Self-Employment Tax for Arizona (2026)
Arizona (AZ) Key Facts
Federal S E Tax Rate
15.3%
State Income Tax Rate
2.5%
Combined S E + State Rate
17.8%
S E Tax Components
12.4% Social Security + 2.9% Medicare
How This Calculator Works in Arizona
This calculator estimates your total self-employment tax in Arizona, including the federal 15.3% SE tax and Arizona's state income tax. Enter your net SE income to see your liability.
Arizona Overview
Self-employed workers in Arizona pay the federal 15.3% SE tax plus state income tax at flat 2.5%, for a combined burden of approximately 17.8%. Quarterly estimated payments are typically required for both federal and state obligations.
How Arizona Compares
Arizona's combined SE burden of 17.8% compares to California at 28.6% and Nevada at 15.3%. State income tax creates meaningful differences between states.
| State | Top Rate | Notes |
|---|---|---|
| California | 13.3% | California has a state income tax on SE income rate of 13.3%. |
| Nevada | 0% | Nevada has a state income tax on SE income rate of 0%. |
| New Mexico | 5.9% | New Mexico has a state income tax on SE income rate of 5.9%. |
Arizona's state income tax on SE income rate of 2.5% compares to a national average of approximately 5.04%. This is below the national average.
Tips for Arizona Residents
- 1Federal self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) regardless of state.
- 2Arizona adds state income tax at flat 2.5% on self-employment income, for a combined rate of about 17.8%.
- 3Make quarterly estimated payments for both federal and Arizona state taxes to avoid underpayment penalties.
- 4Deduct half of your SE tax on your federal return and track all business expenses to minimize net self-employment income.
- 5Consider whether an S-Corp election could reduce your SE tax burden if your net income exceeds $50,000-$60,000.