At a glance
| State estate tax | No |
|---|---|
| Estate top rate | — |
| Inheritance tax | No |
| Small-estate ceiling | $200,000 personal / $300,000 realA.R.S. § 14-3971 · eff. Sep 26, 2025 (HB2116) |
| TOD deed for real estate | AvailableA.R.S. § 33-405 (beneficiary deed) · 2001 |
| Community-property state | Yes |
Estate tax
Arizona does not levy its own estate tax. An estate here is subject only to the federal estate tax, which most estates never owe — the federal exclusion is measured in the millions. See the federal lifetime exemption for how that works.
Inheritance tax
Arizona has no inheritance tax — beneficiaries are not taxed on what they receive by the state. Arizona imposes no inheritance tax; beneficiaries owe no state tax on what they inherit, regardless of relationship.
Probate basics
Successors can bypass formal probate with a small-estate affidavit: personal property up to $200,000 (30 days after death) and real property up to $300,000 in equity (6 months after death). These ceilings were raised from $75,000/$100,000 effective September 26, 2025 and apply to affidavits filed on or after that date.
Arizona is a community-property state, which affects how a married couple owns property and can give a surviving spouse a full basis step-up on community assets. A transfer-on-death deed for real estate is Available A.R.S. § 33-405 (beneficiary deed) · 2001. The probate deadlines for this state — filing the will, the creditor-claim window, the inventory — are cited in the Executor & Heir’s Guide.
State-specific quirks
Community property enables a full (double) basis step-up
Because Arizona is a community-property state, when the first spouse dies both halves of community property generally get a new basis at date-of-death value (IRC § 1014(b)(6)), not just the decedent's half — which can sharply cut later capital-gains tax. Assets must be correctly titled as community property to qualify.
The 2025 affidavit ceilings reopen estates that once needed probate
Because eligibility is measured at filing, estates that exceeded the old $75,000/$100,000 limits but fall under the new $200,000/$300,000 limits may now qualify for the affidavit process — even for deaths before September 26, 2025.
A beneficiary deed avoids probate but not liens
An Arizona beneficiary deed (A.R.S. § 33-405) must be recorded before death, provides no incapacity planning, and passes the property subject to existing liens and encumbrances, so it should be coordinated with the overall plan rather than used in isolation.
Where to read next
- the federal lifetime exemption — how the far larger federal exclusion works — and why a state tax can still apply below it
- funding a revocable trust — the most common way to keep property out of probate entirely
- the ILIT cluster — keeping a life-insurance death benefit out of a taxable estate
- the Executor & Heir's Guide — the probate deadlines for this state, cited to the statute
- ← Back to the 51-jurisdiction comparison
Sources & methodology
Methodology & sources
Every tax figure on this page links to the primary source it was verified against — a Arizona statute or department-of-revenue page — with that source’s own effective date. Aggregator round-ups are never used as a source. State death and probate law changes every legislative session; this page carries the date it was last re-verified, and any figure that could not be confirmed from a primary source is flagged for you to check with the state rather than guessed. See our editorial standards.
This page is educational and is not legal or tax advice. Whether a death tax applies turns on residency, where property sits, and how title is held — details a general page cannot resolve. Confirm your own situation with a professional licensed in Arizona.
Last verified July 20, 2026.