Arizona Tax Overview
Arizona transitioned to a flat income tax rate of 2.5% in 2023, down from its previous progressive structure. This makes it one of the lowest flat-rate income tax states in the country. The state relies more heavily on sales tax revenue to fund government services.
Arizona Tax Quick Facts (2026)
| Income Tax | flat (top rate: 2.5%) |
| Sales Tax (State) | 5.60% |
| Property Tax (Avg Effective) | 0.54% |
| Median Household Income | $72,581 |
| Capital | Phoenix |
| Population | 7.4 million |
Frequently Asked Questions About Arizona Taxes
Does Arizona have a state income tax?+
Yes, Arizona has a flat income tax system with a top marginal rate of 2.5%.
What is the property tax rate in Arizona?+
The average effective property tax rate in Arizona is approximately 0.54% of assessed home value. On a $300,000 home, that is about $1,620 per year.
What is the sales tax rate in Arizona?+
The state sales tax rate in Arizona is 5.60%. Local jurisdictions may add additional sales tax.
What is the median household income in Arizona?+
The median household income in Arizona is approximately $72,581 per year.
How does Arizona's tax burden compare to other states?+
Arizona's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.