Costs of Selling Land in Arizona
Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.
- Cash offer in 24 hours
- No fees or commissions
- We pay closing costs
- Close in as few as 7 days
Seller Costs in Arizona at a Glance
| Cost | Typical amount | Who usually pays |
|---|---|---|
| Transfer tax | None; barred by the Arizona Constitution | Not applicable |
| Affidavit of Property Value fee | $2 | Set by the contract |
| Deed recording fee | $30 per document (flat) | Set by the contract |
| Title insurance | Varies by company; get a quote | Set by the contract |
| Escrow or closing fee | Varies by company; get a quote | Set by the contract |
| Prorated property taxes | Your share for the months you owned the land | Seller for their months; back taxes paid from the sale |
| Federal capital gains tax | 0%, 15% or 20% on long-term gain (held more than 1 year); regular income rates if held 1 year or less | Seller, on the tax return |
| State income tax on the gain | Flat 2.5%; 25% of net long-term gain on assets bought after 2011 is subtracted (1.875% effective) | Seller, on the tax return |
Example: Seller Costs on a $25,000 Land Sale
- Sale price
- $25,000
- Transfer tax
- $0
- Affidavit of Property Value fee, if the contract assigns it to the seller
- $-2
- Net before escrow, title, recording, prorated taxes and income tax
- $24,998
Arizona has no transfer tax. $25,000 minus the $2 affidavit fee = $24,998. The $30 deed recording fee, escrow fee and title policy are often negotiated; they are not shown because who pays them is set by your contract. Capital gains tax depends on your basis and income.
Selling Costs in Arizona: What to Know
Arizona does not tax the sale of real estate. The state constitution bars any new transfer tax. Sellers still pay for escrow, title insurance, a share of the year's property taxes and tax on any gain. Recording a deed costs $30, and most sales need an Affidavit of Property Value with a $2 fee.
This page lists each cost, who usually pays it, and where the number comes from. A worked example shows a $25,000 sale. If you want to skip most of these costs, you can get a cash offer for your Arizona land.
No Arizona transfer tax
Article 9, Section 24 of the Arizona Constitution bars the state, counties, cities and districts from adding any new tax or fee on the sale or transfer of real property. It applies to taxes not in place on December 31, 2007. So there is no state, county or city transfer tax on your land sale.
Most sales need an Affidavit of Property Value under A.R.S. 11-1133. The buyer and the seller, or their agents, sign it. The filing fee is $2. Some transfers are exempt under A.R.S. 11-1134.
Recording fees
Under A.R.S. 11-475, county recorders charge a flat $30 per document, not a per-page fee. Cochise County lists this rate, which has applied since July 1, 2019.
Who pays what by custom
No Arizona statute we checked assigns escrow fees, title insurance or recording to the buyer or the seller. The purchase contract decides it. Read the closing cost section before you sign.
The seller pays to clear their own liens and any unpaid property taxes, because the buyer needs clear title.
Escrow, title company or attorney
Most Arizona sales close through an escrow company, often part of a title company. The escrow agent holds the money, records the deed and the affidavit, and pays off liens and taxes. An attorney is not required by the state sources we checked, but you can hire one.
Escrow fees and title insurance premiums vary by company. Ask for a written quote before you sign.
Prorated property taxes
Property taxes are split at closing so each side pays for the part of the year they owned the land. Your settlement statement shows the credit or charge. Any back taxes are paid from the sale proceeds at closing.
Capital gains tax basics (federal and Arizona)
You owe tax on the gain, not on the full price. The gain is the sale price minus your basis (what you paid plus improvements) and minus your selling costs. The IRS explains basis in Topic 703.
If you owned the land for more than one year, the federal gain is long-term and is taxed at 0%, 15% or 20%, based on your taxable income. For 2025, a single filer pays 0% on long-term gains when taxable income is $48,350 or less. Land held one year or less is taxed as regular income. See IRS Topic 409.
Arizona taxes income at a flat 2.5%. Under A.R.S. 43-1022, you can subtract 25% of a net long-term capital gain on an asset bought after December 31, 2011. That makes the state rate on such a gain 1.875%. Check the current Arizona return instructions, since this rule can change.
The closing agent usually reports the sale to the IRS on Form 1099-S. This page is general information, not legal or tax advice. Confirm the numbers with your closing agent or a tax professional.
How selling to a cash buyer changes the costs
A listing with an agent adds a commission on top of the costs above. When you sell to EasyLotBuyer, there are no fees or commissions, and we pay the closing costs. You get a cash offer within 24 hours and can close in as few as 7 days.
We also buy land with back taxes, liens, title issues or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale, so you do not need cash up front. Your capital gains tax is still your own, so keep your closing statement for your tax return.
- No agent commission
- No closing costs for you: we pay them
- Back taxes paid at closing from the sale
- Cash offer within 24 hours
Sources
- 1. azleg.gov
- 2. azdor.gov
- 3. azleg.gov
- 4. cochise.az.gov
- 5. azdor.gov
- 6. azleg.gov
- 7. irs.gov
- 8. irs.gov
- 9. irs.gov
Rules and fees change; check with the county before you act on them.
Selling Cost Questions in Arizona
Does Arizona have a real estate transfer tax?
No. The Arizona Constitution bars new taxes on the sale or transfer of real property. There is a $2 fee for the Affidavit of Property Value.
How much does it cost to record a deed in Arizona?
County recorders charge a flat $30 per document under A.R.S. 11-475.
Do I need an attorney to sell land in Arizona?
Not under the state sources we checked. Most sales close through an escrow or title company. You can still hire an attorney.
What is the Arizona capital gains tax rate on land?
Arizona taxes income at a flat 2.5%. You can subtract 25% of a long-term gain on assets bought after 2011, so the rate on that gain is 1.875%. This is not tax advice.
Who pays closing costs when selling land in Arizona?
The purchase contract decides it. When you sell to us, we pay the closing costs.
Can I sell Arizona land with back taxes?
Yes. We buy land with back taxes, and the taxes are paid at closing from the sale.