Free Arizona Income Tax Calculator 2026 | AZ Flat 2.5% Rate


100% Free • No Sign-up • Official 2026 AZ Figures

Arizona Income Tax Calculator (2026)

Estimate your 2026 Arizona state income tax — the nation’s lowest flat rate at 2.5%, with a federal-parity standard deduction. No sign-up, no cost.

Estimate Your Arizona Tax

Each dependent is modeled as a $100 credit against your tax.

Standard deduction
AZ taxable income
AZ state tax before credits (2.5%)
Dependent credits
AZ state tax
Effective tax rate
Marginal tax rate

Dependent credit modeled at $100 each; Arizona’s actual credit is $100 per dependent under 17 and $25 for 17+. Arizona has no local income tax. Estimates only — your actual return may differ.

How Arizona Income Tax Works

Arizona taxes income at a flat 2.5% — the lowest flat income-tax rate in the country. That is the result of the 2021 reform (fully in effect from 2023), which replaced a graduated system that topped out at 4.5%. Arizona’s standard deduction mirrors the federal amounts, and the state offers small per-dependent tax credits instead of dependent deductions.

  • One flat rate: 2.5%. Every dollar of Arizona taxable income is taxed at 2.5% — no brackets, so the marginal rate is always the same.
  • Standard deduction: $16,100 single / $32,200 joint / $24,150 head of household. Arizona matches the 2026 federal standard deduction amounts, so a large slice of income is state-tax-free.
  • Dependent credits: $100 under 17 / $25 for 17+. A direct credit against tax owed (this calculator models $100 each; see the note above).
  • No local income tax. Arizona cities and counties do not levy income taxes.
AZ taxable income = gross income − standard deduction
AZ state tax = (taxable income × 2.5%) − ($100 × dependents)
(tax cannot go below $0)

Worked Example: Single, $80,000 Gross Income

Calculation Amount
Standard deduction (single) $16,100
AZ taxable income $80,000 − $16,100 $63,900
AZ state tax (2.5%) $63,900 × 2.5% $1,597.50
Effective rate $1,597.50 ÷ $80,000 2.00%

Frequently Asked Questions

Yes. Among states with a flat income tax in 2026, Arizona’s 2.5% is the lowest — below Ohio’s 2.75% and well below Illinois’s 4.95% or Massachusetts’s 5%. (States with no income tax at all, like Texas and Florida, are lower still — zero.)

$16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for head of household — matching the 2026 federal standard deduction amounts.

Arizona gives a direct credit against your tax: $100 per dependent under age 17, and $25 per dependent age 17 and older. This calculator simplifies that to $100 each — your actual credit may be smaller if your dependents are 17 or older.

The legislature passed the flat-tax reform in 2021; after a court challenge and referendum attempt failed, the flat rate took effect for tax year 2023, replacing the old graduated system that topped out at 4.5%.

No. Arizona cities and counties do not levy income taxes, so the state tax computed here is your full Arizona income-tax bill.

No — it is an estimate for planning purposes only. It models the 2.5% flat rate with the standard deduction and a simplified dependent credit; itemized deductions, other credits, and adjustments can change your actual liability. Consult a licensed tax professional for your return.
Disclaimer: Estimates only — not tax advice. Verify with the Arizona Department of Revenue or a tax professional.



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