Arizona (AZ) Tax Rates — 2026
Income Tax
2.5%
Sales Tax
8.37%
Property Tax
0.55%
Income Tax
Type: Flat rate — 2.5% on all taxable income
Standard Deduction: Single: $14,600 | Married Filing Jointly: $29,200
Sales Tax
State Rate5.6%
Avg Local Rate2.77%
Combined Rate8.37%
Groceries: Exempt
+1.80% vs national avg
Property Tax
Effective Rate0.55%
Median Annual Tax$1,707
-0.52% vs national avg (1.07%)
Retirement Income Tax
Social SecurityNO
PensionsPARTIAL
401(k) / IRAYES
Estate & Inheritance Tax
Has Estate Tax: NO
Corporate Tax
Corporate Income Tax Rate: 4.9%
Additional Notes
Arizona moved to a flat income tax rate of 2.5% in 2023. Up to $2,500 of public/private pension income is exempt from state tax.
Compare with another state:
Sources: Arizona Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.