Arizona State Income Tax Overview
Arizona (AZ) state income tax rate: 2.5% flat (flat rate system)
Arizona Income Tax Brackets (2026)
Flat 2.5% on all taxable income — effective as of January 1, 2023 (Prop 208 surcharge struck down)
Arizona moved to a flat 2.5% income tax in 2023, one of the lowest flat rates in the country. This replaced a graduated system with rates up to 8%. Prop 208's 3.5% surcharge on income over $250,000 was ruled unconstitutional.
Median Household Income in Arizona
The median household income in Arizona is $65,913. Arizona's median household income reflects rapid population growth, particularly in the Phoenix metro. The flat 2.5% tax rate is favorable compared to neighboring California's rates up to 13.3%.
How to Use This Calculator for Arizona
- Enter your gross income and filing status
- The calculator applies Arizona's flat income tax rate of up to 2.5% flat
- Subtract your standard deduction and any applicable credits
- Review your estimated state and federal tax liability
Frequently Asked Questions
What is the Arizona state income tax rate?
Arizona has a flat income tax with a top rate of 2.5% flat. Flat 2.5% on all taxable income — effective as of January 1, 2023 (Prop 208 surcharge struck down).
How does Arizona's income tax compare to the national average?
Arizona's top income tax rate of 2.5% flat applies to a flat rate system. Arizona moved to a flat 2.5% income tax in 2023, one of the lowest flat rates in the country. This replaced a graduated system with rates up to 8%. Prop 208's 3.5% surcharge on income over $250,000 was ruled unconstitutional.
What is the median household income in Arizona?
The median household income in Arizona is $65,913. Arizona's median household income reflects rapid population growth, particularly in the Phoenix metro. The flat 2.5% tax rate is favorable compared to neighboring California's rates up to 13.3%.
Is this state income tax calculator free to use for Arizona?
Yes, this state income tax calculator is 100% free with no signup required. It includes Arizona-specific tax rates and calculates your estimated state and federal tax liability instantly.