Property Taxes in Sedona Arizona: Everything You Need to Know in 2025
Property taxes in Sedona, Arizona, are one of the most important considerations for both homeowners and real estate investors. Known for its breathtaking red rock views and thriving tourism industry, Sedona has become one of the most desirable places to live in Arizona. But along with rising home values comes the responsibility of paying property taxes.
In this guide, we’ll break down how property taxes are calculated, the current tax rates, exemptions available, payment schedules, and tips to manage your property tax bill effectively. Whether you’re a retiree settling in Sedona, a first-time homebuyer, or an investor, understanding local taxes is key to making informed financial decisions.
Introduction to Property Taxes in Sedona
Property taxes fund essential services such as schools, public safety, roads, and community projects. In Sedona, these taxes are collected at the county level—primarily by Yavapai County and Coconino County, depending on where your property is located.
Why Property Taxes Matter for Homeowners and Investors
For homeowners, property taxes affect the overall cost of ownership. For investors, they influence rental profitability and long-term appreciation potential. With Sedona’s popularity as both a retirement destination and a short-term rental hotspot, property taxes play a big role in financial planning.
How Property Taxes Are Calculated in Sedona, Arizona
Property taxes in Sedona are determined based on assessed property values and the local tax rate (also known as the mill rate).
Understanding Assessed Value vs. Market Value
- Market Value: The price your property would sell for on the open market.
- Assessed Value: A percentage of the market value, used to calculate property taxes.
Arizona typically uses limited property value (LPV) rather than full market value, which helps prevent sudden spikes in tax bills during real estate booms.
The Role of Yavapai and Coconino County Assessors
Both Yavapai County and Coconino County assess properties annually. Since Sedona spans both counties, your tax rate depends on which county your property falls in.
Average Property Tax Rates in Sedona
On average, Sedona property tax rates are between 0.43% (Yavapai County) and 0.49%(Coconino County) of a property’s assessed value—lower than the national average of around 1.1%.
Current Property Tax Rates in Sedona, AZ
Residential Property Tax Rates
The typical Sedona homeowner pays approximately $2,500–$3,800 annually in property taxes, depending on the location (county) and home value.
Commercial Property Tax Rates
Commercial properties often face higher assessment ratios, making property taxes a significant expense for businesses and rental property owners.
Comparison with Other Arizona Cities
Sedona’s property tax rates are generally lower than Phoenix and Scottsdale, but slightly higher than Prescott.
Factors That Affect Property Taxes in Sedona
Several elements determine how much you’ll pay:
Location Within City Limits vs. Unincorporated Areas
Homes inside Sedona city limits may pay higher taxes due to municipal services, while properties outside may pay less.
Impact of School Districts and Local Levies
Sedona’s property taxes also depend on school district boundaries, as well as special levies for local infrastructure.
Special Assessments and Local Bonds
Occasionally, bonds for schools, libraries, or road projects can temporarily raise tax bills.
Property Tax Exemptions and Relief Programs
Arizona offers several property tax relief programs that Sedona residents can take advantage of. These exemptions help lower the overall tax burden, especially for vulnerable groups.
Senior Citizens and Disabled Residents
- The Senior Property Valuation Protection Program allows qualifying seniors (65+) to freeze the Limited Property Value (LPV) of their primary residence for up to 3 years.
- Disabled residents may qualify for partial property tax relief, reducing the assessed value applied to their home.
Veterans’ Exemptions
Veterans with disabilities may be eligible for significant property tax reductions, depending on their disability rating and income level. Surviving spouses of disabled veterans may also qualify.
Agricultural and Conservation Land Benefits
Land used for farming, ranching, or conservation can receive reduced assessment rates. This helps Sedona property owners who maintain land for non-commercial or preservation purposes (with limited application in Sedona City).
Paying Property Taxes in Sedona
Knowing when and how to pay is essential for avoiding penalties.
Payment Deadlines and Schedules
In Arizona, property taxes are billed annually but paid in two installments:
- First Half: Due October 1 (delinquent after November 1)
- Second Half: Due March 1 (delinquent after May 1)
Online and In-Person Payment Options
- Online: Both Yavapai and Coconino County Treasurers offer secure online portals.
- In-Person: Payments can also be made at county offices or via mail.
Penalties for Late Payments
Late payments incur 10% interest penalties, and unpaid taxes may result in a tax lien sale, where investors can purchase liens on delinquent properties.
Appealing Your Property Tax Assessment
If you believe your Sedona property was over-assessed, you have the right to file an appeal.
When and How to File an Appeal
- Appeals must be filed within 60 days of receiving your annual valuation notice.
- Appeals can be submitted online or directly through the county assessor’s office.
Common Reasons for Successful Appeals
- Incorrect square footage recorded.
- Failure to account for property damage or repairs needed.
- Market value comparisons with similar homes showing a lower trend.
Hiring a local property tax consultant or attorney can increase your chances of success.
Trends in Sedona’s Real Estate Market and Taxes
Sedona’s property market has seen rapid appreciation in recent years, and this directly impacts taxes.
Rising Home Prices and Their Impact on Taxes
- Median home prices in Sedona are above $1,000,000 in 2025.
- Higher values mean higher assessed values, leading to larger tax bills.
Predictions for Future Property Tax Rates
- As Sedona continues attracting retirees and investors, taxes may rise slightly.
- However, Arizona’s tax system prevents drastic year-over-year jumps, offering some stability.
Tips for Homeowners and Investors in Sedona
Reducing Your Property Tax Burden
- Apply for all eligible exemptions (senior, veteran, conservation).
- Double-check your assessed value annually for accuracy.
- Consider using tax planning strategies if you own multiple properties.
Working with Local Tax Professionals
Hiring a Sedona-based CPA, tax attorney, or real estate advisor can help optimize your financial planning. They can guide you on appeals, exemptions, and long-term strategies.
Frequently Asked Questions (FAQs)
1. What is the average property tax rate in Sedona, Arizona?
The average property tax rate in Sedona ranges from 0.43%(Yavapai County) to 0.49%(Coconino County), depending on location and county jurisdiction.
2. Do retirees in Sedona get property tax breaks?
Yes. Seniors 65+ may qualify for the Valuation Protection Program, which freezes assessed values, preventing tax hikes from rising market prices.
3. Which county collects Sedona property taxes?
Sedona spans Yavapai County and Coconino County, so the location of your home determines which county assessor manages your taxes.
4. Can property taxes in Sedona increase every year?
Yes, but Arizona limits large jumps by using Limited Property Value (LPV), which restricts how much assessed value can increase annually.
5. What happens if I don’t pay my property taxes in Sedona?
Unpaid property taxes accrue penalties, and the county can eventually sell a tax lien on your property to investors.
6. Are short-term rental properties taxed differently in Sedona?
Short-term rental owners must pay standard property taxes plus additional lodging taxes, which can significantly impact profitability.
Conclusion: What Homeowners Should Expect in 2025
Property taxes in Sedona, Arizona, remain relatively low compared to the national average, but they are rising in step with the city’s booming real estate market. Homeowners and investors should expect modest increases as infrastructure and school funding grow with demand.
By understanding how property taxes are calculated, available exemptions, payment schedules, and appeal options, Sedona property owners can better manage their expenses and protect their investments.
Whether you’re retiring in Sedona or investing in a vacation rental, being proactive about property taxes ensures smoother financial planning in 2025 and beyond.
Please seek the advice of a tax professional before acting on any of the above information. Az Association of Accounting and Tax Professionals https://aaatp.wildapricot.org/
🔗 Recommended Resource: For the latest updates, visit the official Yavapai County Assessor’s Office.
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