Taxes in Tempe, Arizona
Complete tax guide for Tempe, AZ. State income tax up to 2.5%, 0.6% property tax, 8.1% sales tax. Calculate your total tax burden.
State Income Tax
2.5%
Arizona
Property Tax
0.6%
Effective rate
Sales Tax
8.1%
Combined rate
Tax Burden
Low
Tempe, AZ Tax Overview
Home to Arizona State University
Population
180,587
Median Income
$59,116
Cost of Living
105.7 (100 = avg)
State Income Tax
2.5%
Median Home Price
$385,000
Tempe Tax Calculator
Pre-filled with Tempe median: $59,116
Total Tax Burden in Tempe
$11,056
Take-Home: $48,060 · Effective Rate: 18.70%
Federal Tax
$5,055
8.55% eff.
AZ State
$1,478
2.50% eff.
FICA
$4,522
7.65% eff.
Take-Home
$48,060
81.30% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $59,116.00 | $4,926.33 |
| Federal Income Tax | -$5,055.42 | -$421.29 |
| Arizona State Tax | -$1,477.90 | -$123.16 |
| Social Security (6.2%) | -$3,665.19 | -$305.43 |
| Medicare (1.45%) | -$857.18 | -$71.43 |
| Take-Home Pay | $48,060.31 | $4,005.03 |
Property Tax in Tempe
Median Home
$385,000
Annual Tax
$2,310
Monthly Tax
$193
Effective Rate
0.6%
Sales Tax in Tempe
Combined Rate
8.1%
State Portion
~5.6%
Local Portion
~2.5%
The combined sales tax rate in Tempe is 8.1%, which is above the national average of 7.12%. On a $100 purchase, you would pay $8.10 in sales tax.
Tax Burden Comparison
| Tax Type | Tempe | Arizona Avg | National Avg |
|---|---|---|---|
| Income Tax | 2.5% | 2.5% | 4.6% |
| Property Tax | 0.6% | ~0.6% | 1.1% |
| Sales Tax | 8.1% | ~8.1% | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Tempe 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 Tempe (0.6%) 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 8.1% 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.
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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 Tempe, AZ?
Tempe, Arizona has a state income tax rate up to 2.5%. The property tax rate is 0.6% and the combined sales tax rate is 8.1%. Home to Arizona State University
How much is property tax in Tempe?
The effective property tax rate in Tempe is 0.6%. On the median home price of $385,000, this equals approximately $2,310 per year or $193 per month. This is below the national average of 1.1%.
What is the sales tax rate in Tempe?
The combined sales tax rate in Tempe is 8.1%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Tempe's tax burden compare to other cities?
Tempe has a low overall tax burden. The effective total tax rate for a median-income household is approximately 25%. The combination of 2.5% state income tax, 0.6% property tax, and 8.1% sales tax determines the total burden. Cost of living index is 105.7 (100 = national average).
Are there any local taxes in Tempe?
Tempe 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). Home to Arizona State University