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Arizona State Income Tax Calculator

Calculate your 2026 Arizona state income tax. See your bracket breakdown, effective rate, and how Arizona compares to neighboring states.

2.5% Flat Tax
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Full-year residents only; filers under 65, not blind and not claimable on another return. Eligible pre-tax wage deductions only. No retirement, business income, QBI, NOLs, Schedule 1-A deductions or special state adjustments. Enter itemized deductions after applicable limits. Separate state credits are excluded except Iowa ordinary exemption credits. Other facts require a separate calculation.

Provisional 2026 estimated-payment method

State Income Tax
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Arizona · 2026
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Weekly Allocation After Income Tax
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The annual amount is gross income minus entered pre-tax deductions and modeled federal and state income tax. Monthly and weekly amounts divide it by 12 and 52. These allocations exclude Social Security and Medicare (FICA), local taxes, other payroll taxes, and unmodeled paycheck deductions. They do not estimate paycheck take-home or actual withholding.

Effective State Income Tax Rate vs Neighboring States

About Arizona state taxes (Tax year 2026)

Arizona has a flat income tax rate of 2.5% on all taxable income, effective 2023. This replaced a prior progressive system and gives Arizona one of the lowest flat rates in the country.

Groceries are exempt from state sales tax. Prescription drugs are exempt.

Arizona's top income tax rate is 2.5% for tax year 2026. Its combined state and local sales tax averages 8.54%.

Filing in Arizona: returns for tax year 2026 are administered by the Arizona Department of Revenue and are generally filed in 2027 by the federal April deadline unless Arizona declares a state-specific extension. Tax type on this return: Flat. Top marginal rate: 2.5%. State sales-tax rate: 5.6%. For the most current contact info, see the Federation of Tax Administrators directory.

Arizona — What is Arizona's income tax rate? Arizona has a flat income tax rate of 2.5% on all taxable income, one of the lowest flat rates in the nation. This rate took effect in 2023.

Arizona — Does Arizona tax groceries? No, groceries (unprepared food) are exempt from Arizona's state transaction privilege tax. However, some cities may impose local taxes on food.

Arizona — How does Arizona's tax burden compare? Arizona's 2.5% flat rate is significantly below the national average. Combined with no estate tax and moderate sales taxes, Arizona is considered a tax-friendly state.

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Keep the same state in view while you compare tax, benefits, and wage rules across Calculover.

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Reviewed methodology

How this page is reviewed

High YMYL · Last verified 2026-11-06

See methodology, assumptions & sources
Risk tierHigh YMYL
AuthorCalculover Editorial Team Tax education
Editorial ownerCalculover Tax & Payroll Desk State-tax methodology owner
ReviewerCalculover Editorial Review Government-source and limitation review
Last reviewed2026-11-06
Last verified2026-11-06
Data effective date2026-01-01
JurisdictionArizona

Methodology

These pages estimate annual state income tax for the selected 2026 jurisdiction and filing status. The route's coverage panel identifies the supported income basis, deductions, credits and exclusions.

Assumptions

  • Enter the income basis and eligible pre-tax deductions requested by the calculator; gross wages, federal AGI and state AGI are not interchangeable.
  • Some methods require confirmed state facts or explicit projection assumptions. An unavailable component is not zero tax.

Limitations

  • The estimate excludes unmodeled income, adjustments, local taxes and special filing situations. Utah's indexed-credit assumptions remain provisional while final 2026 instructions are pending.
  • Annual liability differs from withholding and paycheck take-home. Confirm the current official forms and source versions for a complete return.

Sources

Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.

Arizona Income Tax FAQs

What is the Arizona income tax rate?

Arizona taxes all taxable income at a flat rate of 2.50%. This applies equally to all income levels regardless of how much you earn.

How is Arizona income tax calculated?

Multiply your taxable income by 2.50%. For example, a taxpayer with $75,000 in taxable income would owe $1,875 in Arizona income tax.

Does Arizona have a standard deduction?

Arizona uses the published 2026 estimated-payment method with 2025 deductions: $15,750 single, $31,500 joint and $23,625 head of household. This provisional estimate does not certify the indexed deduction for a final 2026 return. Arizona credits, charitable deduction increases and special income adjustments are excluded.

How can I reduce my Arizona income taxes?

Common strategies include maximizing pre-tax retirement contributions (401k, IRA), contributing to an HSA, and taking advantage of any available state tax credits.

How does Arizona's 2.50% flat tax compare to neighboring states?

Arizona's flat rate of 2.50% can be compared to neighboring states using the chart on this page. States with no income tax offer the lowest burden, while progressive states may be higher or lower depending on your income level.