Arizona income tax brackets for 2026
Arizona taxes wages at a flat 2.5%. The rates apply to taxable income: your wages after pre-tax deductions and the deductions and exemptions shown below.
| All filing statuses: taxable income | Rate |
|---|---|
| Over $0 | 2.5% |
Deductions, exemptions and credits
| Standard deduction | $8,350 single · $16,700 married |
|---|---|
| Dependent credit | $100 each |
- Arizona taxes all income at a flat 2.5%, tied with North Dakota's top rate for the lowest income tax rate in the country.
- Arizona withholding works differently from most states: on Form A-4 you pick a percentage of gross pay to withhold, from 0.5% to 3.5%. If you do not file one, your employer withholds 2.0%. This calculator shows the tax you are likely to owe for the year, which can differ from what your chosen percentage withholds.
- The standard deduction follows the federal amount from before the 2025 federal tax law: $8,350 for a single filer and $16,700 for a married couple in 2026.
No Arizona payroll deductions
Arizona does not take disability, paid leave or unemployment contributions from employees. State unemployment insurance is paid by employers, so the only deductions from a Arizona paycheck are federal taxes, Arizona income tax and anything you choose, such as 401(k) contributions or health insurance.
Local income taxes in Arizona
Arizona cities do not tax wages. They charge transaction privilege (sales) taxes instead.
Example: $60,000 salary in Arizona
A single filer earning $60,000 a year, paid every two weeks, with a standard 2026 W-4 and no 401(k) or health deductions:
| Every two weeks | Per paycheck | Per year |
|---|---|---|
| Gross pay | $2,307.69 | $60,000.00 |
| Federal income tax | -$193.08 | -$5,020.00 |
| Social Security (6.2%) | -$143.08 | -$3,720.00 |
| Medicare (1.45%) | -$33.46 | -$870.00 |
| Arizona income tax | -$49.66 | -$1,291.25 |
| Take-home pay | $1,888.41 | $49,098.75 |
Arizona income tax is about $1,291.25 a year here, 2.15% of gross pay. All taxes together take 18.2% of pay. Federal withholding is the 2026 single schedule: $60,000 less the $8,600 allowance gives $51,400, taxed at $1,240 plus 12% above $19,900, or $5,020 a year.
Take-home pay in Arizona at different salaries
Yearly take-home pay for a single filer in Arizona, paid every two weeks, with no pre-tax deductions or local tax. For a married couple filing jointly on $120,000, take-home pay is about $98,198 a year (18.2% in taxes).
| Salary | Arizona tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $30,000 | $541 | $25,744 | $990.14 |
| $45,000 | $916 | $37,421 | $1,439.28 |
| $60,000 | $1,291 | $49,099 | $1,888.41 |
| $80,000 | $1,791 | $63,319 | $2,435.34 |
| $100,000 | $2,291 | $76,889 | $2,957.26 |
| $150,000 | $3,541 | $110,250 | $4,240.38 |
| $250,000 | $6,041 | $177,141 | $6,813.11 |
How the Arizona paycheck estimate works
Federal income tax follows IRS Publication 15-T for 2026: your paycheck is annualized, an allowance for the standard deduction is taken off, the 2026 withholding schedule for your filing status is applied, and W-4 credits and extra withholding are added back per paycheck. Social Security is 6.2% of wages up to $184,500 and Medicare 1.45%, plus 0.9% on wages over $200,000.
Arizona tax is estimated for the whole year: wages after pre-tax deductions, less the standard deduction, run through the brackets above, minus credits, then divided by the number of paychecks. Arizona employers withhold the percentage you choose on Form A-4 (2.0% by default), not an amount worked out from brackets.
Arizona tax = Brackets(Wages − pre-tax deductions − standard deduction) − credits