What Arizona Real Estate Tax Qualifies for a Property Tax Credit?

Arizona Real Estate Tax

Guess what?  Many senior renters pay Arizona real estate tax and didn't know that they did.  They may even qualify to get a tax credit for it too.

There are several reasons that a senior might qualify for property tax relief in Arizona including the following:

  • You own a home in Arizona and meet the qualifications for tax deferral or a tax freeze. There is also a law that gives widows and disabled seniors a slight reduction in property value, which translates into some property tax relief.
  • You rent an apartment, and the owner of the property is assessed property tax on the unit in which you live. Even though you don’t own the property, you likely pay part of the property tax each time you pay your rent.
  • You own a mobile home but you pay a monthly rent tax for the lot space your mobile home sits on.
  • You pay rent to live in a condo, co-op, nursing home or an assisted living facility.

If you’re shocked that property owners aren’t the only ones responsible for property tax in Arizona, you aren’t alone. When I first moved to this state more than a decade ago, I didn’t realize that some states allow the cost of property tax to become a burden to renters. This was especially alarming when I realized that many senior citizens getting by with limited income are charged this property tax each month they pay their rent for 12 months out of the year.

I started digging around to see what types of property tax relief for seniors are available, and I realized that the state refunds the property tax to some renters in this state every year. If you qualify for this tax relief, you could receive a refund from the state at the end of the 2022 during tax filing season in early 2023.

We’re talking about extra cash in your pocket come April/May 2023, and I don’t want you to miss out on money that you deserve, have already earned, and is owed to you by the state. That’s why I created this website, and I’m about to explain how this type of property tax relief works in Arizona.

How Does Arizona Real Estate Tax Relief for Seniors Work?

Rental property tax relief doesn’t excuse you from paying taxes. If your property is assessed these taxes, a percentage of your rental payments is likely going to taxes rather than your landlord’s pocket. Your rent would be a bit lower if it weren’t for this tax, and there is no way to change that. What you can do is get a refund for that portion of your rental payments come the end of the year.

I know that many senior citizens, once retired, don’t want to mess with filing taxes, but luckily, filing for tax relief typically requires just two forms. You may need to submit some paperwork as well. This may include a copy of your lease, which will state that you are the responsible party for the property, have lived there the entire year for which you’re seeking property tax relief, and do in fact pay property tax as part of your rental payments; or, submit something as simple as an accounting sheet from your landlord which provides the same proof as your lease agreement along with any income statements issued to you at the beginning of each year. 

So, you pay your property taxes as part of your rental payments all year, and then you file for the Arizona Property Tax Refund Credit. This entitles you to a refund from the state that equals the amount of property tax that you paid to your landlord throughout the year. You can use that money however you want, so consider it a bit of extra money to pay bills, buy groceries or even treat yourself to something that normally falls outside of your budget. Let's not forget that inflation is running at an all-time 40-year high level!

What Arizona Real Estate Tax Will Qualify?

The Arizona Property Tax Refund Credit can be claimed by seniors living in various different types of rental properties and these include houses, mobile homes, apartment units in apartment complexes, condos and co-op rentals, and even nursing homes and assisted living facilities.

If you thought that you had to buy a home to qualify for Arizona real estate tax relief, this page has taught you something valuable. Any rental property that requires the tenant to pay property tax as a part of the rental payment will qualify for the Arizona Property Tax Refund Credit.

The only exception is property that is considered low-income housing or tax exempt properties. If you receive some type of subsidy to help pay your rent, you may not qualify for rental property tax relief. This includes anyone who receives tenant-based Section 8, so this program isn’t an option if you are already receiving housing assistance from the State of Arizona.

If you aren’t sure whether your rental property will qualify you to receive Arizona real estate tax relief, look at your lease closely. It may state how much property tax is included in your rental payment. If it doesn’t, you may need to ask your landlord to find out if you pay property tax and how much. If you discover that you are in fact paying property tax on your rent payments and it is not in plain view on your lease agreement, then ask the landlord or property manager to adjust your lease to show not only the amount of the tax you are paying each month but also at what percentage rate you are being taxed at. This will verify your basic eligibility for rental property tax relief.

Ready to Get Started?

If you do pay property tax as a part of your rental payments each month, I can help you secure the proper forms to file for the Arizona Property Tax Refund Credit. I have received well over $3,465 in refunds from this program, and my goal is to help other Arizona seniors get the money that they are rightfully owed. Just keep in mind that all seniors who live and pay rent in Arizona must meet the state's qualification guidelines to file to receive a refund, guidelines which I highlight throughout the pages of this website and in my eBook, now in its 4th printing.

This website contains all the information that you need to file for your tax refund from the Arizona real estate taxes you paid on your rent throughout 2022. You will file on or before the deadline in April 2023 to receive a refund of the property taxes you are paying right now in 2022. The deadline to file corresponds to the individual federal and state income tax filing deadline on April 15 every year, and I’m here to make sure that you get the money that you deserve!  Why?  Your refund will go into the state budget if you fail to file. It cannot be reclaimed beyond the April 15 deadline in 2023 (falls on a Saturday), so you have a choice.  You can let the state keep your money, or you can claim your refund and let the state put what it owes you into your bank account by properly filing each year that you qualify. Personally, I have never missed a filing deadline from the moment I first qualified to file.

Related Articles: