Taxes in Phoenix, Arizona
Complete tax guide for Phoenix, AZ. State income tax up to 2.5%, 0.59% property tax, 8.6% sales tax. Calculate your total tax burden.
State Income Tax
2.5%
Arizona
Property Tax
0.59%
Effective rate
Sales Tax
8.6%
Combined rate
Tax Burden
Low
Phoenix, AZ Tax Overview
No local income tax; growing tech hub with moderate tax burden
Population
1,608,139
Median Income
$62,055
Cost of Living
103.2 (100 = avg)
State Income Tax
2.5%
Median Home Price
$365,000
Phoenix Tax Calculator
Pre-filled with Phoenix median: $62,055
Total Tax Burden in Phoenix
$11,707
Take-Home: $50,348 · Effective Rate: 18.87%
Federal Tax
$5,408
8.72% eff.
AZ State
$1,551
2.50% eff.
FICA
$4,747
7.65% eff.
Take-Home
$50,348
81.13% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $62,055.00 | $5,171.25 |
| Federal Income Tax | -$5,408.10 | -$450.67 |
| Arizona State Tax | -$1,551.38 | -$129.28 |
| Social Security (6.2%) | -$3,847.41 | -$320.62 |
| Medicare (1.45%) | -$899.80 | -$74.98 |
| Take-Home Pay | $50,348.32 | $4,195.69 |
Property Tax in Phoenix
Median Home
$365,000
Annual Tax
$2,154
Monthly Tax
$179
Effective Rate
0.59%
Sales Tax in Phoenix
Combined Rate
8.6%
State Portion
~6.1%
Local Portion
~2.5%
The combined sales tax rate in Phoenix is 8.6%, which is above the national average of 7.12%. On a $100 purchase, you would pay $8.60 in sales tax.
Tax Burden Comparison
| Tax Type | Phoenix | Arizona Avg | National Avg |
|---|---|---|---|
| Income Tax | 2.5% | 2.5% | 4.6% |
| Property Tax | 0.59% | ~0.59% | 1.1% |
| Sales Tax | 8.6% | ~8.6% | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Phoenix Residents
- Arizona's income tax rate of 2.5% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Property tax in Phoenix (0.59%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- The combined sales tax rate of 8.6% is relatively high. Consider making large purchases in lower-tax jurisdictions or online retailers that do not charge local tax rates.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Arizona
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LowCalculate Your Full Arizona Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Phoenix, AZ?
Phoenix, Arizona has a state income tax rate up to 2.5%. The property tax rate is 0.59% and the combined sales tax rate is 8.6%. No local income tax; growing tech hub with moderate tax burden
How much is property tax in Phoenix?
The effective property tax rate in Phoenix is 0.59%. On the median home price of $365,000, this equals approximately $2,154 per year or $179 per month. This is below the national average of 1.1%.
What is the sales tax rate in Phoenix?
The combined sales tax rate in Phoenix is 8.6%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Phoenix's tax burden compare to other cities?
Phoenix has a low overall tax burden. The effective total tax rate for a median-income household is approximately 26.7%. The combination of 2.5% state income tax, 0.59% property tax, and 8.6% sales tax determines the total burden. Cost of living index is 103.2 (100 = national average).
Are there any local taxes in Phoenix?
Phoenix does not impose a separate local or city income tax. Residents pay the state income tax of 2.5%, federal income tax, and FICA (Social Security and Medicare). No local income tax; growing tech hub with moderate tax burden