Tax Bracket for Arizona (2026)
Last updated: January 15, 2026
Arizona (AZ) Key Facts
Tax Structure
Flat rate
Top Marginal Rate
2.5%
Number of Brackets
1
Tax Year
2,026
How This Calculator Works in Arizona
This calculator shows which Arizona tax bracket your income falls into. Enter your income and filing status to see marginal and effective rates.
Arizona Overview
Arizona levies a flat income tax rate of 2.5% on all taxable income. Unlike progressive states with multiple brackets, every dollar earned in Arizona is taxed at the same rate, making calculations predictable and straightforward.
How Arizona Compares
Arizona's top rate of 2.5% compares to California at 13.3% and Nevada at 0%. Comparing effective rates is more meaningful than top rates alone.
| State | Top Rate | Notes |
|---|---|---|
| California | 13.3% | California has an income tax rate of 13.3%. |
| Nevada | 0% | Nevada has an income tax rate of 0%. |
| New Mexico | 5.9% | New Mexico has an income tax rate of 5.9%. |
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 uses a flat income tax rate of 2.5%, meaning all taxable income is taxed at the same rate regardless of how much you earn.
- 2With a flat tax, your marginal rate and effective state rate are the same—2.5%.
- 3Federal brackets still apply progressively on top of Arizona's flat 2.5% rate.
- 4Pre-tax retirement contributions reduce both your federal bracket and the income subject to Arizona's flat 2.5%.
- 5Arizona's flat 2.5% is below the national average of about 5%, making withholding calculations straightforward.