Heard Phoenix closings don’t have a transfer tax and wondered what that really means for your bottom line? You’re not alone. Arizona’s rules are different from many other states, and that can be good news for your net. In this guide, you’ll learn exactly what “no transfer tax” covers, which fees you should still expect in Phoenix, and how to budget whether you’re buying or selling. Let’s dive in.
No transfer tax in Phoenix explained
Arizona does not charge a percentage-based real estate transfer or conveyance tax on home sales. Instead, the state collects a small, flat real estate transfer fee at recording, outlined in Arizona law. You can see that fee in Arizona Revised Statutes §11-1132, along with the recording process that applies in Maricopa County. Review ARS §11-1132.
Arizona voters also approved Proposition 100 in 2008, which amended the state constitution to prohibit any new tax or fee on the sale or transfer of real property after December 31, 2007. This is the constitutional backdrop for Arizona’s “no transfer tax” stance. Read the Proposition 100 summary.
What you still pay at closing
“No transfer tax” does not mean “no closing costs.” In Phoenix, expect the usual line items you see in most states:
- Title insurance and title services. In Arizona, it is customary for the seller to pay for the owner’s title insurance policy, while the buyer typically pays the lender’s policy. Owner’s policy premiums often land in the low thousands on a typical home. See Arizona closing cost norms.
- Escrow or settlement fees. Title companies handle escrow and settlement in Arizona. Fees vary by company and price point, commonly in the several-hundred to roughly one-thousand-dollar range for each side.
- Recording charges. Maricopa County assesses document recording fees under its published schedule, and the state collects its small statutory transfer fee at recording. Check the Maricopa County Recorder fee schedule.
- Prorated property taxes. Taxes are prorated between buyer and seller based on the closing date. Effective property tax rates in Maricopa County are often around 0.4% to 0.6% of value, but exact amounts depend on the specific property and taxing districts. Estimate Arizona property taxes.
- HOA resale or estoppel fees (if applicable). Planned communities and condos often charge for resale disclosures and lien estoppel letters. Arizona law permits these fees and sets limits. Typical ranges are about $150 to $400, with rules for rush fees. See Arizona HOA fee guidance (ARS §33-1806).
- Real estate broker commissions. Commissions remain the largest seller expense in many transactions. They are negotiable and vary by agreement and market conditions. See common seller cost breakdowns.
- Lender, appraisal, and prepaid items (for buyers using a mortgage). Your lender will itemize origination, appraisal, and prepaids for interest, taxes, and insurance.
Who pays what in Phoenix
Sellers typically cover
- Owner’s title insurance policy for the buyer (customary in Arizona)
- Real estate commission per the listing agreement
- Half of escrow/settlement fees, depending on negotiation
- HOA resale/estoppel and transfer fees where applicable
- Recording charges for seller-side documents and the small state transfer fee
- Prorated property taxes through the day of closing
Buyers typically cover
- Lender’s title policy and lender-related fees (if financing)
- Half of escrow/settlement fees, depending on negotiation
- Recording charges for buyer-side documents
- Appraisal, inspections, and prepaids for insurance and taxes
- Prorated property taxes from closing date forward
Everything above is negotiable. Credits and concessions can shift who pays which item based on market conditions and your contract.
Recording fees in Maricopa County
Maricopa County charges per-document recording fees under its published schedule. The state also collects a small, flat real estate transfer fee at the time of recording. These line items are modest compared with percentage-based transfer taxes in other states. For exact current amounts and per-page rules, review the county’s fee page. View Maricopa County recording fees.
HOA resale and transfer fees
If your Phoenix property is in a homeowners association, expect charges for required resale disclosures and lien estoppel statements. Arizona’s Planned Communities Act authorizes these fees and sets caps and timing rules in ARS §33-1806. In practice, many communities’ fees fall around $150 to $400, with optional rush charges. These are administrative HOA costs, not a government tax. Learn more about ARS §33-1806.
Property tax prorations
At closing, taxes are prorated so each party pays their share for the time they own the home. While Arizona’s effective property tax rates are relatively moderate, actual prorations depend on the property’s assessed value, district rates, and your closing date. For a quick estimate, use a reputable calculator and confirm figures with the actual tax bill. Try the Arizona property tax calculator.
What “no transfer tax” does not mean
- You will still see a list of standard closing costs on your statement.
- The state’s recording-related transfer fee is a small, flat amount, not a percentage of the price. See ARS §11-1132.
- HOA resale/estoppel fees are allowed by statute and are not a government transfer tax. See ARS §33-1806 guidance.
Could this change in the future?
Arizona’s constitution prohibits new real estate sale or transfer taxes without voter action. From time to time, lawmakers introduce bills that would allow targeted or county-level transfer taxes, such as recent proposals like HB2683. These are proposals, not current law. If you hear about new ideas at the Capitol, check the latest status before assuming a change. See an example bill, HB2683. For the constitutional context, review Proposition 100.
Example seller closing budget
Here is a simple way to think about seller costs on a typical Phoenix resale. Your numbers will vary by price, contract terms, and service providers.
- Real estate commission: negotiable and usually the largest cost
- Owner’s title insurance policy: commonly in the low thousands on a typical home per Arizona norms
- Escrow/settlement services: often several hundred to about one thousand dollars
- HOA resale/estoppel fees (if applicable): often around $150 to $400 under ARS §33-1806
- Recording charges and small state transfer fee: modest fixed items per county/state schedules
- Prorated property taxes: based on closing date and tax bill estimate using this calculator
Estimates and statutory details are current as of October 16, 2025. Confirm exact county recording fees, title rates, and HOA charges for your property and contract.
Ready to run your numbers or plan a net sheet for your Phoenix sale or purchase? Get personalized, data-informed guidance from Lauren Inglese. You’ll get clear answers, market-savvy strategy, and a smooth path to closing.
FAQs
Does Phoenix charge a percentage transfer tax on home sales?
What fees should I expect at a Phoenix closing if there’s no transfer tax?
- Expect title insurance, escrow/settlement charges, recording fees, prorated property taxes, HOA resale/estoppel fees where applicable, commissions (seller), and lender-related costs for financed buyers. See typical Arizona ranges in this closing cost overview.
Are HOA resale or estoppel fees the same as a transfer tax in Arizona?
- No. HOA fees are administrative charges authorized and capped by statute, not a government tax. See Arizona’s rules under ARS §33-1806.
Who usually pays for title insurance in Phoenix?
- It is customary for the seller to pay for the owner’s title policy and for the buyer to pay for the lender’s policy, though terms are negotiable. See common Arizona practices in this state-specific guide.
Could Arizona add a new transfer tax later on?
- Any broad new transfer tax would conflict with 2008’s Proposition 100 unless voters amend the constitution. Some bills, like HB2683, have been proposed, but they are not current law. For context, review Proposition 100.
