{"id":44955,"date":"2026-01-30T04:00:31","date_gmt":"2026-01-30T12:00:31","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=44955"},"modified":"2026-01-30T15:38:22","modified_gmt":"2026-01-30T23:38:22","slug":"taxes-on-selling-a-house-in-arizona","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/taxes-on-selling-a-house-in-arizona\/","title":{"rendered":"Taxes on Selling a House in Arizona: What to Expect"},"content":{"rendered":"

Arizona ranks among the 10 states with the lowest overall tax burdens<\/a>. One reason for this is the Grand Canyon State\u2019s recent change to a flat income tax rate of only 2.5%<\/a>. This positive ranking also holds true regarding taxes on selling a house in Arizona.<\/p>\n

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\u2019ll also share a few tips from an expert Arizona real estate agent.<\/p>\n

\u201cThe 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,\u201d says Matthew Potter<\/a>, a top Arizona real estate agent who works with 78% more single-family homes than the average Phoenix agent.<\/p>\n

Let\u2019s start by taking a look at capital gains taxes.<\/p>\n\n\n\n\n\n

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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.<\/p>\n \n

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Capital gains tax<\/h2>\n

If you profit from the sale of a home in Arizona, then you may owe some capital gains tax<\/a> unless you qualify for an exclusion, which we\u2019ll address in the table below.<\/p>\n

Capital gains<\/a> are the profits made when you sell an appreciable asset, such as your home. For example, if you buy a home for $400,000 and sell it for $600,000, you have a capital gain of $200,000.<\/p>\n

Capital gains are taxed by both the state and federal governments, but Arizona does not distinguish between short-term and long-term capital gains. It taxes all capital gains as ordinary income.<\/p>\n

However, on the federal level, gains can be considered either short-term or long-term.<\/p>\n