Arizona Income Tax Rate 2025
Arizona has a flat income tax rate of 2.5% on all taxable income. The state transitioned from a progressive system to a flat tax in 2023, significantly simplifying its income tax structure.
Tax Type
Flat Rate
Income Tax Rate
2.5%
Tax Brackets
1 (flat)
How It Works
With a flat tax, your Arizona state income tax is simply 2.5% of your taxable income. Arizona's flat rate is one of the lowest among states that levy an income tax. The state conforms to many federal tax provisions, making it straightforward to calculate your state liability from your federal return.
Arizona does not tax Social Security benefits. The state also has a transaction privilege tax (sales tax) averaging around 8.4% when combined with local rates, and property taxes that vary by county.