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Arizona uses a flat state income tax rate of 2.5% on taxable income in 2026 — one of the lowest flat tax rates in the United States. Arizona's standard deduction is $15,750 for single filers and $31,500 for married filing jointly, set by state law slightly below the 2026 federal amounts. Arizona's average annual salary is approximately $51,000. Arizona has no local city income taxes, making statewide paycheck calculations straightforward. Arizona recently simplified its tax system by moving to this flat rate, down from a graduated bracket system.
2026 federal + state brackets + FICA — updates as you type.
State: Arizona (pre-selected; change the dropdown for other states)
Not applied in this simplified model.
State tax uses your state's 2026 brackets, standard deduction, exemptions and credits for your filing status. City and county income taxes (for example NYC, Maryland counties, Ohio cities) are not included. FICA: Social Security 6.2% on wages up to $184,500 and Medicare 1.45% on all wages shown.
Arizona: flat 2.5% after the 2026 state standard deduction ($15,750 single / $31,500 married joint). No local wage income tax.
Federal brackets (2026 · Single)
Net take-home
$42,277
Total tax: $8,723
Effective rate
17.1%
Marginal rate
14.5%
Income position
Taxable income $34,900 relative to bracket scale (cap $691,848).
| Component | Amount | Notes |
|---|---|---|
| State income tax rate | 2.5% flat | One of lowest in US |
| Standard deduction (single) | $15,750 | Set by AZ law (federal: $16,100) |
| Standard deduction (married) | $31,500 | Set by AZ law (federal: $32,200) |
| Local income tax | None | No city taxes in AZ |
| Component | Amount |
|---|---|
| Gross income | $70,000 |
| Less standard deduction | -$15,750 |
| Arizona taxable income | $54,250 |
| State tax at 2.5% | ~$1,356 |
| Effective state rate | ~1.94% |
| State | Flat Rate | On $70,000 single (approx) |
|---|---|---|
| Arizona | 2.5% | ~$1,356 |
| Indiana | 2.95% | ~$2,036 (plus county tax) |
| Pennsylvania | 3.07% | ~$2,149 |
| Colorado | 4.40% | ~$2,372 |
| Michigan | 4.25% | ~$2,724 |
| Illinois | 4.95% | ~$3,320 |
| Georgia | 4.99% | ~$2,894 |
Arizona offers a unique charitable contribution benefit — taxpayers who take the standard deduction can still deduct an additional amount for charitable contributions made to qualifying Arizona organizations. This is rare among US states and makes Arizona's effective tax burden even lower for charitable givers. This charitable add-on is not modeled in the calculator. Rates: Arizona Department of Revenue and Arizona Legislature (HB 4168).
Arizona charges a flat 2.5% state income tax on all taxable income in 2026 — one of the lowest flat rates in the United States. Arizona's standard deduction is $15,750 for single filers and $31,500 for married filing jointly. On $70,000 income, Arizona state tax is approximately $1,356.
Arizona taxes most retirement income including pension payments, IRA withdrawals, and 401k distributions at the flat 2.5% rate. However, Social Security benefits are exempt from Arizona state income tax. Arizona's low 2.5% rate makes it one of the most tax-friendly states for retirees with investment or retirement income.
Arizona's flat 2.5% is far lower than California's graduated rates, which reach 12.3% plus a 1% surtax over $1 million. On $100,000 income (single filer), Arizona state tax is approximately $2,110 vs about $4,910 in California. This difference is a major driver of migration from California to Arizona for both workers and retirees.
Arizona's standard deduction is $15,750 for single filers, $31,500 for married filing jointly, and $23,625 for head of household in 2026, as set by Arizona legislation (HB 4168). That is slightly below the 2026 federal standard deduction of $16,100 single / $32,200 married joint, so the calculator applies the Arizona amounts separately.
Generally, you pay Arizona income tax on income earned while physically working in Arizona. Arizona has reciprocity agreements with California, Indiana, Oregon, and Virginia — residents of those states working in Arizona pay tax only to their home state.
Arizona state income tax returns are due April 15, 2026, the same as the federal deadline. Arizona uses Form 140 for individual returns. Extensions are available but do not extend the payment deadline.
Educational estimates only. Not IRS advice.