Arizona Tax Calculators.
Tax year 2026 income tax rates, brackets, and sales tax for Arizona. Returns for tax year 2026 are generally filed in 2027; source links and last-verified dates are shown below.Tax year 2026 means income earned during calendar year 2026; those returns are generally filed in 2027. State and local sales tax rates can change during the year, so confirm current rules before filing or remitting tax.
Income Tax
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.
| Taxable Income | Rate |
|---|---|
| All taxable income | 2.5% |
Sales Tax
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.
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.
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.
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.