Arizona Income Tax Rates & Brackets — 2026
Arizona taxes individual income at a flat 2.5% in 2026. A single filer on $100,000 owes about $2,106 — an effective rate of 2.11%.
The Arizona tax gauge at $100,000
Arizona
$100,000 · Single · TY2026Arizona tax brackets for 2026
Every filing status, as published by Arizona Department of Revenue. Rates apply to Arizona taxable income — that is income after the deductions and exemptions shown on each card.
Single
Standard deduction $15,750| Taxable income | Marginal rate |
|---|---|
| $0 and above | 2.5% |
Married filing jointly
Standard deduction $31,500| Taxable income | Marginal rate |
|---|---|
| $0 and above | 2.5% |
Married filing separately
Standard deduction $15,750| Taxable income | Marginal rate |
|---|---|
| $0 and above | 2.5% |
Head of household
Standard deduction $23,625| Taxable income | Marginal rate |
|---|---|
| $0 and above | 2.5% |
How the maths actually works
Arizona's flat rate applies to taxable income, not to gross income. A single filer on $100,000 first subtracts $15,750 of deductions and exemptions, leaving $84,250 taxable — which is why the effective rate (2.11%) is lower than the statutory 2.5%. Marginal vs effective rate, explained.
What Arizona costs at different incomes
Single filer, standard deduction, no dependents. Rank is out of 50 jurisdictions, lowest tax first.
| Gross income | Taxable income | State tax | Effective rate | Per month | National rank | vs median state |
|---|---|---|---|---|---|---|
| $50,000 | $34,250 | $856 | 1.71% | $71 | 11th of 50 | −$589 |
| $75,000 | $59,250 | $1,481 | 1.98% | $123 | 11th of 50 | −$1,067 |
| $100,000 | $84,250 | $2,106 | 2.11% | $176 | 11th of 50 | −$1,621 |
| $150,000 | $134,250 | $3,356 | 2.24% | $280 | 11th of 50 | −$2,710 |
| $250,000 | $234,250 | $5,856 | 2.34% | $488 | 11th of 50 | −$4,902 |
| $500,000 | $484,250 | $12,106 | 2.42% | $1,009 | 11th of 50 | −$10,024 |
| $1,000,000 | $984,250 | $24,606 | 2.46% | $2,051 | 11th of 50 | −$20,159 |
Arizona income tax calculator
Change the income, filing status and number of dependents to see the bracket-by-bracket breakdown.
- Income
- $100,000
- Standard deduction
- $15,750
- Exemptions
- $0
- Taxable income
- $84,250
Bracket by bracket
| Taxable income in bracket | Rate | Income taxed | Tax |
|---|---|---|---|
| $0 and above | 2.5% | $84,250 | $2,106.25 |
This estimates state income tax only, using the standard deduction and personal/dependent exemptions. It does not model itemised deductions, most credits, retirement-income exclusions, or local income taxes. Your actual bill will differ. See how we calculate this and Arizona's full brackets and sources.
Arizona versus its neighbours
State income tax owed by a single filer on $100,000 in 2026.
What changed since 2025
Arizona's rates, brackets and standard deduction are unchanged from 2025 to 2026.
| 2025 | 2026 | |
|---|---|---|
| Top marginal rate | 2.5% | 2.5% |
| Structure | flat | flat |
| Standard deduction (single) | $15,750 | $15,750 |
| Tax on $100,000 (single) | $2,106 | $2,106 |
Arizona’s brackets, standard deduction and exemptions are unchanged from 2025, so there is no separate 2025 page — these figures are the 2025 figures.
Recent legislated changes
- IndexingEffective
The 2.5% flat rate is unchanged for 2026. The standard deduction is indexed annually but the 2026 amounts had not been published by ADOR as of 2026-09-03.
Retirement income
How Arizona treats retirement income in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
Arizona does not tax Social Security benefits received under Title II of the Social Security Act.
