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Arizona Income Tax Calculator

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Overview of Arizona Taxes

Taxpayers in Arizona face below-average income tax rates and property tax rates, along with very low gas taxes. But the state’s sales tax is among the highest in the country.

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Household Income
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Location
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Filing Status
401(k) Contribution
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IRA Contribution
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Itemized Deductions
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Number of State Personal Exemptions
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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2020 
Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes
Retirement Contributions
Take-Home Pay

* These are the taxes owed for the 2020 - 2021 filing season.

Your 2020 Federal Income Tax Comparison

  • Your marginal federal income tax rate
  • Your effective federal income tax rate
  • Your federal income taxes

Total Estimated 2020 Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2020 - 2021 filing season based on the Trump Tax Plan.

    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes.
    ...read more
  • Last Updated: January 1, 2021

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.

    ...read more
  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

    ...read more
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Taxes in Arizona

Arizona State Tax Quick Facts

  • Income tax: 2.59% - 4.50%
  • Sales tax: 5.60% - 11.20%
  • Property tax: 0.62% average effective rate
  • Gas tax: 18 cents per gallon of regular gasoline, 26 cents per gallon of diesel

Arizona has been one of the fastest growing states in recent years, as low taxes may have played a role in drawing people to the desert. Among U.S. states, Arizona has below-average income and property tax rates, and it has the fourth lowest gas tax rate in the nation. On the other hand, when considering both statewide and local taxes, the Grand Canyon State has the 11th-highest sales tax rate in the country. In all, the effect of Arizona’s tax system varies depending on your specific financial circumstances.

A financial advisor in Arizona can help you understand how taxes fit into your overall financial goals. Financial advisors can also help with investing and financial plans, including retirement, homeownership, insurance and more, to make sure you are preparing for the future.

Arizona Income Taxes

Like the federal income tax, Arizona’s state income tax has rates based on income brackets. The rates range from 2.59% to 4.50%, with higher brackets paying higher rates.

Income Tax Brackets

Single Filers
Arizona Taxable IncomeRate
$0 - $26,5002.59%
$26,501 - $53,0003.34%
$53,001 - $159,0004.17%
$159,001+4.50%
Married, Filing Jointly
Arizona Taxable IncomeRate
$0 - $53,0002.59%
$53,001 - $106,0003.34%
$106,001 - $318,0004.17%
$318,001+4.50%
Married, Filing Separately
Arizona Taxable IncomeRate
$0 - $26,5002.59%
$26,501 - $53,0003.34%
$53,001 - $159,0004.17%
$159,001+4.50%
Head of Household
Arizona Taxable IncomeRate
$0 - $53,0002.59%
$53,001 - $106,0003.34%
$106,001 - $318,0004.17%
$318,001+4.50%

Those rates apply to Arizona taxable income. The starting point for computing Arizona taxable income is federal adjusted gross income (AGI). From here, there are a number of subtractions and additions made to calculate taxable income. For example, interest income from non-Arizona municipal bonds is taxable, and must be added to taxable income.

For the most part, however, calculating taxable income is a matter of subtracting deductions and exemptions from gross income. Itemized deductions in Arizona track very closely to federal itemized deductions. If you choose not to itemize on your Arizona tax return, you can claim the Arizona standard deduction, which is $12,400 for single filers, $24,800 for joint filers and $18,650 for heads of household. Each of these match the federal standard deduction.

Arizona Sales Tax

You’ll have to pay state and local sales taxes on purchases made in Arizona. The statewide rate is 5.60%. When taking all local taxes into account, the state’s average rate is 8.40%, 11th-highest in the nation. The table below shows the combined state and county taxes for every county and the combined state, county and city sales tax rates for several cities in Arizona.

