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, closely tracking the federal standard deduction. 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.
2025 federal + simplified state + FICA — updates as you type.
State: Arizona (pre-selected; change the dropdown for other states)
Arizona has no local wage income tax in this model — statewide flat effective rate from data file.
Not applied in this simplified model (no credits). For illustration only.
State tax uses a flat effective rate on taxable income — not your actual state brackets. FICA: Social Security 6.2% on wages up to $176,100 and Medicare 1.45% on all wages shown.
SS $3,162.00 · Medicare $739.50
Federal 12.00% + state 2.50%
Estimated take-home
$42,117 / yr
$3,510 / month
Federal brackets (2025 · Single)
| Component | Amount | Notes |
|---|---|---|
| State income tax rate | 2.5% flat | One of lowest in US |
| Standard deduction (single) | $15,750 | Tracks federal |
| Standard deduction (married) | $31,500 | Tracks federal |
| 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 (approx) |
|---|---|---|
| Arizona | 2.5% | ~$1,356 |
| Indiana | 3.05% | ~$1,342 |
| Pennsylvania | 3.07% | ~$1,349 |
| Colorado | 4.40% | ~$2,393 |
| Michigan | 4.25% | ~$2,746 |
| Illinois | 4.95% | ~$2,697 |
| Georgia | 5.49% | ~$2,986 |
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. Arizona also links its standard deduction directly to the federal amount, simplifying state tax calculations significantly.
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 dramatically lower than California's top rate of 13.3%. On $100,000 income, Arizona state tax is approximately $2,125 vs $6,000–$9,000 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 and $31,500 for married filing jointly in 2026 — the same as the federal standard deduction. Arizona links its deduction directly to the federal amount.
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.