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, which means there's no need to worry about planning for this additional expense.
What are transfer taxes?
Transfer taxes are charged whenever a property changes ownership. These taxes can be charged at the state, county, and city level and the responsible party (buyer or seller) varies depending on your location and specific contract.
It's recommended that buyers or sellers partner with an experienced local agent to help better understand how real estate transfer taxes work in your specific area. If purchasing in Arizona, here's a quick guide to what to expect from transfer taxes.
Buying or selling in Arizona?
Find out more about transfer taxes in the state with a Partner Agent.
How Do Transfer Taxes Work in Arizona?
Up until 2008, transfer taxes were charged in Arizona and were often paid by the home seller. However, in November of 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.
You can learn more about all other Arizona real estate taxes here.
Other closing costs in Arizona
Even though there is no transfer tax in the state, Arizona sellers are responsible for other closing costs that average 3.00% of the home price. For the median Arizona home priced at $430,827, that works out to about $12,938.
On top of these closing costs, you'll have to pay listing agent commission, which averages 2.69% of the home's sale price, or $11,589 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 $7,281 in average savings.
Want to find a top local agent without overpaying on realtor fees? Clever negotiates 1.5% listing fees with top-rated realtors from trusted brokerages like Keller Williams, RE/MAX, and Berkshire Hathaway.
Get guaranteed full service for a fraction of the 3% rate agents typically charge. Schedule a free, no obligation consultation with a top local agent today!
Methodology
- Transfer tax amounts are based on government website information as of February 2024.
- We gathered our listing commission rate data from a December 2023 survey of 630 of our partner agents.
- Home values, list prices, and sale prices are based on Zillow data as of February 2024.