Up to $2,500 of pension income from the State of Arizona, its political subdivisions or US government service may be subtracted. From tax year 2021, uniformed services retired or retainer pay may be subtracted in full. Private pensions have no equivalent subtraction.
401(k), 403(b) and traditional IRA distributions are taxed as ordinary income.
- Public pension subtraction — up to $2,500. Arizona state and political subdivision pensions, and US government service pensions.
- Uniformed services retirement subtraction. 100% of retired or retainer pay, from tax year 2021 forward.
Not modelled: The $2,500 public pension subtraction applies per taxpayer; interaction with joint filing is not modelled.
Source: Arizona Department of Revenue — Identifying Other Taxable Income (retrieved 2026-09-04). Compare every state.
Capital gains
How Arizona taxes a capital gain in tax year 2025. This is verified separately from the rate schedule above and can be for a different tax year.
Arizona subtracts 25% of net long-term capital gain from assets acquired after 31 December 2011. Against the flat 2.5% rate that leaves an effective 1.875%. The 2025 Form 140 instructions state: "You may subtract 25% (.25) of any net long-term capital gain included in your federal adjusted gross income that is derived from an investment in an asset acquired after December 31, 2011."
The subtraction reaches long-term gain only. A short-term gain is taxed at the full flat 2.5%.
Arizona starts from federal adjusted gross income and takes the subtraction on Form 140 lines 20-24, computed on a worksheet in the Form 140 instructions.
The subtraction cannot be stacked with the separate subtractions for gain from a qualified small business or from an exchange of legal tender.
Not modelled: A gain on an asset acquired on or before 31 December 2011 gets no subtraction and is taxed at the full 2.5%. The published 1.875% is the rate for an asset acquired after that date, which is the ordinary case in 2025 but not the only one.
Source: Arizona Department of Revenue — 2025 Form 140 Arizona Resident Personal Income Tax Booklet (retrieved 2026-09-19). Compare every state.
Local income taxes
No Arizona city, town or county levies an individual income tax.
What else to know about Arizona
- Arizona has a single flat rate of 2.5% on all taxable income, the lowest flat individual income tax rate in the country alongside North Dakota's top rate.
- The flat rate has applied since tax year 2023; the graduated schedules and the optional X and Y tax tables are obsolete.
- The Arizona standard deduction tracks the federal basic standard deduction amounts and is indexed annually.
- Arizona has no personal exemption; it offers a $100 per-dependent credit ($25 for dependents aged 17 or older) instead.
- 25% of net long-term capital gain on assets acquired after 2011 may be subtracted from income.
Capital gains
Arizona allows a subtraction of 25% of net long-term capital gain from assets acquired after December 31, 2011, giving an effective rate of 1.875% on those gains. Gains on assets acquired earlier are taxed as ordinary income. A 25% exclusion applies to qualifying long-term gains.
What our figures leave out
Sources
- 1.Arizona Department of RevenueState revenue department2026 Form 140ES Individual Estimated Tax Payment BookletRetrieved · 'For tax year 2026 estimated tax payments, the tax rate for estimating your tax liability is 2.5%.' The booklet directs taxpayers to use their 2025 standard deduction because the 2026 amount is not yet published.
- 2.Tax FoundationResearch organisation (cross-check)State Individual Income Tax Rates and Brackets, 2026Retrieved
- 3.Arizona Department of RevenueState revenue department2025 Form 140 Arizona Resident Personal Income Tax BookletRetrieved · Source of the carried-forward 2025 standard deduction amounts.
- 4.Arizona State LegislatureState statuteA.R.S. Sec. 43-1041, Optional standard deductionRetrieved
- 5.Internal Revenue ServiceIRSRevenue Procedure 2025-32 (2026 inflation adjustments)Retrieved · 2026 federal basic standard deduction: $16,100 single and married filing separately, $24,150 head of household, $32,200 married filing jointly.
Figures on this page were last checked against these sources on . Found something wrong? Report it.