What is the Arizona income tax rate?

Arizona taxes all taxable income at a flat rate of 2.50%. This applies equally to all income levels regardless of how much you earn.

How is Arizona income tax calculated?

Multiply your taxable income by 2.50%. For example, a taxpayer with $75,000 in taxable income would owe $1,875 in Arizona income tax.

Does Arizona have a standard deduction?

Arizona generally does not have a state-level standard deduction. Your taxable income is your gross income minus pre-tax deductions like 401(k) contributions.

How can I reduce my Arizona income taxes?

Common strategies include maximizing pre-tax retirement contributions (401k, IRA), contributing to an HSA, and taking advantage of any available state tax credits.

How does Arizona's 2.50% flat tax compare to neighboring states?

Arizona's flat rate of 2.50% can be compared to neighboring states using the chart on this page. States with no income tax offer the lowest burden, while progressive states may be higher or lower depending on your income level.

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Arizona Income Tax Calculator

Calculate your 2026 Arizona state income tax. See your bracket breakdown, effective rate, and how Arizona compares to neighboring states.

2.5% Flat Tax

Quick presets:

Your Tax Inputs

Annual Gross Income

Filing Status

Pre-Tax Deductions (401k, HSA, etc.)

State Deduction Method

Itemized Deductions

Number of Dependents

State Income Tax

Arizona · 2026

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Effective Rate

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Marginal Rate

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State Tax

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Weekly Take-Home

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vs National Average Effective Rate (4.2%)

Effective Rate vs Neighboring States

Arizona Tax Brackets (2026)

Federal vs Arizona Tax Comparison

Estimate for your income and filing status. Federal uses 2026 brackets and standard deduction.

Item	Federal	Arizona	Total

About Arizona state taxes (Tax year 2026)

Arizona has a flat income tax rate of 2.5% on all taxable income, effective 2023. This replaced a prior progressive system and gives Arizona one of the lowest flat rates in the country.

Groceries are exempt from state sales tax. Prescription drugs are exempt.

Arizona's 2.5% flat rate is well below the national average of ~4.6%, making it one of the most competitive income tax states.

Filing in Arizona: returns for tax year 2026 are administered by the Arizona Department of Revenue and are generally filed in 2027 by the federal April deadline unless Arizona declares a state-specific extension. Tax type on this return: Flat. Top marginal rate: 2.5%. State sales-tax rate: 5.6%. For the most current contact info, see the Federation of Tax Administrators directory.

Arizona — What is Arizona's income tax rate? Arizona has a flat income tax rate of 2.5% on all taxable income, one of the lowest flat rates in the nation. This rate took effect in 2023.

Arizona — Does Arizona tax groceries? No, groceries (unprepared food) are exempt from Arizona's state transaction privilege tax. However, some cities may impose local taxes on food.

Arizona — How does Arizona's tax burden compare? Arizona's 2.5% flat rate is significantly below the national average. Combined with no estate tax and moderate sales taxes, Arizona is considered a tax-friendly state.

Reviewed methodology

How this page is reviewed

Risk tier	High YMYL
Author	Calculover Editorial Team Tax education
Editorial owner	Calculover Tax & Payroll Desk State-tax methodology owner
Reviewer	Calculover Editorial Review Government-source and limitation review
Last reviewed	2026-05-14
Last verified	2026-05-14
Data effective date	2026-01-01
Jurisdiction	Arizona

Methodology

State-tax per-state pages apply the published 2026 bracket schedule, standard deduction, and filing-status rules for the listed jurisdiction. Federal AGI inputs are mapped to state taxable income before bracket math runs. Local taxes (NYC, Philadelphia, certain Ohio cities) are flagged but not embedded in the base estimate.

Assumptions

The user enters federal AGI, filing status, and state-specific adjustments as provided.
Brackets, standard deductions, and credits reflect the 2026 statutory values published by the state Department of Revenue and the Tax Foundation.
Local income taxes and reciprocity-agreement situations are noted but not auto-applied.

Limitations

These pages do not predict mid-year legislative changes, rate adjustments, or new local tax assessments.
Multi-state filers, convenience-of-employer rules, and special-circumstance credits require additional tax-professional analysis.

Sources

State Tax Rates, Federation of Tax Administrators
State Individual Income Tax Rates and Brackets, Tax Foundation
State Government Resources, Internal Revenue Service

Professional guidance: This page is for state-tax education only and is not tax, legal, financial, or investment advice. State tax decisions and multi-state filing should be reviewed with a CPA or enrolled agent licensed in the relevant states.