Taxes in Prescott, Arizona
Complete tax guide for Prescott, AZ. State income tax up to 2.5%, 0.65% property tax, 6.29% sales tax. Calculate your total tax burden.
State Income Tax
2.5%
Arizona
Property Tax
0.65%
Effective rate
Sales Tax
6.29%
Combined rate
Tax Burden
Low
Prescott, AZ Tax Overview
Population
45,827
Median Income
$54,400
Cost of Living
104.1 (100 = avg)
State Income Tax
2.5%
Median Home Price
$333,000
Prescott Tax Calculator
Pre-filled with Prescott median: $54,400
Total Tax Burden in Prescott
$10,011
Take-Home: $44,389 · Effective Rate: 18.40%
Federal Tax
$4,490
8.25% eff.
AZ State
$1,360
2.50% eff.
FICA
$4,162
7.65% eff.
Take-Home
$44,389
81.60% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $54,400.00 | $4,533.33 |
| Federal Income Tax | -$4,489.50 | -$374.13 |
| Arizona State Tax | -$1,360.00 | -$113.33 |
| Social Security (6.2%) | -$3,372.80 | -$281.07 |
| Medicare (1.45%) | -$788.80 | -$65.73 |
| Take-Home Pay | $44,388.90 | $3,699.08 |
Property Tax in Prescott
Median Home
$333,000
Annual Tax
$2,165
Monthly Tax
$180
Effective Rate
0.65%
Sales Tax in Prescott
Combined Rate
6.29%
State Portion
~3.8%
Local Portion
~2.5%
The combined sales tax rate in Prescott is 6.29%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.29 in sales tax.
Tax Burden Comparison
| Tax Type | Prescott | Arizona Avg | National Avg |
|---|---|---|---|
| Income Tax | 2.5% | 2.5% | 4.6% |
| Property Tax | 0.65% | ~0.65% | 1.1% |
| Sales Tax | 6.29% | ~6.29% | 7.12% |
| Overall Burden | Low | — | Moderate |
About Taxes in Prescott
Prescott has a population of approximately 45,827 residents with a median household income of $54,400. The cost of living index is 104.1 (4.1% higher than the national average of 100).
Tax burden classification: Low. Effective combined tax rate of 23.6% includes federal, state, FICA, property, and sales taxes for a typical Prescott household.
Official Tax Resources for Arizona
For authoritative Arizona tax forms, filing deadlines, and the latest legislative updates, consult these official government resources:
- Arizona Department of Revenue — official state revenue agency
- Arizona Individual Income Tax Forms — current tax year forms and instructions
- Arizona Property Tax Information — assessment, exemptions, and appeals
- IRS Federal Tax Forms and Instructions — federal income tax filing
Tax Saving Tips for Prescott 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 Prescott (0.65%) is below the national average of 1.1%. This makes homeownership more affordable here relative to property tax burden.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,400 individual, $8,750 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
Other Cities in Arizona
Phoenix
LowTucson
LowMesa
LowChandler
ModerateGilbert
ModerateGlendale
LowScottsdale
ModeratePeoria
LowTempe
LowSurprise
LowSources & Methodology
Tax rate data on this page is compiled from official government sources and updated for the 2026 tax year. Calculations follow the IRS-published 2026 federal tax brackets, FICA rates (6.2% Social Security up to $176,100 wage base, 1.45% Medicare), and Arizona state tax provisions. Property tax estimates use Prescott's median home value of $333,000and the local effective property tax rate of 0.65%.
- • Federal tax brackets and standard deductions: IRS.gov
- • State income tax rates and brackets: Arizona Department of Revenue
- • Median household income, home value, and demographics: U.S. Census Bureau ACS
- • Cost of living comparisons: U.S. Bureau of Labor Statistics CES
- • National average benchmarks: Tax Foundation state-level tax burden studies
Disclaimer: Estimates are for informational purposes only. Actual tax liability depends on filing status, deductions, credits, and individual circumstances. Consult a licensed tax professional or your state revenue agency for binding tax guidance.
Reviewed by LevyIO Tax Research Team · Published 2026-01-15 · Last updated 2026-04-30
Calculate 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 Prescott, AZ?
Prescott, Arizona has a state income tax rate up to 2.5%. The property tax rate is 0.65% and the combined sales tax rate is 6.29%.
How much is property tax in Prescott?
The effective property tax rate in Prescott is 0.65%. On the median home price of $333,000, this equals approximately $2,165 per year or $180 per month. This is below the national average of 1.1%.
What is the sales tax rate in Prescott?
The combined sales tax rate in Prescott is 6.29%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Prescott's tax burden compare to other cities?
Prescott has a low overall tax burden. The effective total tax rate for a median-income household is approximately 23.6%. The combination of 2.5% state income tax, 0.65% property tax, and 6.29% sales tax determines the total burden. Cost of living index is 104.1 (100 = national average).
Are there any local taxes in Prescott?
Prescott 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).