In similar cities, property tax rates often fall between 0.5% and 1.2%.

Arizona’s property tax rates are generally lower than the national average. According to recent data, the median property tax rate across the United States is 1.1%, while Phoenix’s median rate is closer to 0.8%. This means that homeowners in Phoenix may pay slightly less in property taxes compared to other major cities.

How HOA Fees Work in Phoenix

A woman waters flowers beside her garage in a Phoenix suburb as a girl reads on a neighboring porch. — In Phoenix’s suburbs, residents take pride in their homes and find moments of tranquility in the rhythms of daily life.

HOA stands for Homeowners Association. When you purchase a home within an HOA community in Phoenix, you become a member of the association and are required to pay regular fees. These fees contribute to the maintenance and upkeep of common areas and amenities within the community.

In Phoenix, HOA fees often cover services such as:

Trash and recycling collection
Landscaping and maintenance of common areas
Community pool and fitness center upkeep
Security and gate maintenance
Irrigation or xeriscaping services

The specific amenities and services covered by HOA fees can vary from one community to another. It’s crucial for homeowners to review the HOA agreement carefully to understand what is included in their fees and what additional costs they may be responsible for.

Typical Monthly HOA Costs

The cost of HOA fees in Phoenix can range from $70 to $200 per month, depending on the community and the amenities provided. Some luxury or amenity-heavy developments may have even higher monthly fees.

Community Type	Typical Monthly HOA Fee
Low-fee neighborhood	$70 – $100
Average suburban HOA	$100 – $150
Luxury/amenity-heavy development	$150 – $200+
Example Monthly Cost: $295k home with 0.8% property tax + $150 HOA	≈ $345/month

🏆 Winner: For the most cost-effective setup, look for a low-fee neighborhood with basic amenities and lower property taxes. This can help keep your monthly housing costs more manageable.

Hidden or Seasonal Fees to Expect

In addition to regular monthly HOA fees, homeowners in Phoenix should be aware of potential hidden or seasonal fees, such as:

Permit fees for home improvements or renovations
Bulk trash or large item removal surcharges
Seasonal irrigation or landscaping charges
Special assessments for major repairs or upgrades to common areas

These additional fees can catch homeowners off guard if they’re not prepared. It’s essential to review the HOA agreement thoroughly and ask about any potential extra costs before purchasing a home in an HOA community.

Are These Costs Worth It?

While paying property taxes and HOA fees may seem like an added burden, homeowners in Phoenix do receive benefits in return. Property taxes help fund essential services like schools, public safety, and infrastructure maintenance. HOA fees contribute to the upkeep and enhancement of the community, which can improve quality of life and property values.

Living in an HOA community offers advantages such as well-maintained common areas, access to amenities, and the enforcement of community standards. However, it also means adhering to rules and regulations set by the HOA, which some homeowners may find restrictive.

In Phoenix, homes within HOA communities often retain higher resale values compared to non-HOA properties. The added amenities and maintained appearance of the community can be attractive to potential buyers, which may help offset the cost of HOA fees in the long run.

FAQs About Property Tax and HOA in Phoenix

How much is the average HOA fee in Phoenix?
The average HOA fee in Phoenix ranges from $100 to $150 per month, but it can vary widely depending on the community and amenities offered.

Can your HOA fees increase?
Yes, HOA fees can increase over time to keep up with rising costs of maintenance, utilities, and other expenses. Homeowners should review their HOA agreement for information on fee increases and attend annual meetings to stay informed.

Do you pay both property tax and HOA fees?
Yes, homeowners in Phoenix are responsible for paying both property taxes and HOA fees if they live in an HOA community. These are separate expenses that contribute to different aspects of homeownership.

Final Cost Insights for Phoenix Homeowners

When budgeting for homeownership in Phoenix, it’s crucial to factor in both property taxes and HOA fees. On average, homeowners can expect to pay around 0.8% of their home’s value in annual property taxes and $100 to $150 per month in HOA fees.

While these costs can add up, they also provide value in terms of community amenities, property maintenance, and potential resale value. Homeowners should carefully review their HOA agreement and budget accordingly to ensure they can comfortably afford these expenses.

For those considering purchasing a home in Phoenix, it’s wise to explore [housing costs by type](/phoenix-az/housing-breakdown/) and be aware of any [hidden fees](/phoenix-az/local-hidden-fees/) associated with the property or community. By understanding the full cost of homeownership, buyers can make informed decisions and find the best fit for their lifestyle and budget.