Arizona Paycheck Calculator

Arizona imposes a state income tax of 2.5%. Flat rate since 2023. Your actual Arizona tax liability depends on your filing status, deductions, and taxable income.

In addition to Arizona state tax, all workers pay federal income tax (10%—7% progressive brackets) and FICA taxes (7.65% combined). Use our calculator above to see your complete tax breakdown.

Arizona adopted a flat income tax rate of 2.5% in 2023, making it one of the lowest flat-rate states in the nation. The Arizona Department of Revenue administers state taxes. This rate applies to all taxable income after deductions, providing tax predictability for residents.

Key Tax Features: Arizona conforms to many federal tax provisions, making tax preparation easier. The state offers a standard deduction of $14,600 for single filers and $29,200 for married filing jointly. Arizona does not tax Social Security benefits for most retirees. The state has a relatively low property tax rate compared to many states.

Sales Tax: Arizona's state sales tax rate is 2.5%, with local governments adding an additional 2% to 5.6%, bringing combined rates to up to 11.2% in some areas. Groceries are partially exempt from sales tax.

Business-Friendly Features: Arizona has no franchise tax on businesses and offers various economic development incentives. The Phoenix metropolitan area has become a major tech hub, earning the nickname "Silicon Desert."

Arizona adopted a flat 2.5% income tax rate in 2023, making it one of the lowest flat-rate states in the nation. The state is known for its rapidly growing tech sector in the Phoenix metro area, nicknamed the "Silicon Desert."