Taxes on Selling a House in Arizona: What Home Sellers Need to Know

Arizona ranks among the 10 states with the lowest overall tax burdens. One reason for this is the Grand Canyon State’s recent change to a flat income tax rate of only 2.5%. This positive ranking also holds true regarding taxes on selling a house in Arizona. This post is designed to simplify and clarify the financial aspects of selling your home in Arizona, helping you better understand what to expect. We’ll also share a few tips from an expert Arizona real estate agent. “The two biggest taxes you need to be aware of are your property taxes, and the tax that you may owe on the profit (capital gains) depending on whether it’s an investment property or a primary residence,” says Matthew Potter, a top Arizona real estate agent who works with 78% more single-family homes than the average Phoenix agent. Let’s start by taking a look at capital gains taxes. How Much Is Your Arizona Home Worth Now? Get a near-instant real estate house price estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes. Capital gains tax If you profit from the s...