OZ 2.0 eligibility

Phoenix Opportunity Zones

Phoenix, Arizona has 145 census tracts eligible for OZ 2.0 designation. Demographics, eligible tract list, and state filing tracker.

145

Eligible Tracts

1,608,139

City Population

$64,927

Median Household

15.3%

Poverty Rate

How OZ 2.0 applies to Phoenix

Phoenix sits within Arizona, which is running its own OZ 2.0 selection process under the federal framework. The state's lead agency is Arizona Commerce Authority (ACA). Arizona has 500 census tracts eligible under OZ 2.0 — it can nominate up to 125 to Treasury.

145 of those tracts are inside Phoenix. OZ 2.0's tightened eligibility criteria — median family income at or below 70% of the state/metro reference (down from 80% under OZ 1.0), with the contiguous-tract option eliminated — means fewer Phoenix neighborhoods qualify than under the 2018 OZ 1.0 map. How states choose OZ 2.0 tracts →

For investors targeting Phoenix, the OZ 2.0 tax benefits — rolling 5-year deferral, 10% basis step-up (or 30% for Rural QROFs in qualifying rural tracts), and 100% federal-tax-free exclusion of QOF appreciation after a 10-year hold — apply to investments made on or after January 1, 2027. See the full OZ 1.0 vs 2.0 comparison →

What Phoenix's demographics imply: with a median household income of $64,927 and a 15.3% poverty rate, Phoenix is likely to retain a meaningful share of designated tracts in higher-poverty census areas, while higher-income neighborhoods that qualified through the contiguous-tract pathway under OZ 1.0 will lose designation under OZ 2.0.