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Arizona Income Tax Rates (2026)

Arizona Income Tax Rates (2026)

The quick answer: a flat 2.5% rate

Arizona taxes income at a single flat rate of 2.5%, regardless of how much you earn. Unlike a graduated system, there are no brackets to climb through — the same rate applies to your first dollar of taxable income and your last.

Arizona is one of 14 states using a flat-rate income tax structure, a middle ground between no income tax at all and a fully graduated bracket system.

What this means for your paycheck

On a $75,000 single-filer salary, Arizona’s income tax works out to about $1,875 in state income tax for the year, leaving roughly $59,718 in take-home pay after federal tax, state tax, and FICA — an effective total tax rate of about 20.4%. Enter your own salary and filing status below for your exact numbers.

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Does Arizona have a state income tax?

Yes. Arizona taxes income at a flat 2.5% rate.

What is Arizona's income tax rate?

A flat 2.5% on all taxable income.

Does Arizona tax retirement account withdrawals the same as wages?

Generally yes — 401(k), IRA, and pension withdrawals are typically taxed at Arizona’s regular income tax rate, the same as wage income. Some states carve out specific exemptions for retirement income; check Arizona’s Department of Revenue for any such exemption.

How much is state tax on a $75,000 salary in Arizona?

About $1,875 a year for a single filer with no other adjustments, based on Arizona’s flat rate. Use the calculator above for your own salary and filing status.

Where can I verify current Arizona tax rates?

The Tax Foundation publishes current state-by-state income tax data annually. Rates and brackets change from year to year via state legislation, so confirm the current figures before relying on any specific number, including the ones on this page.

How Arizona compares

Flat-tax states have become more common in recent years as several states have simplified away from graduated brackets. A flat rate is simpler to plan around than a bracket system, though it means a lower-income filer pays the same rate as a much higher earner, unlike a graduated system.

This article is for educational purposes only and isn't legal, financial, or tax advice. See our Disclaimer for details.

Nicholas Bulgin

Written by Nicholas Bulgin

Nicholas Bulgin is an entrepreneur and investor with hands-on experience across stocks, cryptocurrency, real estate, and emerging asset classes. He writes about the practical mechanics of building and managing wealth.