Arizona · Qualified Charitable Distribution (QCD)
Qualified Charitable Distribution (QCD) in Arizona (2026)
Donate up to $111K directly from an IRA to a qualified charity in 2026, excluding the otherwise taxable amount from income. Arizona has a flat 2.5% income tax, so a Arizona filer's combined marginal rate on the next dollar at $72,581 of income is about 24.5% (22% federal + 2.5% AZ).
2026 savings example for Arizona
Planning estimate for a single filer earning $72,581 (Arizona median household income in LevyIO's state dataset) who removes $5,000 from taxable income. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; AZ tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$1,225
Federal savings
$1,100
$7,138 → $6,038 · 22% bracket
AZ state savings
$125
$1,450 → $1,325 · 2.5% marginal
Combined marginal rate
24.5%
≈ $245 saved per $1,000 deducted
Statutory maximum for this item in LevyIO's dataset: $111,000.
Federal × Arizona marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The AZ column is the state marginal rate at the midpoint of each range. The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | AZ marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 2.5% | 12.5% | $125 |
| 12% | $28,500 - $66,500 | 2.5% | 14.5% | $145 |
| 22% | $66,500 - $121,800 | 2.5% | 24.5% | $245 |
| 24% | $121,800 - $217,875 | 2.5% | 26.5% | $265 |
| 32% | $217,875 - $272,325 | 2.5% | 34.5% | $345 |
| 35% | $272,325 - $656,700 | 2.5% | 37.5% | $375 |
| 37% | Over $656,700 | 2.5% | 39.5% | $395 |
Eligibility & forms
IRA owners aged 70½ or older
- Must be 70½ or older when the distribution is made
- Transfer must go directly from IRA trustee to qualified charity
- Up to $111,000 per taxpayer for 2026
- Can satisfy required minimum distributions but is not claimed as a Schedule A charitable deduction
Federal forms: Form 1099-R, Form 1040
Arizona filing notes
Arizona's flat 2.5% rate simplifies planning. Use the 25% capital gains subtraction on investment income. Arizona offers generous tax credits for charitable contributions and school tuition organizations.
Common mistakes: Distributing to yourself first instead of direct IRA-to-charity transfer; Claiming a charitable deduction for the excluded QCD amount; Using an ineligible recipient such as a donor-advised fund or private foundation; Forgetting to keep the charity acknowledgment and 1099-R records.
Frequently asked questions
How much can the Qualified Charitable Distribution (QCD) save a Arizona taxpayer in 2026?
In LevyIO's example, a single filer with $72,581 of income (the Arizona median household income in our state dataset) who removes $5,000 from taxable income saves about $1,100 in 2026 federal tax (22% marginal bracket) plus about $125 in Arizona tax (2.5% state marginal rate), roughly $1,225 combined. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's AZ bracket data, not a survey figure.
What is the Arizona income tax rate for 2026?
Arizona has a flat 2.5% income tax. The AZ standard deduction in LevyIO's dataset is $14,600 single / $29,200 married. Flat 2.5% rate since 2023. 25% capital gains subtraction. Generous charitable contribution credits.
Who qualifies for the Qualified Charitable Distribution (QCD) in Arizona?
IRA owners aged 70½ or older. The federal rules are the same in every state; the requirements are: Must be 70½ or older when the distribution is made; Transfer must go directly from IRA trustee to qualified charity; Up to $111,000 per taxpayer for 2026; Can satisfy required minimum distributions but is not claimed as a Schedule A charitable deduction. Arizona filers should confirm on the AZ return whether the state follows the federal treatment.
Which forms do I file to claim the Qualified Charitable Distribution (QCD)?
Federal: Form 1099-R, Form 1040. Arizona: check the Arizona Department of Revenue instructions for the matching state schedule. Common mistakes: Distributing to yourself first instead of direct IRA-to-charity transfer; Claiming a charitable deduction for the excluded QCD amount; Using an ineligible recipient such as a donor-advised fund or private foundation; Forgetting to keep the charity acknowledgment and 1099-R records.
Qualified Charitable Distribution (QCD) in other states
- Full Qualified Charitable Distribution (QCD) guide (all states)
- Qualified Charitable Distribution (QCD) in California
- Qualified Charitable Distribution (QCD) in New Mexico
- Qualified Charitable Distribution (QCD) in Utah
- Qualified Charitable Distribution (QCD) in Alabama
- Qualified Charitable Distribution (QCD) in District of Columbia
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.