2026 Arizona State Income Tax
Effective 2026-04-28
Arizona has a flat 2.5% income tax, the lowest flat-rate income tax in the country. The single-rate structure was enacted by SB 1828 (2022) and accelerated by HB 2890 (2023).
The 2026 Arizona rate
2.5%
Arizona standard deduction (or personal exemption)
The amount Breakeven subtracts from federal AGI before applying the 2.5% rate, by filing status:
| Filing status | Arizona subtraction |
|---|---|
| Single or Married filing separately | $15,000 |
| Married filing jointly | $30,000 |
| Head of household | $22,500 |
Worked examples (Single filer)
| Federal AGI | Arizona taxable | Arizona tax |
|---|---|---|
| $40,000 | $25,000 | $625.00 |
| $80,000 | $65,000 | $1,625.00 |
| $150,000 | $135,000 | $3,375.00 |
| $300,000 | $285,000 | $7,125.00 |
How Arizona moved to a flat 2.5%
Before 2023, Arizona had a four-bracket progressive schedule topping out at 4.5%. SB 1828 (signed 2022) replaced it with a two-bracket schedule, and HB 2890 (2023) collapsed those into a single 2.5% rate that applies regardless of income. The flat rate is in statute and would require legislative action to change.
Arizona standard deduction = federal standard deduction
Arizona is unusual in that its state standard deduction is tied to the federal amount by reference. So when the IRS inflation-adjusts the federal SD each year, Arizona's tracks. For 2026, the federal SD is $15,000 single / $30,000 MFJ, which is what Arizona allows. There is no separate Arizona-specific SD inflation-adjustment.
How Arizona stacks with federal tax
Arizona state tax is owed on top of federal income tax. The Breakeven calculator projects both numbers from your year-to-date paychecks once you select Arizona as your state. For the federal side, see the 2026 federal brackets.
Sources
- Arizona Department of Revenue — Individual Income Tax — authoritative source for the rate and Form 140.
- Tax Foundation — State Individual Income Tax Rates — annual cross-reference for state-tax structure and rate stability.
Note on local taxes and SDI. The calculator projects Arizona state income tax only. It does not include municipal or county income tax (where the state allows them) or state payroll surcharges like SDI / paid family leave. If you live or work somewhere with a local income tax, or in a state with an SDI surcharge, your real paycheck withholding will be higher than projected. See the methodology for the full list.
Last cross-checked on 2026-04-28. Verify with the Arizona Department of Revenue if it matters.
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Canonical reference: https://www.breakeven.tax/brackets/2026/arizona