Arizona Income Tax 2026
Estimate onlyArizona taxes income at a single flat rate of 2.5%. See the full 2026 bracket table, worked examples at three income levels, and estimate your Arizona income tax below.
Reviewed by the ClearTally editorial team · Last updated July 4, 2026 · Methodology & sources
These state figures are being re-verified
We found our state bracket data lagging behind the current tax year, so the state figures on this page may be out of date — where they're wrong, they tend to overstate the tax owed. We're re-sourcing all 51 schedules against each state's published rates. Federal figures were re-verified and corrected and are current. Until this notice goes, treat the state number as indicative and check your state's department of revenue before relying on it.
Tax structure
flat
Top rate
2.5%
Rate
2.5%
Local income tax
Not typical
Arizona income tax calculator
Your income after deductions.
Estimated Arizona tax
$1,875
2.50% effective rate
Marginal rate
2.50%
On your last dollar
Effective rate
2.50%
Tax ÷ taxable income
Based on Arizona's single-filer schedule. Married-filing-jointly brackets differ in some states, and this ignores state-specific deductions, exemptions, credits, and local taxes. Estimate only, not tax advice.
Arizona income tax rate (2026)
Each rate applies only to the income within its range, so reaching a higher bracket never taxes your whole income at that rate.
These are single-filer brackets. Rates and the income at which each bracket starts can differ for married filing jointly, married filing separately, and head of household — in some states the joint thresholds are exactly double the single ones, in others they aren't. Check the Arizona department of revenue for the schedule that matches your filing status.
Single filer
| Rate | Taxable income |
|---|---|
| 2.5% | All taxable income |
What Arizona income tax actually costs
Three worked examples run through the same schedule above. Each figure is taxable income— what's left after deductions — not gross salary, so a paycheck of the same size owes less than shown here.
$50,000 taxable
$1,250
2.50% effective · 2.50% marginal
$85,000 taxable
$2,125
2.50% effective · 2.50% marginal
$150,000 taxable
$3,750
2.50% effective · 2.50% marginal
With a flat rate the two figures never diverge: 2.5% is both the marginal and the effective rate at every income level, which makes Arizonatax unusually easy to predict — and means a raise never pushes you into a worse bracket, because there isn't one.
About Arizona income tax
Arizona taxes income at a single flat rate of 2.5% — a top rate that ranks 41 of the 42 states that tax wage income, where 1 is the highest. The median top rate across those states is about 5.35%, so Arizona sits below the middle.
A flat rate changes who carries the burden rather than just how much is collected. Every dollar of taxable income is taxed at 2.5%, so a resident on $50,000 and one on $500,000face the same rate — simpler to work out than a bracketed system, and more favourable to higher earners than a progressive state at the same headline rate.
One limit worth knowing before you rely on the number above: this page applies Arizona's published single-filer schedule to the taxable income you enter. It doesn't include Arizona's own standard deduction, personal exemptions, or credits, each of which lowers a real bill, so treat the estimate as a ceiling rather than a final figure. For the full paycheck picture, combine it with federal tax and FICA using the take-home pay calculator.
States with a similar tax rate
Closest to Arizona's 2.5% top rate, for a like-for-like comparison.
Related tax tools
Arizona income tax questions
Arizona doesn't use brackets — it applies a flat 2.5% rate to all taxable income for 2026, so every dollar is taxed the same and your effective rate equals your marginal rate at any income. The bracket table on this page is the single-filer schedule; a flat rate normally applies to every filing status, but the income thresholds for deductions and exemptions can still differ.
Arizona uses a flat 2.5% rate on taxable income for 2026. The top bracket rate is 2.5%, which is the marginal rate on your highest dollars rather than what you pay overall. On $85,000 of taxable income the effective rate works out to about 2.50%.
About $2,125 on $85,000 of taxable income — an effective rate near 2.50%, with a 2.50% marginal rate on the last dollar. One important distinction: that's taxable income, not salary. If $85,000 is your gross pay, your taxable income is lower once deductions are applied, so your real Arizona bill would be less than this. State income tax is also separate from federal tax and FICA.
Arizona isn't one of the states where local income taxes are a widespread factor, so for most residents the state rate shown here is the whole state-level income tax picture. You may still see other local taxes — property and sales taxes are set locally in most states — but those aren't levied on your income. If you work across a state line, the other state's rules may still apply to you.
It sits below the middle of the pack: 2.5% ranks 41 of the 42 states that tax wage income, where 1 is the highest top rate. The median top rate across those states is around 5.35%. A flat rate also behaves differently from a progressive one — high earners in Arizona pay the same rate as everyone else, which tends to favour them relative to a bracketed state at the same headline rate.
No — and that's the main reason to treat it as an estimate. It applies Arizona's published 2026 tax year (PayrollTax API) single-filer schedule to the taxable income you enter. It doesn't model Arizona's own standard deduction, personal exemptions, or credits, all of which reduce a real bill, nor any local income tax. It also doesn't apply federal tax or FICA, which are separate and usually larger. For an exact figure, use the Arizona department of revenue's own guidance or a tax professional.
Sources & further reading
Arizona figures use the 2026 tax year (PayrollTax API). Estimates for planning only, not tax advice. See https://trycleartally.com/disclaimer.