Calculate your take-home pay in The Grand Canyon State. Arizona income tax rate: 2.5%.
Arizona levies a flat 2.5% income tax on all taxable income, one of the lowest flat rates in the nation. Arizona conforms to federal standard deduction amounts. The state has no local income taxes.
| Item | Per Paycheck | Monthly | Annual |
|---|---|---|---|
| Gross Pay | - | - | - |
| Federal Income Tax | - | - | - |
| Arizona State Tax | $0 | $0 | $0 |
| Social Security | - | - | - |
| Medicare | - | - | - |
| 401(k) + Pre-Tax | - | - | - |
| Take-Home Pay | - | - | - |
Arizona has a flat income tax rate of 2.5%. This calculator estimates your take-home pay after federal income tax, state income tax, Social Security, Medicare, and any pre-tax deductions like 401(k) contributions. Enter your salary or hourly wage above to see a detailed breakdown of your paycheck.
Arizona moved to a flat 2.5% income tax rate starting in 2023, down from a progressive system that topped out at 4.5%. This makes Arizona one of the most tax-friendly states in the West. The standard deduction is $14,600 for single filers and $29,200 for married filing jointly in 2026. Arizona has no local income taxes.
Regardless of state taxes, all Arizona workers pay federal income tax using the 2026 brackets: 10% on the first $11,925 of taxable income (single), 12% up to $48,475, 22% up to $103,350, 24% up to $197,300, 32% up to $250,525, 35% up to $626,350, and 37% on income above that. The standard deduction is $15,000 for single filers and $30,000 for married filing jointly in 2026.
All workers in Arizona pay Social Security tax at 6.2% on wages up to $176,100 (2026) and Medicare tax at 1.45% on all wages. An additional 0.9% Medicare surtax applies to wages over $200,000 for single filers. These federal payroll taxes apply uniformly regardless of which state you live in.
Pre-tax deductions reduce your taxable income for both federal and state purposes. Contributing to a 401(k) (up to $24,500 in 2026, plus $8,000 catch-up if 50+) lowers both your federal and AZ state tax bill. Health Savings Account (HSA) contributions ($4,300 individual, $8,550 family in 2026) are also pre-tax. Review your W-4 withholding: if you receive a large refund each year, you may be overwithholding, which means less money in each paycheck. The Tax Bracket Calculator shows your federal marginal and effective rates.
Arizona's 2.5% flat income tax (adopted in 2023) makes it one of the lowest-tax states that still collects income tax. The Phoenix metro area has become a major tech and finance hub, drawing transplants from higher-tax states like California. Cost of living is near the national average, though housing costs have risen sharply since 2020.
At a $75,000 salary, Arizona's 2.5% flat rate costs about $1,400 in state income tax. Compare that to California's ~$3,500 at the same salary, and you can see why Arizona has been one of the top destinations for California transplants. Run both states through our calculators for your exact numbers.