Arizona tax summary for 2026
| Tax on wages | Flat rate |
|---|---|
| Starting point | Federal adjusted gross income |
| Rates (single) | 2.5% |
| Standard deduction | Single $15,750 · Married filing jointly $31,500 · Head of household $23,625 · Married filing separately $15,750 |
| Personal exemption | Single $0 · Married filing jointly $0 · Head of household $0 · Married filing separately $0 · per dependent $125 — a credit subtracted from tax |
| Federal income tax deduction | Not allowed |
| Employee payroll taxes | None |
| Local income taxes | None |
Arizona income tax brackets 2026
Rates apply to Arizona taxable income, after the deductions above.
| Taxable income over | Up to | Rate |
|---|---|---|
| $0 | and up | 2.5% |
Worked example: $65,000, single, paid biweekly
Computed by the same engine as the calculator, with no pre-tax deductions.
| Line | Per paycheck | Annual |
|---|---|---|
| Gross pay | $2,500.00 | $65,000 |
| Federal income tax | $216.15 | $5,620 |
| Social Security | $155.00 | $4,030 |
| Medicare | $36.25 | $943 |
| Arizona income tax | $47.36 | $1,231 |
| Take-home pay | $2,045.24 | $53,176 |
Effective tax rate 18.2%; tax on the next dollar earned 22.1%. Arizona taxable income is $49,250.
Second example: $120,000, married filing jointly, two children
Take-home $103,218 a year ($3,969.90 biweekly). Federal income tax $5,640 after a $4,400 Child Tax Credit, Social Security and Medicare $9,180, Arizona income tax $1,963.
How the Arizona estimate is calculated
- Start from federal adjusted gross income — wages minus traditional 401(k) and Section 125 deductions.
- Subtract the Arizona standard deduction for your filing status. Personal exemptions are a credit taken off the tax at the end (dependents = the number of children you enter).
- Apply the flat rate.
- Divide the annual total by your number of paychecks.
What this Arizona calculator does not model
- 2026 inflation adjustment of the standard deduction: A.R.S. § 43-1041(H) directs ADOR to index the HB 4168 amounts the same way the federal basic standard deduction is indexed; ADOR had not published the 2026 figures as of 2026-10-07, so the statutory (tax-year-2025) amounts are used
- Dependent credit details: $25 credit for dependents age 17+, and the 5%-per-$1,000 phase-out above $200,000 AGI ($400,000 joint) — the estimate applies $125 per dependent (the under-17 amount)
- Arizona subtractions for qualified tips, qualified overtime, the senior deduction and car-loan interest (HB 4168, mandatory from tax year 2025) — not applied in this estimate
- Standard deduction increase for charitable contributions (100% of contributions, capped at $1,000 single / $2,000 joint, from 2026)
- Family income tax credit, school tuition and charitable tax credits
- Itemized deductions (SALT capped at $10,000 for Arizona from 2026)
Data notes
- Flat 2.5% rate (A.R.S. § 43-1011) applies for 2026.
- Standard deduction: HB 4168 (signed June 13, 2026, retroactive to tax years after 2024) sets $15,750 single/MFS, $23,625 head of household, $31,500 married filing jointly, with annual inflation indexing by ADOR. LOW CONFIDENCE: these are the statutory tax-year-2025 amounts; ADOR has not yet published the indexed 2026 amounts, which will be somewhat higher.
- Previous file value ($14,600/$29,200, 2024 federal amounts labelled 'estimated') was wrong and has been replaced.
- Dependent credit is a tax CREDIT of $125 per dependent under 17 (A.R.S. § 43-1073.01 as amended by HB 4168, tax years after 2025). Arizona has no personal exemption for the taxpayer or spouse.
Sources
- State income tax: Arizona Laws 2026, Chapter 140 (HB 4168) – amends A.R.S. § 43-1041 (standard deduction $15,750 / $23,625 / $31,500, indexed under subsection H) and § 43-1073.01 (dependent credit $125) (read 2026-10-07)
- State income tax: Arizona Legislature – HB 4168 House summary (signed version) (read 2026-10-07)
- State income tax: Arizona Department of Revenue – Withholding Calculations (2.5% rate for tax year 2023 and beyond) (read 2026-10-07)
Federal figures come from the IRS and SSA; see the methodology page.
Compare nearby and similar states
Neighboring states: California, Colorado, Nevada, New Mexico, Utah
States with a similar tax setup: Louisiana, Iowa, Indiana, Pennsylvania, North Carolina, Kentucky
See every state side by side in the salary comparison by state, or browse all state paycheck calculators.