Arizona property taxes are paid:
Question & Answer
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Annually in January
Arizona property taxes are not paid annually in January — this reflects a misunderstanding of the state's installment-based system. A single annual January payment is not consistent with Arizona Revised Statutes governing property tax due dates.
In two installments (October and March)
Monthly
Monthly property tax payments are not part of Arizona's statutory property tax system; while lenders may collect monthly escrow amounts to accumulate funds, the actual tax payments to the county are made in two installments, not monthly. Confusing mortgage escrow collection schedules with actual tax due dates is a common error.
Quarterly
Quarterly property tax payments are not prescribed by Arizona law — A.R.S. § 42-18052 clearly establishes two installments, not four. No Arizona county administers property taxes on a quarterly basis.
Why is this correct?
Answer B is correct because Arizona law under A.R.S. § 42-18052 establishes that property taxes are payable in two installments: the first half is due October 1 and becomes delinquent November 1, and the second half is due March 1 and becomes delinquent May 1. This bi-annual payment schedule is a defining feature of Arizona's property tax administration. Real estate agents must understand these dates to properly advise clients on prorations at closing and to identify potential tax lien issues.
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