Arizona Income Tax Calculator
Calculate your total tax burden in Arizona. See AZ state income tax (2.5% top rate), federal tax, and FICA combined. Free, instant, private.
The state of Arizona uses a flat 2.5% state income tax on all taxable income in 2026. State standard deduction: $14,600 single / $29,200 married. Plus federal income tax (10%-37% across 7 brackets) and FICA (Social Security 6.2%, Medicare 1.45%). Property tax averages 0.62% and sales tax averages 8.37%. Flat 2.5% rate since 2023. 25% capital gains subtraction. Generous charitable contribution credits.
Arizona Income Tax Calculator
Pre-filled with Arizona median: $72,581
Your Total Tax Burden
$14,584
Take-Home: $57,997 · Effective Rate: 20.1%
Federal Tax
$7,582
10.4% eff.
AZ State Tax
$1,450
2.0% eff.
FICA
$5,552
7.6% eff.
Take-Home
$57,997
79.9% kept
Tax Breakdown
Arizona Tax Bracket Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $72,581.00 | $6,048.42 |
| Federal Income Tax | -$7,581.82 | -$631.82 |
| Arizona State Tax | -$1,449.53 | -$120.79 |
| Social Security (6.2%) | -$4,500.02 | -$375.00 |
| Medicare (1.45%) | -$1,052.42 | -$87.70 |
| Take-Home Pay | $57,997.21 | $4,833.10 |
Marginal Tax Rate
2.5%
AZ state only
Effective Tax Rate
20.1%
All taxes combined
Arizona Tax System Overview
Arizona adopted a flat 2.5% income tax rate in 2023, making it one of the most tax-friendly states. The state offers a 25% subtraction on net capital gains, lowering the effective investment tax rate to 1.875%. Property taxes are low at 0.62%.
Top Income Tax
2.5%
Property Tax
0.62%
Sales Tax (Avg)
8.37%
Median Income
$72,581
Other Taxes in Arizona
Capital Gains Tax
25% exclusion on net capital gains (effective 1.875% rate)
Property Tax
Average effective rate of 0.62%. On a $300,000 home, this equals approximately $1,860 per year, or $155 per month.
Sales Tax
State rate of 5.6%, with a combined average of 8.37% including local taxes.
Filing Tips for Arizona
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.
- Maximize pre-tax contributions to 401(k) ($23,500 limit in 2026, $31,000 if 50+) to reduce both federal and AZ state taxable income.
- Use an HSA if you have a high-deductible health plan. Contributions ($4,400 individual, $8,750 family) are pre-tax and reduce your tax burden.
- Review your W-4. If you regularly get large refunds, adjust your withholding to keep more money in each paycheck throughout the year.
Compare Arizona to Nearby States
If you lived in a neighboring state instead, here is how your state tax would change on $72,581 income:
| State | Top Rate | State Tax | Difference |
|---|---|---|---|
| Arizona | 2.5% | $1,450 | — |
| California | 13.3% | $2,905 | +$1,455 |
| Nevada | None | $0 | Save $1,450 |
| Utah | 4.65% | $3,375 | +$1,925 |
| Colorado | 4.4% | $2,534 | +$1,084 |
Explore All 50 State Tax Calculators
Compare income tax rates, property taxes, and sales taxes across all US states and DC.
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Frequently Asked Questions
What is the income tax rate in Arizona?
Arizona has a flat income tax rate of 2.5%. This means all taxable income is taxed at the same rate regardless of how much you earn. Flat 2.5% rate since 2023. 25% capital gains subtraction. Generous charitable contribution credits.
How much state tax will I pay in Arizona on $72,581?
On income of $72,581 filing single in Arizona, you would pay approximately $1,450 in state income tax (effective rate of 2.0%). This is after the state standard deduction of $14,600.
Does Arizona tax capital gains?
25% exclusion on net capital gains (effective 1.875% rate). Capital gains treatment varies by state — some tax them as regular income while others offer exclusions or preferential rates.
How does Arizona compare to neighboring states for taxes?
Arizona's neighboring states include California (13.3% top rate), Nevada (no income tax), Utah (4.65% top rate). Property tax rates, sales taxes, and cost of living should also be considered when comparing overall tax burden. Use the calculator above to compare your specific tax liability across states.
What is the Arizona state income tax filing deadline for 2026?
Arizona state income tax returns are due April 15, 2026 (matching the federal deadline). If April 15 falls on a weekend or holiday, the deadline shifts to the next business day. Extensions: Arizona typically grants automatic 6-month extensions to October 15, 2026, but tax owed must still be paid by April 15 to avoid penalties.
Does Arizona tax retirement income, Social Security, and pensions?
Arizona taxes retirement income with state-specific exclusions. Social Security: only 11 states tax SS benefits in 2026 (CO, CT, KS, MN, MT, NM, RI, UT, VT, WV, MO partially); Arizona's treatment varies. Pensions and 401(k)/IRA withdrawals are generally taxable as ordinary income at 2.5% top rate, with possible exclusions for federal/military pensions or low-income seniors. Check Arizona's 2026 retirement income exclusion thresholds.
What deductions and credits are unique to Arizona in 2026?
Arizona offers standard deduction of $14,600 (single) / $29,200 (married). Additional state-specific items typically include: Arizona-specific tax credits (e.g., property tax credit, education credit, EITC supplement if available), retirement income exclusions, and state-conformity to federal deductions like SALT cap, mortgage interest, charitable contributions. Check Arizona's state tax form for the full list of state-specific credits in 2026.
If I work remotely in Arizona for an out-of-state employer, what tax do I pay?
As a Arizona resident working remotely for an out-of-state employer, the rules depend on reciprocity agreements. Reciprocity-pair states (PA-NJ, IL-IA, MI-OH, etc.) let you pay tax only to Arizona. Without reciprocity, you may pay tax to BOTH states, then claim a credit on Arizona's return for taxes paid to the work state. NY, PA-Philadelphia, and other "convenience of employer" jurisdictions can override these rules. Verify your employer's state tax setup.