Arizona Income Tax Calculator 2026 โ€” Flat 2.5% Rate

Calculate your 2026 Arizona state income tax. Flat 2.5% rate with $14,600 standard deduction. Compare AZ vs NV, UT, NM, CO, and CA tax rates.

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= $7,083 / month
$2,300 exemption per dependent
Note: Prop 208 surcharge was struck down โ€” no surcharge applies
Common salaries:
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AZ State Income Tax
$0
Federal Income Tax
0%
AZ Effective Rate
0%
Combined Effective Rate
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After AZ Tax Income
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After All Taxes Income

Arizona Tax Computation

Step Description Amount

Tax Computation Summary

How to Use This Arizona Income Tax Calculator

Enter your annual gross income, select your filing status, and choose standard or itemized deductions. Add dependents for additional exemptions. Arizona's flat 2.5% rate means the calculation is straightforward โ€” the same percentage applies to all taxable income above the deductions.

Arizona state tax is paid in addition to federal income tax. Both are displayed so you can see your complete tax picture.

The Formula

AZ Taxable Income = Gross Income โˆ’ AZ Standard Deduction โˆ’ (Dependents ร— $2,300)
AZ Tax = max(0, AZ Taxable Income) ร— 2.5%
AZ Effective Rate = AZ Tax รท Gross Income ร— 100
Note: Prop 208 surcharge (3.5%) was struck down by AZ Supreme Court โ€” does NOT apply

Example

Elena, Single, $95,000 salary in Arizona 2026, 1 dependent:
AZ taxable income: $95,000 โˆ’ $14,600 โˆ’ $2,300 = $78,100
AZ state tax: $78,100 ร— 2.5% = $1,953
AZ effective rate: 2.06% | AZ marginal rate: 2.5%
Compare to California at same income: ~$5,000+ in state tax

Arizona's Tax Advantage

Arizona's flat 2.5% rate is one of the lowest in the Sun Belt. Combined with a generous standard deduction that mirrors the federal deduction, Arizona provides significant tax savings compared to neighboring California โ€” especially for higher earners who would face California's top rate of 13.3%.

What About Arizona's Prop 208?

Proposition 208 was a 2020 ballot measure that would have added a 3.5% surcharge on income above $250,000 (single) or $500,000 (married). Arizona voters approved it, but the Arizona Supreme Court struck it down in 2022 as unconstitutional under the state's aggregate expenditure limit for education. The surcharge was never collected and does not apply to any tax year.

Extended

AZ vs Neighboring States Comparison

Side-by-side Arizona, Nevada, Utah, New Mexico, Colorado, and California tax comparison

State income tax comparison at your current income. Single filer, standard deduction for each state.

StateTax StructureState TaxEffective RateAfter-State Income

Your total tax burden including federal, Arizona state, and FICA payroll taxes.

Tax ComponentAmount% of Gross

Arizona state tax at common income levels using current filing status and dependent settings.

IncomeAZ TaxableAZ State TaxEffective RateCA Equivalent Tax

Frequently Asked Questions

What is the Arizona income tax rate for 2026?
Arizona has a flat income tax rate of 2.5% on all taxable income. This is one of the lowest flat state income tax rates in the United States. Arizona reduced its rate from a previous 2.59% flat rate as part of ongoing tax reduction efforts. All income above the standard deduction is taxed at this single rate regardless of income level.
What is the Arizona standard deduction for 2026?
Arizona aligns its standard deduction with the federal amounts: $14,600 for single filers and $29,200 for married filing jointly in 2026. This is significantly more generous than many states and reduces the amount of income subject to Arizona's 2.5% rate. Arizona also allows itemized deductions for those who itemize federally.
What happened to Arizona's Proposition 208 surcharge?
Proposition 208, passed by Arizona voters in 2020, would have imposed an additional 3.5% tax on income above $250,000 for singles (or $500,000 for married couples) to fund education. However, the Arizona Supreme Court struck it down in 2022, and it was never enforced. As of 2026, there is no Prop 208 surcharge โ€” Arizona's rate remains a flat 2.5%.
How does Arizona's 2.5% flat tax compare to neighboring states?
Arizona at 2.5% is dramatically lower than California's top rate of 13.3% and lower than New Mexico's graduated system (up to 5.9%). Nevada has no income tax at all (0%), making it the only neighboring state with lower income taxes. Utah charges 4.65% flat and Colorado charges 4.4% flat, both higher than Arizona. For high earners, Arizona is far more favorable than California.
What is the Arizona personal exemption for dependents?
Arizona provides a personal exemption of $2,300 per dependent in 2026. This exemption is in addition to the standard deduction and further reduces taxable income. For example, a family with two dependents reduces their Arizona taxable income by $4,600, saving $115 at the 2.5% rate.