Arizona state income tax rates and calculator
Arizona recently switched from a graduated income tax to a flat tax rate of 2.5 percent, making the Grand Canyon State one of the more tax-friendly states in the country.
Arizona personal income tax rates for 2024
Arizona has a 2.5 percent flat tax rate regardless of income level or filing status. The 2.5 percent rate applies to income earned in 2024 and reported on tax returns filed in 2025.
The transition to a flat tax rate of 2.5 percent, which was effective starting with the 2023 tax year, should save Arizona residents money. Under the earlier, graduated-rate tax system, rates ranged from 2.59 percent to 4.5 percent, depending on income level, in 2021, and 2.55 percent to 2.98 percent in 2022. This simplified flat rate provides potential tax relief and streamlines the filing process for taxpayers.
Among the dozen states with a flat rate income tax, Arizona has the lowest rate and is the only rate below 3 percent, according to the Tax Foundation.
Who has to file Arizona state taxes?
Residents living in Arizona for all or part of the year must file taxes if their gross income is more than $13,850 (single filers), $27,700 (married filing jointly filers), or $20,800 (head of household filers), according to the most recent data available on the Arizona Department of Revenue website.
Full- and part-time residents may owe taxes on income earned from another state, as well as on retirement income. Visit the Arizona Department of Revenue for information.
Nonresidents who receive income from Arizona sources may owe income tax on that money — check the instructions for the state’s Form 140NR for details.
Is there a personal exemption or standard deduction in Arizona?
Arizona offers a standard deduction based on filing status — see the table below for 2024 standard deduction amounts in Arizona.
The state used to offer a dependent exemption, but in 2019 the state switched from a dependent exemption to a dependent credit. The state does still offer personal exemptions in certain circumstances — for example, for taxpayers who are 65 and older, or blind, or if a taxpayer paid for a person’s nursing-home costs.
Arizona standard deduction amounts for 2024
| Filing Status | Standard Deduction |
|---|---|
| Single | $14,600 |
| Head of Household | $21,900 |
| Married Filing Jointly | $29,200 |
| Married Filing Separately | $14,600 |
Source: Arizona Department of Revenue
Arizona also offers a higher standard deduction amount for taxpayers who made qualified charitable contributions during the year.
Arizona sales tax rate
When making qualifying purchases in Arizona, you’ll pay a 5.6 percent sales tax rate, though local sales taxes push the average combined state and local sales tax to 8.38 percent, according to the Tax Foundation.
Other things to know about Arizona taxes
- Arizona does not impose an estate tax or inheritance tax.
- Property taxes are set by each county, and appeals, exemptions and requests for relief must be submitted to the property tax agency for the county in which the property is located.
- Residents and businesses alike can take advantage of a variety of state tax credits to offset or lower their tax liabilities, including, for example, a tax credit for qualified donations to a public school. The Arizona Department of Revenue offers information on state tax credits.