When it comes to affordability in major U.S. cities, Phoenix stands out as one of the best places to own a home—especially when you consider property taxes. Among the 12 largest cities in the country, Phoenix boasts the lowest effective property tax rate, currently sitting at approximately 0.56%. This means homeowners here enjoy significantly lower annual tax bills compared to cities like Chicago, Houston, and Philadelphia, where tax rates can be two to four times higher. Lower property taxes not only make homeownership more affordable but also allow homeowners to invest more in their properties, whether through renovations, landscaping, or other personal touches that enhance their living experience.
For those who own historic properties in Phoenix, the savings get even better. The city offers a substantial tax break for qualifying historic homes, allowing homeowners to enjoy even lower property tax rates. This incentive makes preserving and restoring Phoenix’s charming historic neighborhoods not only a passion project but also a smart financial decision. Whether you're considering buying a home or investing in real estate, Phoenix’s favorable tax structure is yet another reason why this city continues to attract homeowners looking for value, affordability, and long-term growth.
Property tax rates in the United States vary significantly across cities due to local policies, property values, and funding requirements for public services. Below is an overview of the effective property tax rates for the 12 largest U.S. cities:
.jpeg)
12. Chicago, IL - $20,800 for a $1M valuation
- Effective Property Tax Rate: Approximately 2.08%
- Details: Chicago's property tax rates are among the highest in the nation, contributing to a significant tax burden on homeowners.
11. San Antonio, TX - $20,400 for a $1M valuation
- Effective Property Tax Rate: Approximately 2.04%
- Details: Similar to other Texas cities, San Antonio has higher property tax rates due to the state's tax structure.
10. Austin, TX - $17,000 for a $1M valuation
- Effective Property Tax Rate: Approximately 1.70%
- Details: Austin's property tax rates are higher due to Texas's property tax system.
9. Houston, TX - $17,000 for a $1M valuation
- Effective Property Tax Rate: Approximately 1.70%
- Details: Texas cities, including Houston, have higher property tax rates due to the state's reliance on property taxes for local funding.
8. Dallas, TX - $17,000 for a $1M valuation
- Effective Property Tax Rate: Approximately 1.70%
- Details: Dallas, like other Texas cities, has higher property tax rates due to the state's reliance on property taxes.
7. Philadelphia, PA - $13,400 for a $1M valuation
- Effective Property Tax Rate: Approximately 1.34%
- Details: Philadelphia's property tax rates are higher than the national average, impacting homeowners' tax obligations.
6. New York City, NY - $8,800.00 for a $1M valuation
- Effective Property Tax Rate: Approximately 0.88%
- Details: New York City's property tax rates are relatively low compared to other major U.S. cities, contributing to its overall affordability.
5. Jacksonville, FL - $8,300 for a $1M valuation
- Effective Property Tax Rate: Approximately 0.83%
- Details: Jacksonville's property tax rates are relatively moderate compared to other major U.S. cities.
4. Los Angeles, CA - $7,400 for a $1M valuation
- Effective Property Tax Rate: Approximately 0.74%
- Details: Los Angeles benefits from Proposition 13, which limits property tax rates and increases, keeping them relatively low.
3. San Diego, CA - $7,400 for a $1M valuation
- Effective Property Tax Rate: Approximately 0.74%
- Details: San Diego benefits from Proposition 13, keeping property tax rates relatively low.
2. San Jose, CA - $7,400 for a $1M valuation
- Effective Property Tax Rate: Approximately 0.74%
- Details: San Jose benefits from Proposition 13, maintaining lower property tax rates.
1. Phoenix, AZ - $5,600 for a $1M valuation
- Effective Property Tax Rate: Approximately 0.56%
- Details: Phoenix benefits from relatively low property tax rates, contributing to its overall affordability.
Note: These rates are approximate and can vary based on specific local assessments and exemptions. For the most accurate and current information, it's advisable to consult local tax authorities or official city resources.
State Historic Property Tax Program
The Arizona State Historic Property Tax Program provides eligible property owners with a significant reduction to their state property tax assessment. This 15-year agreement mandates that the property must be maintained according to the standards set by the federal government and Arizona State Parks Board, and is only applicable to properties used for non-income producing activities. To be eligible for the program, the property must be listed on the National Register of Historic Places either individually or as a contributor to a historic district.
The State Historic Preservation Office (SHPO) manages the program in collaboration with county assessor offices, with SHPO determining eligibility and monitoring property maintenance and the county assessor handling tax classification changes, property value issues, and tax calculation. The property must meet the minimum maintenance standards established by the State Parks Board. The program is governed by ARS § 42-12101 and ARS § 42-12102 through §42-12108, and is operated according to rules established in the Arizona Administrative Code (12-8-306).
Tax Reclassification Form
State of Arizona Historic Property Reclassification Application for Residential, Owner-Occupied Properties: Application and Instructions
Owner Requirements
The program can reduce your property taxes between 35-45%. (The exact figure is dependent on special assessments which are specific to your area. Questions regarding the amount of the reduction should be directed to your county assessor’s office.) As a condition of the reduced tax rate, the owner enters into a 15-year agreement with the state, consenting to maintain their property and to preserve the integrity of its historic features, materials, appearance, workmanship, and environment.
If the owner plans to do any work on the property that will impact its public appearance, SHPO must be contacted for review and comment or approval before project implementation. All such projects are reviewed for appropriateness according to a set of national guidelines called the Secretary of the Interior's Standards for Rehabilitation. You are required to notify SHPO when the property ownership or property use changes.
How to Apply
Applications can be obtained from your County Assessor's Office, SHPO, or here. The application can also be printed from the link below. The application requires two photographs (showing a front view and an angled view of the front and one side of the property; see this example and should be mailed or delivered to the county assessor’s office by June 30 in order to be enrolled for the following tax year. (For example, an application approved by August 1, 2023 will qualify a property for the reduction in the 2024 tax year.) DO NOT submit Polaroid photos. Standard 4x6 snapshots or digital photos printed out are acceptable. Applicants are notified within 30 days whether or not the property has been certified into the program. At the same time, the county assessor’s office is notified of the application's disposition.
If you have questions about the program, review the documents below or contact SHPO at 602-542-4009.
More information:
- Program Summary
- National Register of Historic Places Summary
- National Park Service Preservation Briefs
- County Assessor's Office
Forms
- Tax Application and Instructions
- Tax Application and Instructions - Fillable Form
- Change of Ownership Affidavit
- Periodic Report











We envision our future offices – amongst marketing staff, photographers, desks and equipment – with plenty of dog beds filled with lazy pups and mangled toys. Zach will work right along side Raffi, his rescued Pittie mix that he brought home from a local rescue and Don will have Penelope (rescued Pittie Mix adopted from MAIN) and Shiloh (Bearded Collie from Urban Rescues) playing quietly next to his desk while he works away. Sigh.. Someday. 
