Income Tax for Arizona (2026)

How This Calculator Works in Arizona

This calculator applies Arizona's 2026 tax brackets and rates to estimate your state income tax liability. Enter your income and filing status to see your marginal rate, effective rate, and estimated tax owed.

Arizona Overview

Arizona adopted a flat income tax rate of 2.5% in 2023, replacing its former progressive system with rates up to 4.5%. This makes Arizona one of the lowest-tax income-tax states in the country, trailing only North Dakota among states with a functioning income tax. The dramatic rate reduction has accelerated migration from California and other high-tax Western states.

How Arizona Compares

Arizona's top income tax rate of 2.5% compares to California at 13.3% and Nevada at 0%. The rate differences can meaningfully impact take-home pay for workers near state borders.

Arizona's income tax rate of 2.5% compares to a national average of approximately 5.04%. This is below the national average.

Tips for Arizona Residents

• 1Arizona switched to a flat income tax rate of 2.5% in 2023, down from a progressive system that previously had rates up to 4.5%.
• 2At 2.5%, Arizona now has one of the lowest income tax rates in the country — lower than most flat-tax states and competitive with no-income-tax states when you factor in Arizona's moderate property taxes.
• 3Arizona does not tax Social Security benefits, and offers a $2,500 deduction for certain federal and state pension income.
• 4If you're a remote worker or retiree considering a move, Arizona's combination of low income tax, moderate property tax (~0.62%), and warm climate makes it increasingly competitive with Nevada and Texas.
• 5Arizona conforms to the federal standard deduction amounts, so most filers will take the standard deduction on their state return as well.

Frequently Asked Questions