How much is Arizona income tax?
Arizona income tax at 3 levels of Arizona taxable income — what is left after Arizona's own deductions and exemptions. Local income taxes are not included.
| Taxable income | Single | Married filing jointly |
|---|---|---|
| $50,000 | $1,2502.5% effective · 2.5% marginal | $1,2502.5% effective · 2.5% marginal |
| $100,000 | $2,5002.5% effective · 2.5% marginal | $2,5002.5% effective · 2.5% marginal |
| $250,000 | $6,2502.5% effective · 2.5% marginal | $6,2502.5% effective · 2.5% marginal |
What is Arizona's income tax rate for 2026?
| Taxable income | Rate |
|---|---|
| All taxable income | 2.5% |
Source: AZ DOR Booklet 140ES (2026) — RATE ONLY, checked September 11, 2026.
Can you deduct Arizona income tax on your federal return?
The federal deduction for state and local taxes (SALT) is capped at $40,400 for 2026 — $20,200 if married filing separately — and the cap shrinks toward $10,000 once modified AGI passes $505,000. A single filer with $250,000 of Arizona taxable income owes about $6,250 in Arizona income tax — 15% of that cap before any property tax.
SALT cap workaroundsDoes Arizona have a pass-through entity tax (PTET)?
Yes. A partnership or S corporation can elect to pay Arizona income tax at the entity level. The business deducts it federally, so that state tax is not limited by the SALT cap, and the owners claim an Arizona credit or exclusion for it. Deductsy's plan treats March 15 as the Arizona election or first-payment deadline; it is approximate, so confirm it with Arizona before relying on it.
PTET savings calculatorWhen are Arizona estimated tax payments due?
Arizona estimated tax is due April 15, June 15, September 15 and January 15 of the following year, in 4 equal instalments. Those are the same dates as the federal schedule. Source: Arizona Form 140ES, 2026 Individual Estimated Income Tax Payment.
Safe-harbor calculatorWhat is the penalty for underpaying Arizona estimated tax?
Arizona charges the federal underpayment rate on an underpaid instalment, capped at 10% of the amount unpaid. Paying at least 90% of this year's tax or 100% of last year's on time avoids it. No estimated payments are required if you expect to owe less than $1,000. Source: Arizona Form 221 instructions, 2025 Underpayment of Estimated Tax by Individuals (ADOR 10642 (25)).
Are HSA contributions deductible in Arizona?
Yes. Arizona follows the federal treatment, so an HSA contribution — up to $4,400 with self-only coverage or $8,750 with family coverage for 2026 — lowers Arizona taxable income as well as federal.
Does Arizona give a tax break for 529 plan contributions?
Yes. Arizona lets you deduct up to $2,000 a year of contributions to any state's 529 plan ($4,000 on a joint return). Income limits, per-beneficiary caps and carryforwards differ by state, so check the plan's rules.
529 plan tax savings calculatorWhich states have tax reciprocity with Arizona?
Arizona does not tax wages that residents of California, Indiana, Oregon and Virginia earn in Arizona — those workers give their Arizona employer the exemption certificate. It does not work the other way: an Arizona resident who works in any of them IS taxed there, has no certificate to file, and gets no Arizona credit for that tax, because the state the money was earned in grants the credit on its own return.
What is the property tax rate in Arizona?
Arizona's average effective property tax rate is 0.48% — tied for the 46th highest of 51 jurisdictions and 53% of the national average of 0.9%. That is about $480 a year for every $100,000 of home value; the rate varies widely by county and school district.
Itemize or take the standard deduction?How much does an LLC cost to keep in Arizona each year?
Deductsy's table has no annual report fee or minimum franchise tax for an Arizona LLC. Fees change, so confirm with Arizona's business filing office.
Arizona S-corp tax calculatorHow do Arizona taxes compare with neighboring states?
| State | Top income tax rate | Income tax on $100,000 (single) | Property tax (avg) |
|---|---|---|---|
| Arizona | 2.5% | $2,500 | 0.48% |
| California | 13.3% | $5,739 | 0.71% |
| Nevada | None | $0 | 0.47% |
| New Mexico | 5.9% | $4,358 | 0.7% |
| Utah | 4.45% | $4,450 | 0.52% |
On $100,000 of taxable income a single filer's Arizona income tax is $2,500 — more than in 1 of 4 neighboring states. The lowest is Nevada at $0; the highest is California at $5,739. Arizona's average property tax rate is higher than in 1 of 4.
Income tax is each state's own tax on the same state taxable income; local income taxes are not included.
Tax moves that matter most for Arizona
If you own an S corporation, partnership or multi-member LLC, Arizona's PTET election moves the Arizona income tax on that profit to the business, where it is deductible federally and outside the SALT cap.
An S-corp election can cut self-employment tax once profit is large enough to pay yourself a reasonable salary and still cover payroll and filing costs. The Arizona calculator adds Arizona's own entity fees and taxes to that breakeven.
With 1099 income, a Solo 401(k) can take up to $72,000 a year (2026) — usually more than a SEP-IRA at the same income. Contributions lower both federal and Arizona income tax.
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