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 passed Proposition 208 in 2020 (a 3.5% surcharge on high earners), but the legislature countered with a flat tax plan that took full effect in 2023. At 2.5%, Arizona now has one of the lowest flat income tax rates in the nation. Arizona's flat rate applies to all taxable income — no brackets, no surcharges for most residents. Arizona does not have a city income tax in Phoenix or Tucson. Note that Arizona does impose a transaction privilege tax (essentially a sales tax) of 5.6% plus local additions.
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 Arizona also repealed the voter-approved Proposition 208 surcharge in 2021.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.