Arizona Paycheck Calculator & Income Tax Rates (2026)
Arizona has a flat 2.5% income tax. On a $100,000 salary a single filer keeps $77,028 after federal tax, FICA and $2,098 in state income tax — an effective rate of 23.0%, ranking #12 of 50 states for take-home pay.
Arizona Take-Home Pay Calculator
Pre-loaded with Arizona's 2026 brackets and standard deduction. Adjust salary and filing status; switch states to compare.
2026 Arizona Income Tax Brackets
Arizona taxes all taxable income at a single 2.5% rate. The only thing that changes your bill is the deduction that comes off the top first.
| Taxable income | Rate |
|---|---|
| Over $0 | 2.5% |
Take-Home Pay at Every Income Level in Arizona
With a flat state rate the marginal state rate is constant, but the overall effective rate still rises because federal brackets are progressive.
| Gross Salary | Federal Tax | FICA | State + Local | Take-Home | Effective Rate | Monthly | Marginal State |
|---|---|---|---|---|---|---|---|
| $40K | $2,620 | $3,060 | $598 | $33,723 | 15.7% | $2,810 | 2.5% |
| $50K | $3,820 | $3,825 | $848 | $41,508 | 17.0% | $3,459 | 2.5% |
| $60K | $5,020 | $4,590 | $1,098 | $49,293 | 17.8% | $4,108 | 2.5% |
| $75K | $7,725 | $5,738 | $1,473 | $60,065 | 19.9% | $5,005 | 2.5% |
| $100K | $13,225 | $7,650 | $2,098 | $77,028 | 23.0% | $6,419 | 2.5% |
| $120K | $17,625 | $9,180 | $2,598 | $90,598 | 24.5% | $7,550 | 2.5% |
| $150K | $24,774 | $11,475 | $3,348 | $110,404 | 26.4% | $9,200 | 2.5% |
| $200K | $36,774 | $14,339 | $4,598 | $144,290 | 27.9% | $12,024 | 2.5% |
Single vs. married filing jointly in Arizona
Arizona's joint deduction are the same as single brackets, so the marriage effect here comes from the deduction and the federal side. On $100,000 a joint return keeps $83,015 versus $77,028 for a single filer.
| Household income | Single take-home | Married (joint) take-home | Difference |
|---|---|---|---|
| $75K | $60,065 | $63,553 | +$3,488 |
| $150K | $110,404 | $120,130 | +$9,727 |
| $250K | $177,417 | $191,493 | +$14,077 |
How Arizona Taxes Income
Arizona levies a flat 2.5% income tax on all taxable income — the lowest flat rate of any state that taxes wages, tied only with North Dakota's top rate. The flat tax took effect for tax year 2023, a year ahead of schedule, after revenue triggers were met and after courts invalidated Proposition 208's 3.5% surcharge on incomes above $250,000 in 2022. Before that, the state ran four graduated brackets from 2.59% to 4.5%. The rate is unchanged for 2026 and, absent new legislation, is not scheduled to move. Arizona starts from federal adjusted gross income and adopts the federal standard deduction, so the state return is short and the state tax on a $100,000 salary is about $2,100 for a single filer. Capital gains are taxed as ordinary income at 2.5%, with a 25% subtraction for long-term gains on assets acquired after 2011.
Deductions, exemptions and credits
Arizona conforms to the federal standard deduction — $16,100 single and $32,200 joint for 2026 — and lets filers who take it increase the deduction by a percentage of their charitable contributions. There are no personal exemptions; instead a dependent credit pays $100 per child under 17 and $25 per older dependent. Arizona has no state earned income credit but offers dollar-for-dollar credits for gifts to qualifying charities, foster-care organizations, public schools and private-school tuition organizations.
Local income taxes in Arizona
No Arizona city, county or school district levies an income or wage tax, and none ever has. Local governments rely instead on sales tax add-ons — the reason Phoenix and Tucson combined rates approach 9% — and on property taxes. A paycheck in Phoenix, Tucson or Flagstaff carries the same 2.5% state withholding as anywhere else in the state.
Beyond the Paycheck: Sales and Property Tax
Sales tax
Arizona's transaction privilege tax — technically a tax on the seller, functionally a sales tax — is 5.6% at the state level. Counties and cities add on, producing combined rates of 8.6% in Phoenix and 8.7% in Tucson, with a statewide average near 8.4%. Groceries are exempt from the state tax but most cities tax them at 2–4%. Since January 2025, cities can no longer tax residential rent.
Property tax
Arizona property taxes are low, with an effective rate around 0.5% of market value — a $400,000 home runs roughly $2,000 a year. Proposition 117 caps annual growth in a home's limited property value at 5%, and the state pays a portion of primary-residence school taxes through a homeowner rebate. Homeowners 65 and older with income below set limits can freeze their valuation for three-year renewable periods under the Senior Property Valuation Protection program.
How Arizona Taxes Retirement Income
Arizona does not tax Social Security. Military retirement pay has been fully exempt since tax year 2021. Retirees drawing federal civil service, Arizona state or local government, or other public pensions can subtract up to $2,500 of that income; private pensions, 401(k) and IRA withdrawals are taxed in full at 2.5%. Because the rate is so low, the lack of broader exemptions matters less than it would elsewhere — $60,000 of IRA withdrawals costs about $1,100 in state tax after the federal standard deduction. Arizona is a net destination for retirees from California, Illinois and the Midwest, and the flat rate plus low property taxes are the main draw.
Who Comes Out Ahead in Arizona
High earners gain the most: a $300,000 W-2 earner pays around $7,100 in Arizona tax versus roughly $24,000 in neighboring California. Dual-income couples face no marriage penalty under a flat rate with a doubled standard deduction. Retirees on pensions and IRAs pay full rate, but at 2.5%, and Social Security is untouched. Remote workers for out-of-state employers owe only Arizona's 2.5% on wages earned while physically in the state. The trade-off shows up at the register: combined sales taxes near 9% in the cities, against a cost of living slightly below the national average.
Living on Arizona's Median Income ($58,000)
The median household income in Arizona is $58,000, which is $47,736 a year ($3,978 a month) after all taxes. That is close to the national median. After adjusting for cost of living, the purchasing power of that take-home is equivalent to $49,212 in an average-cost area.
Where Arizona Ranks on a $100,000 Salary
Arizona ranks #12 of 50 for raw take-home pay and #26 for cost-adjusted purchasing power at $100,000. The 14-place gap between the two reflects a below-average cost of living that boosts real purchasing power. The best state (Alaska) leaves $79,125; the worst (Oregon) leaves $70,932. Arizona is $2,098 behind the leader.