In most states, transfer taxes are typically the responsibility of the seller. Arizona, however, is one of the few states that does not have transfer taxes,[1] which means there's no need to worry about planning for this additional expense.
However, Arizona sellers are responsible for other closing costs that average 3.02% of the home price. For the median Arizona home priced at $422,479, that works out to about $12,771.
In addition to these closing costs, you'll have to pay listing agent commission, which averages 2.66% of the home's sale price, or $11,238 on the average home.
Clever Real Estate can help you save on listing commission by partnering you with a listing agent who charges just 1.5% commission. That equals $4,901 in average savings.
Who pays transfer taxes in Arizona: The buyer or the seller?
Until 2008, transfer taxes in Arizona were often paid by the home seller. However, in November 2008, Arizona voters supported a motion to prohibit real estate transfer taxes in their state. In 2009, Arizona Proposition 100 (also known as "Protect Our Homes Act") was signed into law.[2]
Market conditions and negotiations could affect who ends up paying the transfer tax, however.
Does Arizona have a mortgage tax?
While some states have an additional tax on mortgages, Arizona does not. So if you're taking out a mortgage to purchase a property, you won't owe any additional tax on the mortgage amount, at least.Does Arizona have any transfer tax exemptions?
No exemptions for transfer taxes are necessary in Arizona.
However, you may be eligible for certain property tax exemptions in Arizona. Read our guide to Arizona real estate taxes to learn more.
🏠 Planning on selling a home you inherited in Arizona? Read our guide to selling inherited property in Arizona to learn what you can expect from the process.
Can you deduct transfer taxes?
Unlike property taxes, you cannot deduct real estate transfer taxes from your annual income taxes. However, the seller may be able to include this amount in the "cost basis" of the property, which can help defer capital gains taxes.
When you sell your home for more than what you paid for it, you could be subjected to paying capital gains tax. Capital gain is calculated by subtracting the sale price from the price it cost you to acquire the property. For example, if you purchased a home for $150,000 and sold it for $200,000, your capital gain would be $50,000. However, if you paid the $200 transfer tax instead of the buyer, your capital gain becomes $49,800 instead.
Most home sales in Arizona will have no capital gains to claim. Individuals can exempt the first $250,000 in profit, while married couples filing jointly can deduct the first $500,000 of their profit. With a median home value far below these levels, in most cases, you won't need to worry about deductions in the first place. In the rare instance that it does, the transfer tax deduction can come in handy.
When do you pay transfer taxes in Arizona?
Transfer taxes are normally due at closing, but you won't need to worry about that in Arizona. You should be prepared for other closing costs like title service fees and agent commission, however.
💸 How much will your Arizona closing costs be? Our Arizona seller closing costs calculator can provide a detailed estimate.
Other considerations
The good news for buyers and sellers is that neither party has to figure out real estate transfer taxes on their own. The closing attorney will calculate this amount for you and include it as part of the closing costs on the settlement sheet. The transfer tax must be paid at the time of the closing in order for the new homeowner to take possession.
That said, responsibilities for ambiguous tax payments can be complicated. Buyers and sellers alike can benefit from partnering with an experienced local real estate agent who can help them navigate the complexities of the real estate transfer tax and other closing costs in Arizona.
Clever can partner you with a local real estate agent who knows how to deal with the state’s tax and helps negotiate a deal in your favor. What’s more, our agents charge only a 1.5% listing fee compared to the state average of 2.66%! The money you'll save can more than offset the cost of the transfer taxes.
By selling with a great full-service realtor, you can get top dollar for your home to offset any transfer taxes. Clever helps you find the best realtors in your local market AND negotiates lower commission rates with them.
With Clever:
- You'll only pay a 1.5% commission to list your home
- Sellers save an average $7,000 on realtor fees
- Offers come in 2.8x faster than the national average
Our matching service is 100% free with no obligation. Try Clever today!
Methodology
- Transfer tax amounts are based on government website information as of October 2025.
- We gathered our listing commission rate data from a September 2025 survey of 828 of agents nationwide.
- Home values, list prices, and sale prices are based on Zillow data as of September 2025.
