2025 Arizona Income Tax
Flat rate. Federal brackets, Arizona-specific quirks, and total tax burden vs neighboring states.
What makes Arizona different
- 1.2.5% flat rate (since 2023, reduced from progressive 2.59-4.5%)
- 2.Largest single-step tax cut in AZ history
Recent rate history
How the top Arizona marginal rate has changed in recent years.
| Year | Top rate | Change |
|---|---|---|
| 2025 | 2.50% | +0.00% |
| 2023 | 2.50% | -0.09% |
| 2022 | 2.59% | +0.00% |
| 2021 | 2.59% | — |
Federal — Single
Standard deduction: $15,000
| Rate | From | To |
|---|---|---|
| 10% | $0 | $11,925 |
| 12% | $11,925 | $48,475 |
| 22% | $48,475 | $103,350 |
| 24% | $103,350 | $197,300 |
| 32% | $197,300 | $250,525 |
| 35% | $250,525 | $626,350 |
| 37% | $626,350 | — |
Federal — Married Filing Jointly
Standard deduction: $30,000
| Rate | From | To |
|---|---|---|
| 10% | $0 | $23,850 |
| 12% | $23,850 | $96,950 |
| 22% | $96,950 | $206,700 |
| 24% | $206,700 | $394,600 |
| 32% | $394,600 | $501,050 |
| 35% | $501,050 | $751,600 |
| 37% | $751,600 | — |
Federal — Head of Household
Standard deduction: $22,500
| Rate | From | To |
|---|---|---|
| 10% | $0 | $17,000 |
| 12% | $17,000 | $64,850 |
| 22% | $64,850 | $103,350 |
| 24% | $103,350 | $197,300 |
| 32% | $197,300 | $250,500 |
| 35% | $250,500 | $626,350 |
| 37% | $626,350 | — |
Federal — Married Filing Separately
Standard deduction: $15,000
| Rate | From | To |
|---|---|---|
| 10% | $0 | $11,925 |
| 12% | $11,925 | $48,475 |
| 22% | $48,475 | $103,350 |
| 24% | $103,350 | $197,300 |
| 32% | $197,300 | $250,525 |
| 35% | $250,525 | $375,800 |
| 37% | $375,800 | — |
Total tax burden in Arizona
Income tax alone is misleading. Arizona's combined burden (income + sales + property) on a typical household earning $100,000 with a $350,000 home.
Assumes 40% of income goes to taxable purchases. Actual sales tax exposure varies with spending mix (groceries often exempt). Property tax assumes home ownership; renters effectively pay through rent.
vs neighboring states — total burden on $100k
Single-bracket income tax comparisons miss the bigger picture. TX has no income tax but property tax 2-3× higher than CA. This is the apples-to-apples comparison.
| State | Income | Sales | Property | Total | vs AZ |
|---|---|---|---|---|---|
| Arizona (current) | $2500 | $3372 | $2310 | $8182 | — |
| Nevada | $0 | $3292 | $2065 | $5357 | $-2825 |
| Colorado | $4400 | $3128 | $1715 | $9243 | +$1061 |
| Utah | $4550 | $2976 | $2205 | $9731 | +$1549 |
| New Mexico | $5900 | $3048 | $2800 | $11748 | +$3566 |
| California | $9300 | $3528 | $2590 | $15418 | +$7236 |
Arizona income tax at illustrative incomes (single)
| Gross income | Arizona state tax | Effective state rate |
|---|---|---|
| $50,000 | $1,250 | 2.50% |
| $100,000 | $2,500 | 2.50% |
| $200,000 | $5,000 | 2.50% |
Simplified — applies the flat rate as effective rate. For exact paycheck math see take-home-pay.
Other states for 2025
Common questions
- What is the Arizona income tax rate for 2025?
- Arizona's top rate is 2.50%. The federal top marginal rate is 37%, applied above the highest bracket. Most filers pay an effective rate well below the top — the brackets only apply to the slice of income inside each band.
- When did the 2025 brackets take effect?
- Federal brackets are published by the IRS each November in a Revenue Procedure (Rev. Proc.) for the following tax year. They take effect January 1 and apply to income earned that year, filed by April of the following year. State brackets are set by state legislatures and may align with or diverge from the federal calendar.
- Are these brackets adjusted for inflation?
- Federal: yes — IRS indexes brackets to chained CPI under the TCJA (since 2018). State: varies. Some states (CA, MN, OR, others) index their brackets annually; many do not, which creates "bracket creep" over time as nominal wages grow.
Full data sources and formulas: /sources.
Estimate only — not tax advice. Brackets from IRS Rev. Proc. State rate from state DOR (simplified — does not model all credits, AMT, or local income tax). Property tax: Tax Foundation 2025. Sales tax: Tax Foundation State and Local 2025. Methodology →
Sources
Last reviewed: · Beforeview Editorial · editorial policy