Sales Tax Rates(Updated December 2020)

County
CountyState RateCounty RateTotal Sales Tax
Apache County5.60%0.50%6.10%
Cochise County5.60%0.50%6.10%
Coconino County5.60%1.30%6.90%
Gila County5.60%1.00%6.60%
Graham County5.60%1.00%6.60%
Greenlee County5.60%0.50%6.10%
La Paz County5.60%2.00%7.60%
Maricopa County5.60%0.70%6.30%
Mohave County5.60%0.00%5.60%
Navajo County5.60%0.83%6.43%
Pima County5.60%0.50%6.10%
Pinal County5.60%1.60%7.20%
Santa Cruz County5.60%1.00%6.60%
Yavapai County5.60%0.75%6.35%
Yuma County5.60%1.11%6.71%
City
CityState RateCounty + City RateTotal Sales Tax
Apache Junction5.60%4.00%9.60%
Avondale5.60%3.20%8.80%
Buckeye5.60%3.70%9.30%
Bullhead City5.60%2.00%7.60%
Casa Grande5.60%3.60%9.20%
Casas Adobes5.60%0.50%6.10%
Catalina Foothills5.60%0.50%6.10%
Chandler5.60%2.20%7.80%
Flagstaff5.60%3.58%9.18%
Gilbert5.60%2.20%7.80%
Glendale5.60%3.60%9.20%
Goodyear5.60%3.20%8.80%
Lake Havasu City5.60%2.00%7.60%
Marana5.60%2.50%8.10%
Maricopa5.60%3.60%9.20%
Mesa5.60%2.70%8.30%
Oro Valley5.60%3.00%8.60%
Peoria5.60%2.50%8.10%
Phoenix5.60%3.00%8.60%
Prescott5.60%3.50%9.10%
Prescott Valley5.60%3.58%9.18%
San Tan Valley5.60%1.60%7.20%
Scottsdale5.60%2.45%8.05%
Sierra Vista5.60%2.45%8.05%
Sun City5.60%0.70%6.30%
Surprise5.60%2.90%8.50%
Tempe5.60%2.50%8.10%
Tempe Junction5.60%0.70%6.30%
Tucson5.60%3.10%8.70%
Yuma5.60%2.81%8.41%

While most products purchased in the state will be subject to those rates, some items are exempt. Among the items exempt from sales tax in Arizona are groceries, internet subscriptions, prescription drugs and professional or personal services.

Arizona Property Tax

The typical homeowner pays $1,578 per year in property taxes in Arizona. The average effective property tax rate (total taxes paid as a percentage of home value) is 0.62%. That rate varies somewhat between cities and counties, but no county in Arizona has an effective property tax rate higher than 1.01%, which is just 0.06% below the U.S. average of 1.07%.

Arizona’s sales tax may be on the higher side, but its property taxes are among the lowest in the nation. If you’re looking to refinance or relocate to Arizona, take a look at our guide to Arizona mortgage rates and getting a mortgage in the state.

Arizona Tobacco Tax

On a nationwide scale, Arizona taxes cigarettes at a high rate. In fact, the tax costs $2.00 per pack of 20 cigarettes, or 10 cents per stick.

Arizona Estate Tax

As of January 2005, there is no estate tax in Arizona.

Arizona Alcohol Tax

Arizona collects excise taxes on alcoholic beverages, depending on the type of product being sold. The tax is equal to $3.00 per gallon of liquor, 84 cents per gallon of wine and 16 cents per gallon of beer.

Photo credit: Grand Canyon National Park
  • The Grand Canyon is over one mile deep in places, and as many as 18 miles wide. It may be over 17 million years old.
  • Arizona was the last of the contiguous 48 states to achieve statehood. It did so on February 14, 1912.

Places with the Lowest Tax Burden

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

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Better
Rank County Income Tax Sales Tax Property Tax Fuel Tax

Methodology

To find the places with the lowest tax burdens, SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden, we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income after taxes. This balance is then multiplied by 35% to estimate the sales tax paid.For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to calculate a total tax burden. Finally, each county was ranked and indexed, on a scale of 0 to100. The county with the lowest tax burden received a score of 100 and the remaining counties in the study were scored based on how closely their tax burden compares.

Sources: US Census Bureau 2018 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset