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Free Arizona Tax Calculator

Calculate your 2026 Arizona take-home pay after 2.5% flat state tax, federal tax & FICA. One of the lowest state rates. No sign-up.

Last reviewed: January 2026 · Tax data verified against IRS Publication 15-T & state revenue departments

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How This Calculator Works

Arizona charges a flat 2.5% income tax rate for 2026. That's one of the lowest state income tax rates in the country — only states with zero income tax beat it. Arizona moved to a flat tax system in 2023, consolidating its previous progressive brackets into this single rate. The standard deduction is $13,850 for single filers and $27,700 for married filing jointly, mirroring the federal standard deduction amounts.

At 2.5%, the state tax on a $75,000 salary (single) comes to roughly $1,528.75 after the $13,850 standard deduction. That's remarkably low — less than half of what you'd pay in Illinois (4.95%) or Georgia (5.49%) on the same income. Add federal tax and FICA, and you're looking at one of the best take-home pay rates among states that do have an income tax.

Arizona doesn't tax Social Security benefits, and military retirement pay is fully exempt. Property taxes average about 0.63% — quite reasonable. Combined sales tax averages around 8.37% with local add-ons, which is on the higher side. But if you're looking at the income tax picture alone, Arizona is hard to beat among states that still levy one. Compare Arizona to Colorado (4.4%) or Washington (0%) to see the difference, or use the relocation calculator for your salary.

How It's Calculated

Formula

AZ State Tax = (Gross Income − AZ Standard Deduction) × 2.5%

Step-by-Step

  1. 1Subtract AZ standard deduction ($13,850 single / $27,700 married) from gross income
  2. 2Apply AZ flat 2.5% rate to state taxable income
  3. 3Add federal tax (10%–37% progressive brackets) and FICA (7.65%)
  4. 4Pre-tax deductions (401(k), HSA) reduce both federal and AZ taxable income
  5. 5Sum all taxes and subtract from gross pay for net take-home

Example

$75,000 salary, single in AZ: AZ taxable = $61,150. AZ tax = $1,529. Federal ≈ $7,670. FICA = $5,738. Net ≈ $60,063.

For detailed data sources and full methodology, see our Methodology & Data Sources page.

Key Rates & Data for 2026

AZ Flat Tax Rate

2.5%

AZ Standard Deduction (Single)

$13,850

AZ Standard Deduction (Married)

$27,700

AZ Avg Property Tax Rate

~0.63%

AZ Avg Combined Sales Tax

~8.37%

Arizona Tax Calculator FAQ

How much is Arizona state income tax in 2026?

Arizona uses a flat 2.5% rate — one of the lowest state income tax rates in the entire country. It doesn't matter if you make $30K or $300K, the rate is the same. Arizona transitioned from a progressive bracket system to this flat rate, and it's a big win for most taxpayers, especially higher earners who used to face top rates above 4%.

What is the Arizona standard deduction for 2026?

Arizona's standard deduction matches the federal one: $14,600 for single filers, $29,200 for married filing jointly, and $21,900 for head of household. That's notably higher than states like Georgia ($5,400 single) or California ($6,083 single). A single filer earning $75K subtracts $14,600 before the 2.5% rate applies, bringing taxable income down to $60,400 — only about $1,510 in state tax.

Does Arizona have a personal exemption?

Nope, Arizona doesn't offer a personal exemption. But the generous standard deduction more than makes up for it. Compare Arizona to Georgia: a single filer in Georgia gets $5,400 standard deduction plus a $2,700 personal exemption = $8,100 total reduction. In Arizona, you get $14,600 standard deduction with no personal exemption — that's $6,500 more shaved off your taxable income. The math works in Arizona's favor for most people.

Does Arizona tax Social Security benefits?

No, Arizona does not tax Social Security benefits. That's been the law since 2021, when Arizona stopped including Social Security in state taxable income. They also don't tax military pensions or up to $2,500 of some other retirement income. Combined with that low 2.5% flat rate, Arizona is actually quite attractive for retirees who still have earned income.

How does Arizona compare to neighboring states for taxes?

Arizona's 2.5% flat rate beats every neighboring state with an income tax. Nevada has zero income tax, so that wins, but among states that do tax income, Arizona is the lowest in the region. New Mexico goes up to 5.9%, California up to 13.3%, and Utah has a flat 4.65%. Arizona's property taxes are also reasonable at about 0.63% average effective rate, and sales tax averages around 8.37% with local additions. Overall, Arizona is one of the most tax-friendly states in the Southwest.

Is Arizona a good state for high-income earners?

Absolutely. The 2.5% flat rate is one of the best deals in the country for high earners. On a $300K salary (single), Arizona's state tax after the $14,600 standard deduction is only about $7,135. Compare that to California where the same earner would pay over $20,000 in state tax, or New York at roughly $17,000. Even Illinois at 4.95% would cost about $14,725. Arizona keeps more money in your pocket than almost any state that still has an income tax.

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<a href="https://thetaxcalc.com/arizona-tax-calculator" title="Arizona Tax Calculator 2026 | 2.5% Flat Rate">Arizona Tax Calculator 2026 | 2.5% Flat Rate</a>

Compare with Other States

Illinois(4.95%)Texas(0%)Florida(0%)California(1%–13.3%)New York(4%–10.9%)Georgia(5.49%)Virginia(2%–5.75%)North Carolina(4.5%)Pennsylvania(3.07%)Ohio(0%–3.99%)Michigan(4.25%)New Jersey(1.4%–10.75%)Colorado(4.4%)Washington(0%)Massachusetts(5%/9%)Indiana(3.05%)Tennessee(0%)Missouri(2%–4.8%)Maryland(2%–5.75%)Wisconsin(3.54%–7.65%)Minnesota(5.35%–9.85%)Oregon(4.75%–9.9%)All State Comparisons →

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