Arizona Take-Home Pay Calculator
2.5% flat rateEstimate your net paycheck after federal taxes, FICA, and Arizona state income tax.
Last updated: April 2026
Arizona Income Tax
Arizona implemented a flat 2.5% income tax rate in 2023, one of the lowest in the country.
Arizona State Income Tax: What You Need to Know
Arizona implemented a flat 2.5% income tax rate in 2023, one of the lowest in the country.
Arizona's 2.5% flat income tax rate, which took full effect in 2023, makes it one of the most tax-competitive states in the country for earned income. The path to this low rate involved a political battle: voters passed Proposition 208 in 2020 adding a 3.5% surcharge on income over $250,000, but the legislature responded with the Tax Relief Fund Act of 2021, which created a competing flat tax structure that ultimately superseded the surcharge. The result is a clean 2.5% flat rate on all taxable income — no brackets, no surcharges for the vast majority of residents. Arizona conforms closely to federal definitions of income, so Arizona taxable income closely tracks federal adjusted gross income. Arizona's standard deduction for single filers is approximately $13,850 — closely mirroring the federal level. Arizona does not allow cities like Phoenix, Tucson, Scottsdale, or Tempe to impose local income taxes on wages. Arizona does impose a transaction privilege tax (its version of a sales tax) at 5.6% statewide plus local rates averaging 1.5%–2.5% in most cities. Arizona does not tax Social Security benefits and is generally considered retirement-friendly for income tax purposes. For workers relocating from high-tax states like California or Oregon, Arizona's 2.5% flat rate represents a substantial reduction — at $80,000 in income, the state tax drops from roughly $5,000–$6,000 in California to $2,000 in Arizona.
On top of state taxes, all workers also pay federal income tax based on the 2026 progressive brackets, plus FICA taxes: Social Security (6.2% up to $176,100) and Medicare (1.45% on all wages).
Our calculator applies Arizona's 2.5% flat rate to your gross income as a simplified estimate. Actual state taxes may vary based on deductions, exemptions, and local taxes not captured in this estimate.
Arizona Take-Home Pay Examples (2026, Single Filer)
Estimates based on standard deduction, no pre-tax deductions. Last updated: April 2026.
| Salary | Federal Tax | State Tax | FICA | Take-Home |
|---|---|---|---|---|
| $40,000 | $3,167 | $1,000 | $3,060 | $32,773 |
| $60,000 | $6,617 | $1,500 | $4,590 | $47,293 |
| $80,000 | $10,817 | $2,000 | $6,120 | $61,063 |
| $100,000 | $15,617 | $2,500 | $7,650 | $74,233 |
Frequently Asked Questions: Arizona Taxes
When did Arizona switch to a flat 2.5% income tax?
Arizona's flat 2.5% income tax rate took full effect on January 1, 2023. The transition was driven by the Tax Relief Fund Act signed in 2022, which replaced the prior graduated bracket system (rates from 2.59% to 4.5%). Arizona also repealed the voter-approved Proposition 208 surcharge in 2021.
Does Phoenix or Tucson have a city income tax?
No. Arizona cities, including Phoenix and Tucson, do not impose a local income tax on wages. Arizona workers pay only state and federal income taxes — no city-level withholding. This is different from states like Ohio, Pennsylvania, or Michigan where many cities have their own income taxes.
Is Arizona's 2.5% flat rate competitive compared to other states?
Yes, it's among the lowest. For states that have an income tax, Arizona's 2.5% is highly competitive — lower than Colorado (4.4%), Georgia (5.29%), and most others. Only North Dakota matches it at that level. States with no income tax still win outright, but Arizona is near the bottom for taxed states.
Does Arizona tax Social Security or retirement income?
Arizona does not tax Social Security benefits. Other retirement income like 401k distributions is generally taxable at the 2.5% flat rate, though Arizona offers some subtractions for certain government pension income. Overall Arizona is considered moderately retirement-friendly for income tax purposes.
What is Arizona's standard deduction?
Arizona uses its own standard deduction, which for 2026 is approximately $13,850 for single filers — Arizona has historically conformed closely to the federal standard deduction level. Most workers' Arizona taxable income closely mirrors their federal taxable income before the 2.5% rate applies.
How much does an $80,000 salary take home in Arizona?
A single filer earning $80,000 in Arizona takes home approximately $61,063 per year after federal income tax (~$10,817), Arizona state tax (~$2,000), Social Security ($4,960), and Medicare ($1,160). The effective combined tax rate is about 23.7% — significantly lower than high-tax states like California or New York.