Phoenix apartment buildings are taxed as Arizona Legal Class 4 property: the Maricopa County Assessor sets a value, 10% of the limited property value becomes the assessed value, and local tax rates are applied to that figure. Two details shape the bill more than anything else: the 5% annual cap on limited value, and the fact that rental buildings do not get the credits that owner-occupied homes do.
Phoenix is the county seat of Maricopa County, and every apartment parcel in the city runs through the same county assessment and collection process described below.
Class 4: where apartments sit in Arizona’s system
Arizona sorts property into legal classes, each with its own assessment ratio. Under A.R.S. 42-12004, property used for residential purposes and solely leased or rented is Class 4, which is where apartment buildings fall. A.R.S. 42-15004 sets the Class 4 assessment ratio at 10% of full cash value or limited value, as applicable.
The contrast is with Class 3, which covers a home occupied by its owner as a primary residence. That classification unlocks state support that rentals never receive, discussed below.
Full cash value versus limited property value
Each year the Assessor produces two numbers for every parcel:
- Full cash value (FCV): the Assessor’s estimate of market value, which can move sharply with market conditions.
- Limited property value (LPV): the value actually used to calculate taxes. Under A.R.S. 42-13301, LPV can grow by no more than 5% over the prior year’s LPV, and it can never exceed FCV.
The Arizona Constitution has used this lesser-of approach since tax year 2015. For an apartment owner, the practical effect is that a big jump in market value shows up in the tax bill gradually. A building can carry an LPV well below its FCV, and because LPV rises at most 5% a year, that gap can take years to close even if the market cools.
Because the statute builds each year’s LPV from the prior year’s LPV rather than from a sale price, tax projections for a Phoenix building are best built from the parcel’s actual LPV and FCV history on the Assessor’s records.
The annual calendar: notices, appeals and payments
The key dates follow a predictable pattern. The Assessor mails notices of value in February for the following tax year; for example, notices for tax year 2026 were mailed on February 21, 2025, according to the Maricopa County Assessor’s appeals page.
- Appeal window: an owner who disagrees with the value has 60 days from the mailing date of the notice to file a petition with the Assessor (A.R.S. 42-16051).
- First-half payment: due October 1 and delinquent after 5:00 p.m. on November 1 (A.R.S. 42-18052).
- Second-half payment: due the following March 1 and delinquent after 5:00 p.m. on May 1.
Because the notice arrives well before the bill, the best time to question an apartment building’s value is the spring appeal window, not after the October statement arrives. Owners typically support an appeal with rent rolls, operating statements and recent sales of comparable buildings.
Why rentals miss out on homeowner relief
Arizona’s property tax system includes two forms of relief that apply only to owner-occupied Class 3 homes:
- The homeowner rebate. Under A.R.S. 15-972, the state covers 50% of the school district primary tax rate for eligible owner-occupied residences, up to $600 per year.
- The 1% cap on primary taxes. The Arizona Constitution limits taxes on residential property to 1% of limited value, and the implementing credit in A.R.S. 15-972 is defined around owner-occupied Class 3 property.
Neither applies to a Class 4 apartment building. That is why a single-family rental or a condo that shifts from owner occupancy to renting can see its bill rise even if its value did not change, and why tax lines on apartment operating statements rarely resemble a homeowner’s bill.
The rental registration requirement
Arizona law adds an administrative step that catches some owners off guard. Under A.R.S. 33-1902, owners of residential rental property must register the property with the county assessor, and the Assessor’s form lists multifamily residences among the covered property types. Owners who live outside Arizona must also designate a statutory agent in the state, according to the Assessor’s rental registration FAQ. The statute provides civil penalties for failing to register, which cities and towns can enforce.
What this means for Phoenix apartment owners
- Check the parcel’s legal class every year; a misclassification affects how the parcel is treated and whether relief applies.
- Compare LPV with FCV to understand how much built-in tax growth the property carries.
- Put the February notice and the 60-day appeal window on the calendar.
- Confirm the rental registration is current, especially after a purchase or a change in ownership entity.
For a side-by-side look at how Arizona compares with other states, see our rent control and property tax guide by state. Our Arizona market overview covers the rest of the state, and owners exploring an exit can read about selling an apartment building in Phoenix on our city page.
