Arizona tenants no longer have to pay taxes on rent
Most Arizona renters will see a slight decrease in their monthly payments now that a new law outlawing taxes on rent is in effect.
Housing and rent prices have skyrocketed over the past decade and supporters of the tax ban say even slight relief can help families struggling to make ends meet.
Gov. Katie Hobbs signed the bill in 2023 forbidding cities from charging taxes on rent.
She initially vetoed a similar bill, citing concerns about the impact it would have on city budgets but later signed it as part of a compromise with legislative Republicans on the continuation of a Maricopa County transportation tax.
The tax ban didn’t take effect until Jan. 1, giving cities a chance to prepare for the lost revenue.
