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NetWageTax

Tax year 2026. Federal, FICA, and state rules last checked . How we calculate

Arizona state income tax 2026

Arizona taxes wages at a single 2.5% rate after roughly $16,100 of income that goes untaxed. A single filer earning $65,000 owes an estimated $1,223 for 2026, an effective rate of 1.88%.

Last reviewed . Data: 2026 tax year (laws enacted through mid-2026).

Tax type
Flat tax
Rate
2.5% flat tax
Estimated tax on $65,000 (single filer)
$1,223
Local income taxes
None
Calculate your Arizona paycheckTips and overtime calculator

How Arizona taxes wages

Flat 2.5% since 2023, one of the lowest flat rates in the country. Uses the federal standard deduction.

At $65,000 of wages, that is the 3rd-lowest estimated bill of the 42 jurisdictions (including DC) that tax wages.

Its 2.5% rate is the lowest of the 16 flat-tax states.

Example: $65,000 salary, single filer

State income tax on a $65,000 salary, bracket by bracket
Wages$65,000.00
Standard deduction−$16,100.00
Taxable income$48,900.00
2.5% on $0 – $48,900$1,222.50
Arizona income tax$1,222.50

That works out to about $102 a month, or an effective rate of 1.88% of wages. Each rate applies only to the part of taxable income inside its bracket.

Calculators for Arizona

  • Paycheck calculator

    Take-home pay after federal income tax, Social Security, Medicare, and Arizona income tax, with Arizona selected.

  • Tips and overtime calculator

    Your federal deduction for qualified tips and overtime, with Arizona selected and its state rules applied to the Arizona estimate.

  • Senior deduction calculator

    A federal deduction of up to $6,000 for each person 65 or older, after the income phase-out.

  • Car loan interest calculator

    A federal deduction for interest on a loan for a new, U.S.-assembled vehicle.

Does Arizona tax tips and overtime?

Arizona follows the federal tips and overtime deduction. HB 4168 (2026) adds a state subtraction for qualified tips and the premium part of qualified overtime, matching the amounts you deduct on your federal return.

The example on this page taxes full wages. The tips and overtime calculator subtracts the deduction for your tips and overtime before it estimates your Arizona tax.

Source: Arizona Legislature: HB 4168 (2026) summary, June 10, 2026. Checked . See how every state treats tips and overtime

To see your federal deduction and Arizona tax together, open the tips and overtime calculator with Arizona selected.

Arizona vs. neighboring states

Workers in Nevada would owe less on the same salary. New Mexico, California, and Utah would charge more.

StateEst. tax on $65,000vs. Arizona
Nevada$0−$1,223
New Mexico$1,907+$685
California$1,975+$752
Utah$2,893+$1,670

Official source

For forms, exact brackets, and filing deadlines, go to the official Arizona tax agency website.

All states and DC on the map

Estimates cover Arizona income tax on wages for a single filer and exclude local taxes and state credits. They are not tax advice. See our disclaimer and how we calculate.