Arizona State Taxes
Quick Tax Facts
Income Tax: 2.5%
State Sales Tax: 5.6%
Median Property Tax: $1,356
Overview
Arizona is considered one of the top 10 most tax-friendly states for middle-class families. It has one of the lowest income tax rates (2.5%) and property tax rates (6th lowest). Arizona’s sales tax rate, which is called a transaction privilege tax (TPT) is one of the highest in the country.
Arizona Income Tax
For the 2023 tax year and beyond, the state will use a flat rate of 2.5% for income taxes. Non-residents and seasonal residents (part-time) must also use the flat tax rate.
Who Must File?
Residents and non-residents must file an individual income tax return if they receive income from sources within Arizona, such as wages, rental income, business income, real estate sales, or income from other Arizona sources.
The filing threshold is based on filing status and federal gross income (excluding non-taxable Arizona income):
- Single and gross income is more than $13,850;
- Married filing joint and gross income is more than $27,700;
- Married filing separate and gross income is more than $13,850; and
- Head of Household and gross income is more than $20,800.
Non-residents are subject to the same income thresholds but should file Form 140NR, Nonresident Personal Income Tax Return. To determine if the income threshold is met, non-residents should check out the guidance provided by the Arizona Department of Revenue here.
Arizona Sales Tax
Arizona has a state sales tax rate (known as transaction privilege tax) of 5.6%. Each local government can also impose an additional sales tax of up to 5.6% for a total of 11.2%. The average local sales tax is 2.8% and the average combined rate (state & city) is 8.4%. Tucson, for example, has a sales tax rate of 8.7% which consists of the state sales tax of 5.6%, Pima County sales tax of .5%, and the city’s tax of 2.6%. You can find a list of sales tax rates by city here.
Arizona Property Taxes
Property taxes in Arizona are assessed at the county level and the tax rate varies by county. For example, Greenlee County’s median property tax is only $303 annually, while residents in Maricopa County average $1,418. Arizona’s median property tax is currently $1,356 per year (2022). Overall, Arizona is ranked 31 out of 50 in the U.S. for the average amount of property taxes collected.
| Highest | $1614 |
|---|---|
| Median | $1356 |
| Lowest | $303 |
Yearly Cost Per Resident
Arizona Tax Holidays
At this time, Arizona does not offer any tax holidays.
Arizona Tax Resources
If you need assistance preparing your Arizona state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the Arizona Department of Revenue website for additional resources.
- Individual Income Tax Forms
- Arizona Check Refund Status portal
- DOR Customer Service 602-255-3381 or 800-352-4090
- Property Tax Questions 602-716-6843
- AZ Taxes website – make or cancel a tax payment
