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Arizona Income Tax Rates 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 Range

2.5% flat

Brackets

1

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Arizona is only part of the equation — federal taxes apply too.

State Tax Ranking

#12 of 51 Low tax burden at $75,000 income

At $75,000 income (single filer), Arizona ranks #12 out of 51 states — where #1 is the lowest tax burden.

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Tax at Different Income Levels

Income State Tax Effective Rate Take-Home
$50,000 $856 1.71% $45,272
$75,000 $1,481 1.98% $65,570
$100,000 $2,106 2.11% $84,445
$150,000 $3,356 2.24% $121,577
$200,000 $4,606 2.30% $158,327

Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).

Tax Overview

This state uses a flat income tax rate, meaning the same percentage applies to all taxable income regardless of how much you earn. This simplifies tax planning but means there is no bracket benefit for lower earners. The effective rate is very close to the headline rate after deductions.

Tax Planning Tip

With a flat tax rate, your effective state rate is predictable and consistent. Focus tax reduction on pre-tax contributions (401k, HSA) and any state-specific deductions or credits available.

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.

Property Tax & Cost of Living

Property Tax Rate
0.55%
$2,173/yr on $395,000 home
Cost of Living Index
100.7
0.7000000000000028% above national average
Median Home Value
$395,000
Housing index: 106.8 (avg = 100)

Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities by state (2024, all items; national average = 100).

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Frequently asked questions

What is Arizona's income tax rate in 2026?

Arizona has a flat income tax rate of 2.5% on all taxable income, regardless of how much you earn.

Does Arizona tax Social Security benefits?

Arizona does not tax Social Security benefits at the state level.

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