Understanding Arizona’s Transfer Tax: A Quick Guide

Selling your home in Arizona? You might have some questions about the Texas transfer tax. Does Arizona have a transfer tax?

Transfer taxes are fees the state, county, or city imposes when property ownership is transferred from one party to another. These taxes can vary widely depending on where you’re located and the specifics of the property sale.

In this guide, we’ll dig into how transfer taxes work in Arizona, giving you insight into what you can expect when it comes to transfer taxes in the Grand Canyon State.

What are transfer taxes?

Real estate transfer taxes are assessed by state or local authorities when the ownership of a property changes hands. According to the Federal Trade Commission, this tax is triggered once the title—or the legal rights to a property—is transferred from one person to another.

The actual tax rate and the responsibility for paying this tax can vary significantly depending on the property’s location, reflecting different state, county, or city regulations.

Who pays for transfer taxes?

Unlike many other states, Arizona does not impose a state transfer tax on real estate transactions, which can alleviate some of the financial burden for property sellers.

Prior to 2009, home sellers in Arizona were responsible for a transfer tax until Proposition 100, the “Protect Our Homes Initiative”, was signed into law.

However, there have been some attempts to change this, but none have so far gained traction. HB2683, a bill proposed in February 2023, would assess a real estate transfer tax on properties transferred to institutional investors, which the bill defines as investors with assets exceeding $25 million.