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Arizona Tax Calculator 2026

Estimate your annual Arizona state income tax under the flat 2.5% rate — and see exactly how much the flat tax saves you versus the old brackets.

📊 Estimate Your Arizona Income Tax
Arizona Subtractions (tax-exempt income included above)
Enter amounts already counted in income above that Arizona does not tax. Government pension subtraction is capped at $2,500.
$125 credit each
$25 credit each
Estimated Arizona Income Tax (2026)
—
Gross income—
− 401(k) / IRA—
− Arizona subtractions—
− Deduction—
Arizona taxable income—
Tax at flat 2.5%—
− Dependent credits—
Arizona tax owed—
Effective AZ rate—

Estimate only — not tax advice. Arizona conforms to federal AGI; complex situations may differ. Arizona Department of Revenue is authoritative.

Arizona Tax Quick Facts (2026)
Income tax2.5% flat
Local income taxNone
Std deduction (Single)$16,100
Std deduction (MFJ)$32,200
Dependent credit <17$125
Dependent credit 17+$25
Sales tax (avg combined)~8.2%
Property tax (effective)~0.43%
Returns dueApril 15
Related Calculators
Official Resources

How Arizona Income Tax Works in 2026

Arizona has one of the simplest income tax systems in the country. Since tax year 2023 there is a single flat 2.5% rate — no brackets, no local income tax. What still takes a little work is figuring out your Arizona taxable income, because Arizona starts from your federal AGI and then applies its own subtractions and deduction.

The Arizona Taxable Income Waterfall

  1. Federal adjusted gross income — your starting point.
  2. Arizona subtractions — Social Security, active-duty military pay, military retirement, up to $2,500 of government pension, U.S. bond interest, and others come out.
  3. Deduction — the Arizona standard deduction (matching federal amounts) or itemized deductions, whichever is larger. Standard-deduction filers can add 25% of charitable gifts they would have itemized.
  4. × 2.5% — the flat rate is applied to what's left.
  5. − Dependent credits — $125 per dependent under 17, $25 per dependent 17+, subtracted directly from the tax.

Flat 2.5% vs the Old Brackets — What You Save

Before 2022, Arizona used four brackets from 2.59% up to 4.5% (single filers). The move to a flat 2.5% cut taxes for nearly everyone, with the biggest dollar savings going to higher earners. This calculator shows your personal savings versus the old 2021 brackets.

Tax YearStructureTop Rate
2021 & earlier4 brackets4.50%
20222 transitional brackets2.98%
2023 onwardSingle flat rate2.50%
2026Single flat rate2.50%

Income Arizona Does Not Tax

Income TypeArizona Treatment
Social Security benefitsFully exempt
Active-duty military payFully exempt
Military retirement payFully exempt
U.S./AZ/local government pensionUp to $2,500 exempt
Interest on U.S. obligationsExempt
Private pension, 401(k), IRATaxable at 2.5%
Arizona lottery winningsUp to $5,000 exempt

Standard vs Itemized in Arizona

Arizona's standard deduction matches the federal figures: $16,100 single, $32,200 married filing jointly, $24,150 head of household for 2026. You can itemize on your Arizona return even if you took the federal standard deduction — Arizona itemized deductions largely track federal ones. Standard-deduction filers also get a bonus: add 25% of the charitable contributions you would have itemized (HB 2757).

Dependent and Charitable Tax Credits

Beyond the dependent credit ($125 under 17, $25 for 17+), Arizona is famous for its dollar-for-dollar charitable tax credits — Qualifying Charitable Organizations, Qualifying Foster Care Organizations, public/private school credits, and the military relief fund. These directly reduce your Arizona tax and can, combined, eliminate a typical filer's liability entirely.

Arizona's Overall Tax Picture

Low income tax (2.5% flat), no local income tax, low property tax (~0.43% effective), and no estate or inheritance tax make Arizona very tax-friendly. The trade-off is a relatively high combined sales tax (TPT) that averages about 8.2% statewide.

Frequently Asked Questions — Arizona Income Tax

A flat 2.5% on all taxable income, regardless of earnings. Arizona replaced its four-bracket system (2.59%–4.5%) with this single rate beginning in tax year 2023, making it one of the lowest income taxes among states that tax wages.
Begin with federal AGI, apply Arizona subtractions (Social Security, military pay/retirement, up to $2,500 of government pension, U.S. bond interest), subtract the standard or itemized deduction, apply 2.5%, then subtract dependent credits.
It conforms to federal: $16,100 single and married filing separately, $32,200 married filing jointly, $24,150 head of household. Standard-deduction filers can also add 25% of the charitable contributions they would have itemized.
No tax on Social Security, active-duty military pay, or military retirement. Up to $2,500 of U.S./Arizona/local government pension income is exempt. Private pensions and 401(k)/IRA withdrawals are taxed at the flat 2.5%.
$125 per dependent under 17 and $25 per dependent 17 or older, applied directly against your Arizona tax. It phases out above $200,000 (single) / $400,000 (married filing jointly) federal AGI.
Substantial for most filers. A single filer with $80,000 taxable income paid roughly $2,670 under the 2021 brackets versus $2,000 at 2.5% — about $670 saved a year. Savings grow with income because the old top rate was 4.5%. This calculator shows your exact figure.
Yes. Arizona allows state itemizing independent of your federal choice, and AZ itemized deductions largely follow federal rules. Run it both ways — many Arizonans save by itemizing on the state return.
No. No Arizona city or county levies an income tax. The 2.5% statewide rate is the only income tax. Cities raise revenue through Transaction Privilege (sales) Tax instead.
Because of the standard deduction and exemptions, almost everyone's effective Arizona rate is below the 2.5% headline. A single filer earning $60,000 has an effective Arizona rate of roughly 1.8%, and lower earners pay even less — or nothing at all once the standard deduction wipes out taxable income.
April 15, matching the federal deadline. A federal extension gives an automatic Arizona extension to October 15, but tax owed is still due April 15 to avoid interest and penalties.
Yes — flat 2.5% income tax, no local income tax, exempt Social Security and military income, low property tax (~0.43%), no estate or inheritance tax. The main offset is a relatively high combined sales tax (TPT) averaging ~8.2%.
Last updated: January 2026  ·  Sources: Arizona Department of Revenue, AZ Individual Income Tax Highlights, AZ Deductions & Exemptions, IRS