Higher Tax Bills For Phoenix Homeowners Despite Lower Rate; City Sets Hearing

PHOENIX, AZ— Even as the city proposes lowering its property tax rate, most Phoenix homeowners will still see a slightly higher tax bill next year — and the city is required by law to tell you about it.

Phoenix is holding a public hearing at 2:30 p.m. on June 17, at Phoenix City Council Chambers, 200 W. Jefferson St., where residents can weigh in before the City Council acts on the proposed budget.

Here's what's happening. The proposed primary property tax rate for 2026-27 is $1.2652 per $100 of assessed valuation, a hair lower than the current rate of $1.2658. But because property values across Phoenix have risen, the city will collect more overall.

For the average property owner, that works out to a 2.79% increase in primary property taxes, or $6,268,660 more citywide.

In plain terms: on a $100,000 home, the city's primary property taxes would come to $126.52 under the proposal. Without the increase, that same home would owe $123.09 — a difference of $3.43.

Primary property taxes fund General Fund services including police and fire, parks and recreation, libraries, and senior and community centers.

The secondary property tax rate is also proposed to drop, from $0.8141 to $0.7745 per $100 of assessed valuation. Secondary taxes are restricted to paying off bonded debt for facilities like libraries, police and fire stations, storm drains and parks.

Arizona law requires cities to hold a public Truth in Taxation hearing any time the average primary property tax bill increases, even when the rate itself goes down.

Residents with questions can call 602-262-4800 or visit Phoenix.gov/budget.