Arizona Property Tax Exemptions 2026: Homestead, Senior, Veteran & Disability
Arizona (AZ) homeowners have several ways to legally reduce their property tax bill — homestead reductions, senior credits, veteran exemptions, and disability programs. This page lists every Arizona property tax exemption available in 2026, who qualifies, dollar amounts, and how to apply.
Quick answer: The most common Arizona property tax exemption is the general homestead reduction for owner-occupied primary residences. Additional savings stack on top for residents who are age 65+, disabled, a disabled veteran, or a surviving spouse. Most Arizona exemptions require a one-time application with the local county assessor; some need annual income recertification.
How much can a Arizona homeowner save with the homestead exemption?
For a median Arizona home valued at $358,900 (current annual tax $1,858), the general homestead reduction alone is worth roughly:
All Arizona property tax exemptions at a glance
| Exemption | Who qualifies | Benefit | Typical savings |
|---|---|---|---|
| Homestead (general) | Owner-occupied primary residence | ~$47,712 value reduction | $247/yr est. |
| Senior / Age 65+ | Owner-occupied; age 65+; often income-capped | Additional reduction or freeze | $200 – $2,000/yr |
| Disabled veteran | Service-connected disability rating | Up to 100% exemption in many states | $1,000 – full bill |
| Disability (non-veteran) | Permanent total disability | Reduction + sometimes freeze | $200 – $1,500/yr |
| Surviving spouse | Of veteran, first responder, or senior | Continuation of decedent's exemption | Same as deceased's benefit |
| Agricultural / farm | Active agricultural use | Use-value assessment instead of market | 30% – 80% lower bill |
Estimated savings use Arizona's effective property tax rate of 0.52% on the median home value of $358,900. Your actual savings depend on your county assessor's millage and how exemptions are applied to assessed (vs. market) value.
Proposition 117 and the 5% LPV Cap
Prior to Proposition 117, Arizona property taxes could rise dramatically in hot housing markets as full cash values tracked market appreciation. Prop 117 decoupled tax growth from market growth.
How the cap works
Each year, the assessor calculates LPV as the lesser of:
- The prior year's LPV plus 5%
- The prior year's LPV plus the percentage increase in Full Cash Value
- Full Cash Value itself (in rare cases of FCV decline)
Over years of rising markets, LPV drifts below FCV. An Arizona home purchased in 2018 might now have FCV of $500,000 but LPV of only $380,000 — the $120,000 gap is tax-protected until a triggering event (new construction, reclassification, sale).
What triggers a reset
- Significant new construction (additions, new structures)
- Property reclassification (e.g., Class Three to Class Four when owner converts to rental)
- Division or merger of parcels
Notably, sale alone does not trigger a reset in Arizona — the LPV cap passes through to the buyer. This is different from California Prop 13 (where sale triggers reassessment).
Senior Property Valuation Protection Option
Arizona offers a county-administered senior freeze separate from the Prop 117 cap. The Senior Property Valuation Protection Option (sometimes called Senior Freeze) fixes a qualifying senior homeowner's LPV for a renewable three-year period.
Eligibility for 2026
- At least one owner must be age 65 or older
- Home must be the primary residence
- Owner must have lived in the home at least 2 years (typically)
- Average household income (all sources, all owners) over the prior 3 years must be:
- Single owner: $47,712 or less
- Two or more owners: $59,640 or less
What the freeze does
Locks the LPV at the value as of the application date. For three tax years, the LPV does not rise (unless new construction is added). At the end of the three years, owners must reapply.
What the freeze does NOT do
- Does not freeze the tax rate (voter-approved millage increases still affect bill)
- Does not freeze assessment ratio (reclassification still changes it)
- Does not exempt the owner from tax — LPV still has tax applied at current rates
Application
Submit Form DOR 82104 with your county assessor's office by September 1, 2026 to lock the 2027 values. Renewal is required every three years.
Frequently Asked Questions
Who qualifies for the Arizona senior freeze in 2026?
Homeowners age 65+ with at least 2 years of primary residence in the home, and average household income (all owners, 3-year average) at or below $47,712 (single owner) or $59,640 (multiple owners) for 2026. Freezes LPV for a renewable 3-year term. Apply with the county assessor by September 1, 2026 to lock 2027 values.
Does Arizona have a property tax exemption for seniors?
Arizona does not have a dollar-amount homestead exemption for seniors. Relief comes from the Senior Property Valuation Protection Option (freezes LPV for 3 years), the Widow/Widower or Disability exemption (up to $4,748 assessed value off), and the Property Tax Refund Credit (state income tax credit up to $502 for very low-income seniors).
Now check your county's actual rate
Exemptions reduce the taxable amount — but the millage your county charges is what determines the bill. See the 2026 effective rate for every Arizona county.
Browse Arizona Counties → Read the full Arizona guideArizona Department of Revenue — Property Tax · Arizona DOR — Senior Property Valuation Protection Option · Pima County Assessor — Senior Freeze Application (2026) · Mohave County Assessor — Senior Valuation Freeze · Arizona Revised Statutes Title 42 (Taxation) · Proposition 117 Official Text. Exemption amounts and filing deadlines verified against the 2025-2026 legislative sessions and official state publications. Always verify with your local assessor before filing — programs change annually. This page is informational and is not tax or legal advice.