How Arizona taxes your paycheck
This page estimates the Arizona income tax taken from your pay in 2026. Arizona has one flat rate of 2.5%, the same for every income and filing status.
Before the rate, you subtract a standard deduction. It is $15,750 for single filers, $31,500 for married couples filing jointly and $23,625 for heads of household. Families also get a $100 credit for each child under 17.
Arizona has no state disability or paid leave tax, and no local income tax. For example, a single person earning $60,000 has $44,250 of taxable income. The tax is $1,106.25.
Arizona tax rates and rules for 2026
Arizona taxes wages at one flat rate of 2.5%.
- Starts from
- Wages after pre-tax deductions
- 401(k) contributions
- Lower your state taxable wages
- Standard deduction
- $15,750 single, $31,500 married filing jointly, $15,750 married filing separately, $23,625 head of household
- Personal credit
- $0 per filer ($0 for a joint return); plus $100 per dependent
Local taxes
No local income tax on wages.
What this estimate leaves out
- Uses the 2025 standard deduction. A.R.S. 43-1041(H) indexes it each year the same way as the federal amount, and the 2026 figure wasn't published when checked.
- The dependent credit is $25, not $100, for dependents 17 or older. This estimate treats every dependent as under 17.
- The dependent credit shrinks above federal AGI of $200,000 ($400,000 married filing jointly) and is gone $19,000 past that.
- Extra exemptions for age 65, blindness and qualifying parents, the charitable standard deduction increase, itemized deductions and other Arizona credits are left out.
Frequently asked questions
What is the Arizona income tax rate for 2026?
Arizona has a flat 2.5% rate. It applies to all taxable income for every filing status.
Does Arizona give a credit for children?
Yes. Arizona's dependent tax credit is $100 for each dependent under 17 and $25 for older dependents. It shrinks at federal AGI above $200,000, or $400,000 for married couples filing jointly.
Does Arizona tax 401(k) contributions?
No. Arizona starts from your federal adjusted gross income, so traditional 401(k) and 403(b) contributions lower your Arizona taxable income.
Is there local income tax in Arizona?
No. Arizona cities and counties don't tax wages, so only the state income tax comes out of your pay.
Sources
- Arizona DOR: 2025 Form 140 resident booklet (2.5% rate, standard deduction, dependent credit)
- Arizona Revised Statutes 43-1041: standard deduction and inflation adjustment
- Arizona DOR: Deductions and exemptions (dependent credit)
Figures checked 2026-10-25. The federal side uses the same 2026 rules as the main paycheck calculator, where the formula and method are explained. Found a problem? Tell us.