Tax Calculator Arizona
Calculate combined federal + Arizona state income tax with deductions, filing status, and SALT itemization. Updated for 2026.
Arizona state tax applied. Arizona converted to a flat 2.5% income tax in 2023 — one of the lowest among states with income tax. No local income tax.
Deductions you can claim
Total tax owed
$12,347
Effective rate 14.53% · Marginal 22.0%
Taxable income
$70,000
Take-home
$72,653
Federal + Arizona combined
Federal: $10,222 · Arizona: $2,125
Full breakdown
Step-by-step from gross income to total tax owed.
| Gross income | $85,000 |
| Standard deduction | $15,000 |
| Taxable income | $70,000 |
| Federal income tax | $10,222 |
| Arizona state tax Flat 2.50% rate | $2,125 |
| Total tax | $12,347 |
| Take-home (post-tax only) | $72,653 |
Arizona state tax at a glance
Arizona converted to a flat 2.5% income tax in 2023 — one of the lowest among states with income tax. No local income tax.
Arizona flat tax rate
| Taxable income | Rate |
|---|---|
| $0 – above | 2.50% |
Compare with other states
Related United States calculators
Frequently Asked Questions
What is Arizona's flat tax rate?▾
Arizona charges a flat 2.50% state income tax on all taxable income, regardless of income level. Arizona converted to a flat 2.5% income tax in 2023 — one of the lowest among states with income tax. No local income tax.
How does Arizona tax interact with federal tax?▾
Federal income tax is calculated on your full taxable income using IRS brackets and the federal standard deduction. Arizona tax is calculated separately using Arizona's own brackets and standard deduction. You can deduct up to $10,000 of state and local taxes (SALT) on your federal Schedule A — but only if you itemize.
Does this calculator include city/local taxes?▾
No local or city taxes are calculated. Most Arizona residents don't have local income tax to worry about, but check your specific city — some have payroll, occupation, or wage taxes.
How do I become a Arizona resident for tax purposes?▾
Generally you need to (1) be physically present in Arizona for more than half the year, (2) have your "domicile" (permanent home) in Arizona, and (3) file a state tax return as a Arizona resident if required. States like California and New York are notably aggressive about claiming residency — moving requires careful documentation: change driver's license, voter registration, primary residence, bank accounts, and minimize ties to your former state.
What if I work in one state but live in another?▾
You generally pay state tax to the state where you EARN the income. Many states have reciprocity agreements with neighbors so you only pay your home state. Others require you to file in both and credit the tax paid elsewhere. Remote workers should pay particular attention — some states (NY, CA) tax remote workers of in-state companies regardless of where they live.