Arizona Tax Guide 2026

Arizona Income Tax Overview

Arizona has a Flat 2.5% rate since 2023. When combined with federal income tax and FICA taxes, Arizona residents in the median income range of $65,913 typically face a combined effective tax rate of approximately 29% on their gross income. The state income tax is calculated on taxable income after the federal standard deduction of $16,100 (single) or $32,200 (married filing jointly) for 2026.

Arizona Sales Tax Rate 2026

Arizona's combined sales tax rate is 8.38%, which includes a state rate plus an average local rate. On a $100 purchase, you pay $8.38 in sales tax — and $41.90 on a $500 purchase. Rates can vary within the state based on county and city jurisdiction.

Property Taxes in Arizona

Arizona homeowners pay an effective property tax rate of 0.51% annually. On the Arizona median home price of $355,000, that means approximately $1,811 per year — or $151 added to your monthly mortgage payment. Arizona's property tax rate is near the national average of 1.07%.

Total Tax Burden for Arizona Residents

When calculating the total tax burden for a Arizona household earning $65,913 annually, you must add: federal income tax (approximately $7,910), FICA taxes (7.65% = $5,042), Arizona state income tax (approximately $1,153), and property taxes if you own a home. Use the specific calculators above to get your exact personalized numbers based on your income, filing status, and situation.

Tax Tips for Arizona Residents in 2026

• Maximize your 401(k) to $24,500 — reduces both federal AND Arizona state income tax
• HSA contributions are deductible from both federal and state income tax in Arizona
• Check if Arizona has its own standard deduction (some states have lower amounts than federal)
• The 2026 OBBBA tip and overtime deductions apply at federal level — check Arizona conformity